Last update:
A passive credit card usually remains inactive for a long period, spreading from about six months to one year. While the card is still open and valid, the issuer has not done any one activity such as balance transfer, procurement or cash advance.
Understanding your credit score allows you to evaluate your financial situation and estimate possible challenges in debt approval.
A credit card is a useful and innovative financial device that allows customers to reach advanced credit from the bank without any additional procedure or obstruction. This helps you manage everyday expenses, create a credit history and take advantage of awards and benefits.
However, some customers rarely use or do not use their credit cards. In such a situation, these cards become inactive or inactive.
What is a passive credit card?
A passive credit card usually remains inactive for a long period, spreading from about six months to one year. While the card is still open and valid, the issuer has not done any one activity such as balance transfer, procurement or cash advance.
What happens when a credit card becomes inactive?
This can negatively affect your credit score that will eventually obstruct receiving loans for any personal cause.
Automatic closed – Banks can close your credit card due to inactivity for long periods, affecting your credit history.
Loss of awards and allowances – Each credit card offers some allowances and rewards on transactions. On closing the domity and card, you will lose your awards and allowances.
Impact on credit score – A closed of passive credit card will affect your credit history.
Typically, the card issuer gives you a few days to re -activate your card after neutralizing it. The issuer neutralizes an account when the expenses required to keep it active eventually crosses the income received. Dormant accounts are kept in separate leaders by banks. This is done in an attempt to reduce the risk of fraud associated with using credit cards.
You can go to the bank branch or online service portal to request your passive credit card to re -activate. Some banks may require identity verification or updated KYC (knowing their customer).
Some banks automatically activate the passive cards when you transact (such as online purchase or ATM withdrawal).
