Mumbai: Credit cards are useful and innovative financial tool. It allows customers to access advanced credit from the bank without any extra process or hurdle. It helps you to manage everyday expenses, create a credit history, and avail rewards and benefits.
However, some customers rarely use their credit cards or don’t use them at all. In such a situation, these cards become dormant or inactive.
A dormant credit card usually remain inactive for a long duration, spanning roughly from six months to one year. While the card is still open and valid, the issuer hasn’t done any single activity like balance transfer, purchases or cash advances.
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It may negatively impact your credit score which will eventually hinder to get a loan for any personal reason. Banks may close your credit card due to inactivity for a longer period, affecting your credit history. Each credit card offers some perks and rewards on the transactions. Upon dormancy and closure of the card, you will lose your rewards and perks.
Typically, card issuers give you a few days to reactivate your card after deactivating it. The issuer deems an account dormant when the expenses necessary to keep it active eventually surpass the income received. Dormant accounts are kept in separate ledgers by banks. This is done in an effort to lower the risk of fraud associated with using credit cards.
You can visit the bank’s branch nearby or online service portal to make a request for reactivating your dormant credit card. Some banks may require identity verification or updated KYC (Know Your Customer) details.
Some banks automatically reactivate dormant cards when you make a transaction (such as an online purchase or ATM withdrawal).
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