In today's time, people often use credit cards to make financial transactions. Credit cards not only provide you with funds in times of emergency but also make expensive purchases easy for you through the facility of EMI. It also helps in building a good credit score and getting attractive rewards.

People use credit cards a lot for their everyday needs and online shopping. However, some customers use it very little or not at all even after getting a credit card, due to which it becomes inactive or dormant.

What does a Dormant Credit Card mean? (Dormant Credit Card?)

If you do not use your credit card for a long time, then it is declared dormant. Usually, this is done when the credit card is not used for six months to one year. That is, during this period you have not done any activity like balance transfer, shopping, or cash advance from your card.

What happens when a credit card becomes dormant?

This can hurt your credit score. That is, if you have to take a loan for any of your needs, then you may have difficulty in getting a loan. Credit score plays an important role in loan approval.

Automatic closure - Banks can close your credit card due to being inactive for a long time, which will have a bad effect on your credit history.

Loss of rewards and perks - Every credit card offers some perks and rewards on transactions. That is, not using the card means that you are losing the opportunity to get facilities like rewards, cashback offers, and lounge access. If the card is inactive and closed, you will lose your accumulated reward points and perks.

Impact on credit score - A dormant credit card can have a bad effect on your credit history. This may cause you trouble in applying for a loan or a new credit card in the future.

Can the credit card be activated again?

If your card has become inactive, you can reactivate it. Usually, the card issuing banks and finance companies give you some time to reactivate the card after deactivating it.

To reactivate your inactive credit card, you can go to a nearby branch of that bank or you can also activate the card by visiting the online service portal. Some banks may ask you for identity verification or updated KYC (Know Your Customer) details for this. At the same time, some banks automatically reactivate your dormant card when you make a transaction (such as online shopping or withdrawing money from ATM).

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