Vision Credit Education, Inc.

A number of consumers mistakenly believe that a credit card account is not active if the card is not active. The truth is, the account is active the moment the credit card is issued and mailed to the consumer.

A credit card requires activation before a cardholder can use it. Some cardholders change their minds and decide not to use the card. They avoid activating the card thinking that the account is not active.

By submitting a credit card application, an applicant consents to a credit check by the credit card issuer. This credit check counts as a hard inquiry, and it appears immediately when a credit card issuer checks your credit report.

Each hard inquiry can affect your credit scores by anywhere from 1 to 5 points. The extent that your scores drop depends on the amount of credit items reported to credit bureaus as well as the presence of other hard inquiries in the past 6 months. Numerous hard inquiries or a short credit history can cause each additional hard inquiry to have a greater negative effect (See How do Inquiries Affect Credit?).

Most consumers are unaware that any charges, such as an annual fee are incurred even if they fail to activate the credit card. Such fees are debts owed, which will require repayment prior to the due date.

If the cardholder fails to make the required minimum payment, then the missed payment will be reported to 1 or more credit bureaus. This will further reduce your credit score, with that account remaining as a negative item for the next 7 years.

Applying for a credit card means that you agree to the terms and conditions established by that card issuer. If you wish to decline the card, you must notify the credit card issuer in writing and either request a waiver of any fees or pay them promptly.