Can You Cancel a Credit Card Before Activating It?

Receiving a new credit card in the mail after an application presents a decision point regarding its activation. An unactivated credit card has been approved and issued by a financial institution but is not yet enabled for use. This means no transactions can be made, even though the account is officially open. The decision to activate or not often depends on a change in financial circumstances or a reconsideration of the card’s benefits and terms.

Confirming Cancellation Possibility

It is possible to cancel a credit card before it has been activated. The account is open from the moment the application is approved, even if the physical card has not been enabled for transactions. Since there has been no account activity, no balance exists, simplifying the cancellation process. Card issuer policies typically allow for the closure of accounts that have not seen any usage.

Even without activation, an account exists on the issuer’s system and may be reported to credit bureaus. Cancelling an unactivated card means closing an account that has not accrued any charges or interest, which differs from closing an account with an existing balance. Issuers may also close accounts themselves if they remain unactivated for an extended period.

Steps to Cancel an Unactivated Card

To cancel an unactivated credit card, contact the card issuer’s customer service department. The customer service phone number is located on the back of the credit card or on the accompanying documentation. When speaking with a representative, clearly state the intention to close the account and confirm the card was never activated.

The representative will require information to verify identity and account ownership, such as the account number, personal details, and security questions. Confirm during the call that no annual fees or other charges have been applied and that the cancellation will result in a zero balance. Request a confirmation number or a written statement of cancellation for record-keeping purposes.

Understanding the Impact

Cancelling an unactivated credit card has a minimal impact on a credit score, especially compared to closing an active account. When a credit card application is submitted, a hard inquiry is made on the credit report, which can cause a temporary, slight dip in the credit score. This hard inquiry remains on the credit report for up to two years, regardless of whether the card is activated or canceled.

The absence of activity means there is no payment history or credit utilization to report, which are major factors in credit scoring models. Some card issuers might charge an annual fee even if the card is not activated, as the account is considered open upon approval. If an annual fee is assessed, ensure it is waived or refunded upon cancellation to avoid a balance that could negatively impact credit if left unpaid. Canceling an unactivated card prevents potential future annual fees and eliminates an unused line of credit.