Do You Have to Activate a Credit Card?

Upon approval, a new credit card typically arrives in the mail, signaling the start of its potential use. An initial step is required before it becomes functional. This step ensures the card is ready for secure transactions and linked to the cardholder.

The Necessity of Activation

Activating a newly received credit card is a required process before it can be used for purchases or cash advances. This activation serves as a security measure, confirming that the card has reached its intended recipient and not fallen into unauthorized hands. It verifies the identity of the cardholder, which helps prevent fraudulent use if the card was intercepted during delivery.

If a credit card is not activated, it remains unusable for any transactions. This means that any applicable annual fees associated with the card may still be charged to the account. Furthermore, if an account remains unactivated for an extended period, the card issuer may ultimately close the account. An account closure could impact one’s credit history.

Methods of Activation

Activating a credit card is a straightforward process, typically offering several convenient methods for the cardholder.

Phone Activation

One common approach is activation by phone, where cardholders call a toll-free number usually found on a sticker attached to the new card or on the card itself. This automated system typically prompts the user to enter the credit card number, expiration date, and sometimes personal identification details like a date of birth or the last four digits of a Social Security Number for verification. Many providers offer 24-hour automated phone lines, allowing for quick activation within minutes.

Online Activation

Another widely used method is online activation through the card issuer’s official website. This often involves logging into an existing online banking account or creating a new one if necessary. Once logged in, the cardholder navigates to a designated activation section, where they input the card number, security code (CVV), and expiration date.

Mobile App Activation

Mobile applications provided by credit card issuers also offer a seamless activation experience. Users download the app, sign in, and locate an “Activate Card” option, providing the required card details and verifying their identity, often through a one-time password sent to a registered mobile number.

Post-Activation Steps

After successfully activating a credit card, there are several important steps cardholders should consider to manage their new account effectively and securely.

Establish a Personal Identification Number (PIN)

Establishing a Personal Identification Number (PIN) is often a subsequent action, particularly for those intending to use their card for cash advances at an ATM or for debit-like transactions at point-of-sale terminals. Many card issuers allow PIN selection or changes through their online portal, mobile app, or by calling a dedicated service line.

Set Up Online Account Access

Setting up online account access is highly recommended for comprehensive management of the credit card. This involves registering the card on the issuer’s website or mobile application, which enables viewing statements, tracking transactions, making payments, and setting up alerts for account activity. Accessing the account online helps cardholders monitor their spending and identify any unauthorized charges promptly.

Securely Dispose of Old Cards

If the new card is a replacement for an old or expired one, securely disposing of the previous card is essential to prevent potential fraud. Plastic cards should be cut through the magnetic stripe and chip, ideally into multiple pieces, and disposed of in separate trash receptacles. For metal credit cards, which are more durable, it is often best to return them to the issuing bank for secure destruction, as many issuers provide a prepaid envelope for this purpose.