If You Apply for a Credit Card, Do You Have to Accept It?

Applying for a credit card does not obligate an applicant to accept it if approved. Submitting an application is merely a request for credit. This article clarifies the stages from application submission to the final decision, along with the implications of that choice.

Understanding the Credit Card Application and Offer

The process of obtaining a credit card begins when an individual submits an application to a credit card issuer. This application typically requests personal details like name, address, and Social Security number, along with financial information such as income and employment status. Providing consent for a credit check is also a standard part of this submission, allowing the issuer to review the applicant’s credit history.

Upon receiving an application, the issuer reviews the provided information and conducts a credit inquiry to assess creditworthiness. This review helps them determine if the applicant meets their criteria for extending credit. The application itself is solely a formal request for a credit line.

If the issuer approves the application, they extend a credit card offer. This offer is an invitation to open a credit account, not a binding agreement at this stage. It outlines specific terms and conditions, which typically include the assigned credit limit, the Annual Percentage Rate (APR) for purchases, balance transfers, and cash advances, and any applicable fees such as annual fees or late payment charges.

The Choice to Accept or Decline

Accepting a credit card offer is entirely voluntary, granting the applicant full control over whether to proceed with opening the account. The decision rests solely with the individual.

Methods of acceptance commonly involve activating the physical card upon its arrival, often through an online portal or a phone call. The account may also become active once the card is used for a purchase. Once activated or used, the account is officially opened and the terms of the offer become effective.

To decline an offer, an applicant can simply choose not to activate the card or discard the mailed materials. There is no formal process required to reject an unwanted credit card offer. The account will not be opened, no credit line will be extended, and no debt will be incurred if the offer is not accepted.

Effect on Your Credit Profile

When a credit card application is submitted, a “hard inquiry,” also known as a “hard pull,” is recorded on the applicant’s credit report. This occurs regardless of whether the credit card offer is ultimately accepted or declined. A hard inquiry signifies that a lender has accessed the credit file to make a lending decision.

A single hard inquiry typically results in a minor and temporary dip in a credit score, often by fewer than five points. While the inquiry remains on a credit report for up to two years, its impact on credit scores generally lessens over time and may only affect scoring models for about 12 months.

Declining the credit card offer after the application does not remove the hard inquiry from the credit report. The inquiry reflects the act of applying for credit, which has already occurred.