Credit cards are in high demand these days. They're often considered a useful tool for obtaining emergency loans and managing outstanding debt. However, if a card remains inactive for a long period of time, the issuing bank may decide to deactivate it. This puts the cardholder at risk of losing the strong credit history they've built up. What exactly should be done to prevent this card from being deactivated?

When is it deactivated?
Generally, according to bank guidelines for credit card holders, if there are no transactions on the card for three to twelve months, it is likely to be deactivated. It is crucial for the cardholder to inform the bank within thirty days of the card being deactivated; if so, they can inquire about the possibility of reactivating their card.

What happens if a credit card isn't used for a long time? BankBazaar CEO Adil Shetty explained that if a customer hasn't used their credit card in any way for 12 months, it's crucial for the bank to properly inform the customer before taking any action. According to Reserve Bank of India (RBI) guidelines, if no financial activity is performed on a credit card for a year, including generating statements, changing PINs, altering transactions, or monitoring transactions, the card will be considered 'dormant.' This will have a direct and negative impact on the cardholder's credit score.

Important information about credit cards
Leaving a credit card unused for a long time can be risky. Shetty explained that results may vary depending on the customer's past transaction history. Furthermore, the credit limit is determined by the frequency of card usage in a month based on statistical information. Therefore, it is subject to change.

 PC:Rochak Khabre