Credit Card Rule Update: In today’s time, credit cards are considered very useful for shopping, meeting sudden financial needs and cashback. Many people carry more than one credit card in their pocket. But do you know that if you do not use your credit card for a long time, the bank can consider it ‘dead’ (inactive) and close it forever? Yes, if this happens, your hard-earned good credit profile and accumulated credit limit can be ruined. Therefore it is very important to keep your card active.
Know when and why your card gets closed
According to the guidelines of banks, if a customer does not do any activity with his credit card between 3 to 12 months, then the bank can take action against him. According to the rules of Reserve Bank of India (RBI), it is necessary for the bank to inform the customer before completely closing the card. The card holder should be informed about the closure of the card within 30 days, so that if he wishes, he can re-activate his card within the stipulated time limit.
What will happen if not used for 12 months?
Adhil Shetty, CEO of Bankbazaar, says that if a customer does not use his credit card in any way for 12 months i.e. one year, then action starts from the bank’s side. But before the bank takes any step, it is very important for the customer to have complete knowledge of this rule. Many times people forget to keep the card in their pocket and think that the card is active, but this carelessness weighs heavily on them.
Don’t ignore these small things
RBI guidelines clearly say that it is necessary to carry out any financial transaction or activity through the card at least once within a year. Now the question arises that what is included in the activity? This includes not just shopping, but also generating your card statement, changing your PIN, changing card settings or transaction limits, and managing transaction controls. If none of these are done throughout the year, the card will be considered completely ignored. This will have a direct and negative impact on your credit score (CIBIL Score), which may cause difficulty in getting a loan in future.
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