Activating Credit Card but not using it

elliott_90

Recently applied for a Credit Card with Halifax with the intent of using it to buy items online, but then paying it off immediately with the money I have in my current account.

I changed my mind so have yet to activate the card, but he rung me today and told me I need to do it by Wednesday. When I asked what happens if I don't, he kind of dodged the question, but made up story about it going against me if I don't do it by Wednesday; It sounded a lot like !!!!!!!! to me.

I'm not interested in using the card, so letting the deadline pass (wed) and not activating it sounds like the best thing to do, or can this go against me, I don't see how it can personally.

[Deleted User]

Not activating it means it will be more likely to be closed. Activating it means you're more likely to be able to keep it before you get closed for domancy.

Now that you have the search against you, what's the reason for now wanting it? It would seem a strange decision not to activate it now.

elliott_90

I have no interest in using the card, so the account closing is what I'd prefer, but I'm wondering if that can go against me in anyway.

Any

The way that it goes against you is that you have search on your credit file and having lot of them in short period of time is harmfull as you look desperate to lenders.

Obviously if you are not applying for anything else and this is your only recent search then it is nothing to worry about at all.

From your tone and capital IMMEDIATELY I gather that you think credit cards are evil? I might be wrong...

You don't need to pay credit card off IMMEDIATELY.. just use it, wait for your statement and pay in full by due date and you will not pay any interest anyway...

It can be good, it is not the credit card that is the problem, but people using it wrongly... (ie treating it as free money and being surprised when it gets out of control) - it can be good in a way that if you are using it properly your credit history will look good to any future lenders (ie you manage your money well) and also you get good protection for your shopping... Also it is good to have one for cases of emergency...

However if you do not trust yourself that you will be treating it properly then it is probably better to get rid.

Tixy

It could also potentially go against you internally at halifax, eg if you apply for a card again next year they might be more likely to decline you, so that could also be what the employee was referring to.

elliott_90

Any wrote: »

The way that it goes against you is that you have search on your credit file and having lot of them in short period of time is harmfull as you look desperate to lenders.

Obviously if you are not applying for anything else and this is your only recent search then it is nothing to worry about at all.

From your tone and capital IMMEDIATELY I gather that you think credit cards are evil? I might be wrong...

You don't need to pay credit card off IMMEDIATELY.. just use it, wait for your statement and pay in full by due date and you will not pay any interest anyway...

It can be good, it is not the credit card that is the problem, but people using it wrongly... (ie treating it as free money and being surprised when it gets out of control) - it can be good in a way that if you are using it properly your credit history will look good to any future lenders (ie you manage your money well) and also you get good protection for your shopping... Also it is good to have one for cases of emergency...

However if you do not trust yourself that you will be treating it properly then it is probably better to get rid.

Pretty spot on. I manage my money well but wasn't sure about the pros/cons about using it in this way to gain a better credit history, which was my original plan.

So you're saying 'using it correctly' will indeed be good for my credit history?

Trajal

elliott_90 wrote: »

Pretty spot on. I manage my money well but wasn't sure about the pros/cons about using it in this way to gain a better credit history, which was my original plan.

So you're saying 'using it correctly' will indeed be good for my credit history?

Over time yes. Well managed credit accounts which show you can be responsible can be beneficial to your credit record. However bear in mind that paying full balance off every single month may not be want certain lenders want, as they won't make money from you, so it's a bit of a balancing act.

Either way, you aren't going to do any harm as such by your planned behaviour.

Any

elliott_90 wrote: »

Pretty spot on. I manage my money well but wasn't sure about the pros/cons about using it in this way to gain a better credit history, which was my original plan.

So you're saying 'using it correctly' will indeed be good for my credit history?

Yes, that is exactly what I am saying.

elliott_90

Thanks for clearing that up guys, appreciated.