I Received A Store Card I Didn’t Apply For. Should I Cancel It? | Bankrate (2024)

Key takeaways

  • If you received a store credit card you didn’t sign up for, that means someone else likely signed you up without your permission.
  • Issuing you a card without your permission violates the Truth in Lending Act and is considered fraud.
  • You should cancel the card immediately and take steps to protect your finances, such as having the card’s information removed from your credit reports and checking your other credit card accounts for signs of fraudulent activity.

Retailers typically offer sales and promotions during the holiday shopping season, and sales clerks will often try to sell you on their store cards as a way to finance those deals. But what if you’ve been signed up for a store card without your knowledge?

If you receive a store credit card that you didn’t apply for, you should start by taking a closer look at the card. Sometimes stores and issuers will send out promotional cards meant to look like real credit cards to entice consumers to sign up.

If you’re sure that the card is real, then you’re likely dealing with one of two scenarios: either someone — like maybe that pushy sales clerk — signed you up for a card without your permission, or someone signed up for a store credit card by stealing your identity. Either way, you’ll have to take steps to deal with the issue quickly, starting by understanding your rights as a consumer.

Truth in Lending Act protections

A retail store, or any card issuer, cannot issue you a card without your express permission, per the Truth in Lending Act (TILA). Issuers can only approve you for a card if you made an oral or written request or put in an application for the card. They can, however, issue you a card without your express permission when it comes time to renew your current card or if you need a substitute for an existing card.

Examples of store credit card fraud

There have been instances of the Consumer Financial Protection Bureau (CFPB) receiving complaints from consumers saying they received store cards in the mail even though they declined offers to open these accounts at the store or over the telephone.

This could happen if you shared personal information, including your Social Security number (SSN), with store personnel and they decided to sign you up for a card. They could have gotten this input from you for another reason and then used it to approve you for the card without your knowledge. This sort of misuse of information violates the TILA and is considered fraud.

But there’s also another reason you might’ve gotten a store credit card that doesn’t involve an employee. If someone stole your identity and is using it to open up credit accounts, you could’ve received a store credit card that the thief signed up for. Identity theft is a serious issue and also qualifies as fraud.

Keep in mind: If you’ve refused to sign up for a store credit card and a sales clerk still wants to know your SSN, that’s a red flag. Store employees don’t otherwise need that information, especially if they just want to sign you up for a loyalty card, which only provides you with special promotions. You can also sign up for a store credit card on your own if you don’t want to give your SSN in person.

What to do with the store credit card you didn’t sign up for

Now that you know what kinds of fraudulent situations you might be facing, you can deal with that unsolicited store credit card. Here are some general steps that can help:

1. Cancel the card

For starters, call up the issuer and ask to have your credit card canceled. If you’re not sure who the issuer is for the credit card, reach out to the store. Be careful not to give any personal information, such as your Social Security number, to anyone who picks up.

Take notes during your calls and ask to have proof of your cancellation request emailed to you. Ask the issuer not to report information about this account to the credit bureaus, either. You should also let them know that the card was issued to you fraudulently.

2. Get the inquiry and information removed from your credit reports

Because you didn’t sign up for the card, you want to make sure that it doesn’t harm your credit score or add fraudulent information to your credit report. The three credit bureaus — Equifax, Experian and TransUnion — allow consumers to file disputes and have incorrect information removed, but they each have a different process for doing so. Visit the websites of each credit bureau and go through the dispute process with each one if the card’s information has shown up on your report.

3. Report the fraud to the CFPB

The CFPB actively investigates issues with credit cards, including fraud. You can file a complaint on their website.

4. Check your credit report for other issues

Check your credit report periodically until you see that the fraudulent information has been removed. In addition to checking for that, you should also begin cleaning up your credit reports and auditing your own accounts. You’re legally entitled to free credit reports weekly from each of the three major credit bureaus, and you can get those reports by visiting the government-run website AnnualCreditReport.com.

When you get your credit reports, read over them carefully to make sure there isn’t any other incorrect information on them. As an added measure, you can also freeze your credit reports so that no one is allowed to look at them or request new lines of credit using your information. Credit monitoring services are another way to keep an eye on your reports. This is especially important if you were issued that store credit card due to an identity theft problem.

To be on the safe side, you should check out your other accounts and make sure no fraudulent transactions have occurred recently.

The bottom line

A store cannot issue you a card without your permission. However, store personnel have been known to be sneaky and could use input you provide without specifically informing you that you are applying for a store card. Identity thieves can also sign up for store credit cards using your information.

If this happens to you, cancel the card and have its information removed from your credit reports by filing disputes. If you’re a victim of identity theft, you should also take extra measures to make sure your finances are safe, such as freezing your credit reports and checking over your recent transactions. You can also file a complaint with the CFPB.

I Received A Store Card I Didn’t Apply For. Should I Cancel It? | Bankrate (2024)

FAQs

Should I cancel a store credit card I never use? ›

As you can see, closing a store credit card can affect several factors that are used to generate your credit score. Unless you have a good reason to close your store card, it may be helpful to keep the account open.

What to do if you get a credit card you didn't apply for? ›

If you get a credit card in the mail you didn't apply for, call the company right away. Tell them you don't want the card, and to cancel the account. Ask them not to report the account to the credit reporting agencies. If they've already done that, ask them to fix the mistake with the agencies.

Why did I receive a credit card without applying? ›

Occasionally, a bank may issue a credit card in error. In such a case, you should direct the bank to close the account and remove any record of the account from your credit history. Receiving an unsolicited card also could mean that a third party has applied for the card after stealing your identity.

Should I cancel a card I'm not using? ›

In general, keep unused credit cards open so you benefit from longer average credit history and lower credit utilization. Consider putting one small regular purchase on the card and paying it off automatically to keep the card active. At Experian, one of our priorities is consumer credit and finance education.

What happens if you get a store credit card and never use it? ›

If you open but never use a store credit card, nothing will most likely happen. However, the issuer could close your card due to inactivity. If you want to be proactive, you can call the phone number listed on the reverse of the card to cancel it yourself.

Does canceling a store credit card affect your credit score? ›

Yes, closing credit cards, including a store credit card, can hurt your credit score. This is due to the fact that your score considers a few key factors, including your credit mix, credit utilization ratio and credit age.

How do I check if someone opened a credit card in my name? ›

The best way to find out if someone has opened an account in your name is to pull your own credit reports to check. Note that you'll need to pull your credit reports from all three bureaus — Experian, Equifax and TransUnion — to check for fraud since each report may have different information and reporting.

Is it legal for a company to send you a credit card you did not request? ›

Under Regulation Z, which implements the Truth in Lending Act, it's illegal for a credit card company, store, or other entity to send you a credit card you didn't request. (12 C.F.R. § 226.12). So, most companies don't send out straightforward, unsolicited cards.

Why did I receive a debit card I didn't apply for? ›

If you receive a debit/credit card that you didn't apply for from a bank that you don't bank with, call the card's bank immediately. The bank will be able to clarify why you received the card or tell you if it's a scam. Do NOT use the contact numbers provided in the mail with the card.

Can I cancel a credit card I didn't use? ›

How do you cancel an unused credit card? The most important things to remember is to tell the card company, by calling them or putting it in writing, and make sure you've paid off your most recent statement or transferred it to another card first.

Is it bad to close a credit card with zero balance? ›

Your credit utilization ratio goes up

By closing a credit card account with zero balance, you're removing all of that card's available balance from the ratio, in turn, increasing your utilization percentage. The higher your balance-to-limit ratio, the more it can hurt your credit.

Will a credit card cancel itself if not used? ›

Credit card issuers can close your account due to what's known as "inactivity," meaning you haven't used the card in a certain amount of time — let's say a year or more — and the issuer now assumes you have no use for that account. But if even an account is closed, all is not lost.

Do store credit cards close after inactivity? ›

If you don't use a credit card for a year or more, the issuer may decide to close the account. In fact, inactivity is one of the most common reasons for account cancellations. When your account is idle, the card issuer makes no money from transaction fees paid by merchants or from interest if you carry a balance.

Is there a downside to getting store credit cards? ›

Store cards typically have very high interest rates that can cause you to quickly rack up debt if you carry a balance month to month. The Bloomingdale's credit card has one of the highest APRs for a store card at 26.99% variable (see rates and fees).

Can I cancel a store credit card that I just opened? ›

If your application gets approved and your account is opened before you can contact the card issuer, then the only way to close it is to cancel the account like you would any other credit card.

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