29 JUNE, 2022

A credit card is a powerful instrument that has been around for a long time.

It is quite beneficial in today’s society because it allows a person to satisfy their needs and financial goals.

New credit card applications are increasing due to increased digitalisation, and banks are attracting new consumers by giving appealing incentives such as cashback, rewards, and discount coupons.

Many people have numerous credit cards, particularly co-branded cards that offer points on each purchase.

Credit cards are also useful for purchasing online or from stores without cash or checks.

They can pay for things with just a few clicks of one’s mouse, saving time and money!

A credit card can also be used to pay bills, such as rent, utility bills, and other monthly expenses.

Their credit score can help determine whether they get approved for loans or mortgages in the future, saving them money on interest payments down the road.

If you have just received a new credit card and are unsure how to activate it, or if your card has been blocked and you are unsure how to unblock it, do not panic; this article is here to help.

 

What are the steps to activate a new credit card?

If you have a new credit card, you can avail yourself of any of the following options to activate it.

 

1. Online through internet banking

To activate credit cards online through internet banking, follow the below steps:

  1. First, the cardholder needs to visit the bank’s website.
  2. Now, the cardholder has to log in to its internet banking account.
  3. Click ‘Card Activation’ on the home page.
  4. After that, you must input your credit card number, expiration date, and date of birth.
  5. Once the details are entered, press ‘Submit.’
  6. The cardholder must enter the ATM PIN and click on ‘Submit.’
  7. The mobile number will receive an OTP; enter the OTP and proceed.

In this way, the credit card will be activated.

 

2. Online through the mobile app

Follow the steps below to activate a new credit card online using the mobile app:

  1. First, cardholders must download the bank’s mobile app and log in.
  2. Now, they must select the ‘activate a card’ option.
  3. After that, you must input your credit card number, expiration date, and date of birth.
  4. Now, choose ‘Send OTP’. Once the OTP is received on the mobile, enter it and submit it.
  5. Make a username and password for yourself.
  6. Click on ‘ok’, and your card will be activated.

 

3. Customer support service

If cardholders do not wish to activate their card through online means, they can contact the customer support service.

Cardholders can quickly activate their credit card by contacting the bank’s customer service department.

When they contact the bank’s customer service department, they will walk them through the process of activating their credit card.

 

4. Offline

Further, cardholders can also activate their credit cards by physically visiting the bank’s branch.

 

What are the reasons for the blocking of credit cards?

There might be numerous reasons to block your credit card; a few of them are:

 

1. Theft or loss

The most common reason why a credit card must be blocked is when it has been lost or stolen.

Further, if the bank detects any inappropriate actions on the credit card, it may block it to preserve the safety and security of the holder’s finances.

 

2. Over Utilization of the credit card limit

When a cardholder purchases a credit card, their lender will decide on a spending limit for them.

However, it is recommended to keep a healthy credit score and not spend more than the credit limit.

The bank may block the credit card if the cardholders use the maximum limit.

 

3. Irregular payments

A person’s credit card may be blocked if their bank finds that they have been not paying their credit bills timely.

 

4. KYC documents not received

According to the RBI, all cards must adhere to KYC requirements and produce the necessary documentation regularly.

The credit card will be blocked if one does not follow these instructions.

 

How to block a credit card?

If a person’s credit card is stolen or lost, they first need to block their credit card. The following are three ways through which it can be done:

 

1. Online

To block the card through online means, follow the below steps:

  1. The cardholders must first log in to the bank’s website or mobile app.
  2. Select ‘Report a lost/stolen credit card’ from the ‘Requests’ option.
  3. Now, choose ‘block credit card’.
  4. The last step is to submit, and the card will be blocked.

 

2. Offline

Cardholders can also opt for offline mode to block their credit card. They must go to the bank’s branch, complete a form, and submit it to the bank personnel.

Soon after that, the card will be blocked.

 

3. Helpdesk

A cardholder can quickly block its credit card by connecting with the bank’s customer service department.

 

How to unblock a credit card if it is blocked?

A cardholder can unblock its credit card offline, online, or through customer service support.

 

1. Online

To unblock the credit card online, follow the below steps:

  1. The cardholders must first log in to the bank’s internet banking or mobile app.
  2. Go to the ‘Requests’ option and apply for a reissue of a card.
  3. Now, authenticate through password or OTP.
  4. Once you submit the request, the bank officials will process it and send a new credit card.

2. Offline

Cardholders can visit the branch, fill out a form, and submit it to the bank officials. Soon after that, the card will be unblocked.

 

3. Helpdesk

A cardholder can quickly unblock its credit card by connecting with the bank’s customer service department.

 

Conclusion

Credit cards are a very useful tool for modern-day life. It can be used for shopping and paying bills.

With these cards, people can buy things from online stores and pay them off at their convenience.

However, there are some risks attached to using credit cards as well.

One of them is that if you do not pay off your bill on time, then you will end up paying late fees, which can be expensive and high compared to the actual value of your purchase.

So, this is why it is essential for all people who use these cards to pay off their bills on time so that they do not have any problems later on in their lives.

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Disclaimer: This Article is for information purpose only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. Bank make no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Newsletter. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from Kotak. Kotak, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein.

Disclaimer: This Article is for information purposes only. The views expressed in this Article do not necessarily constitute the views of Kotak Mahindra Bank Ltd. (“Bank”) or its employees. The Bank makes no warranty of any kind with respect to the completeness or accuracy of the material and articles contained in this Article. The information contained in this Article is sourced from empaneled external experts for the benefit of the customers and it does not constitute legal advice from the Bank. The Bank, its directors, employees and the contributors shall not be responsible or liable for any damage or loss resulting from or arising due to reliance on or use of any information contained herein. Tax laws are subject to amendment from time to time. The above information is for general understanding and reference. This is not legal advice or tax advice, and users are advised to consult their tax advisors before making any decision or taking any action.