7 Reasons Your Credit Card May Have Been Declined
Having your credit card declined can be embarrassing, especially if you don’t have any other form of payment on hand.
There are seven reasons why your card may have been declined. Read on to learn more about each and what you can do about it.
1. You’ve Reached Your Credit Limit
The simplest explanation for having your credit card declined is that you simply don’t have enough available credit to make the purchase. This can especially be a problem if you have a low credit limit.
Some credit card issuers allow you to go over your credit limit but will charge a fee if you do it. As such, it’s always a good idea to stay well below your credit limit to avoid potential embarrassment or fees.
Using less of your available credit can also help improve your credit scores. Most experts recommend using less than 30% of your credit limit at any given time. But the lower, the better.
If your credit limit is just a few hundred dollars, however, that can be tough. Consider requesting a credit limit increase to give you some more breathing room. There’s no guarantee you’ll get what you want, but if your credit is better than when you first got the card, you could qualify for a higher limit.
Another reason you may be at your credit card limit is if you continuously have a high credit card balance. Taking steps to pay down credit card debt will benefit you in many ways—including higher credit scores and paying less money in interest.
2. Your Purchase Was Flagged as Fraud
Credit card fraud is the most common form of identity theft, and card issuers are always improving their ability to spot unauthorized charges.
Unfortunately, this sometimes backfires when you’re traveling internationally or using your card in a way you don’t normally use it.
If you have your credit card declined like this for a legitimate purchase, it can be frustrating. When it happens, you can call the number on the back of your card to clear things up. But if you’re overseas or otherwise don’t have access to call your credit card issuer, it’s essential to have a backup plan………Read More>>