A man in a red apron is standing with a blue credit card that was denied

Reasons Why Your Credit Card Can Get Declined

Milad Hassibi May 21, 2018

Credit cards have transformed the world, allowing buyers and sellers to pay for and collect money for various products and services. Sadly, with this convenience can come some hassle. Credit cards can be declined for a multitude of reasons, but with some knowledge and preparation, you can help ensure that you have a smooth credit card experience.

Fraud Protections

Almost all credit cards with some degree of fraud protection. When you make large purchases of A man holding a credit card that is blue has a fraud alert go off in red“risky” items such as electronics and jewelry, your credit card may lock you out and prevent the purchase.

If you wish to make a large purchase on a credit card, call your credit card company in advance.

International Buying

When traveling to foreign countries, its best to let your credit card companies know of that as well.

For many credit card companies, if a transaction is made with your card overseas, it can trigger a full account suspension based on suspicions of fraud. Again, you can prevent your purchases from being blocked by contacting your lender.

Delinquent Payments

Providers give our credit cards and lines of credit in hopes that they will repay the borrowed amount with added interest. If you have fallen behind on paying your credit card bills, your issuer may place a freeze on your credit cards.

Typically, you will be required to repay your debt before you can use your credit card again. Be certain that you are on top of your monthly credit card payments.

Credit Limit

A credit limit is the amount of money that your lender or financial institution will allow you to have on your credit card. Ideally, you want to use only 30% of your total credit limit to avoid negatively impacting your credit score. If your card is being denied due to your credit limit, you can either pay off the balance on the card or call and ask for an increase in your limit.

Credit Reports

A credit report is what the 3 credit bureaus use to determine your credit score. If a negative mark like a delinquency, unpaid balance, or a series of hard credit checks appear on your reports, it can lower your lender’s confidence in your ability to repay them. Thus, your credit cards may have their credit limit lowered.

Final Note

All in all, there are a multitude of reasons why your credit card was declined. By being a prepared consumer, you can prevent your card from getting declined during an important moment.

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