10 questions to ask before getting a credit card that is securedAugust 28, 2017
<img title="You are making an international purchase" class="mobileFullWidth mar10 marTB" border="0" alt="You are making an international purchase Maskot/Getty Images” src=”http://www.brimg.net/images/slideshows/credit-cards/2017/reasons-credit-card-declined/2-international-purchase.jpg” />
You are making an purchase
You need to make sure your credit company is in on the programs, if you choose to book a deal to Europe. Otherwise, any purchases could suspend your card.
“We recommend that customers alert us of their plans to travel globally, and we will take that into account when monitoring for potential fraud,” says Betty Riess, a spokeswoman for Bank of America.
An online purchase from a foreign country could raise an alert and stall your credit card, says Linda Sherry, director of priorities at Consumer Action.
Let’s say you are sitting browsing the internet for a gift. You discover the thing — a designer scarf. But your activity is going to be registered as a purchase abroad if that merchant is based in a foreign country, and your credit card may not work.
Credit card businesses track their customers’ card activity. A quick call to your issuer, alerting it to international purchases or traveling, can clear the air.
<img title="Your purchase triggered fraud protection" class="mobileFullWidth mar10 marTB" border="0" alt="Your purchase triggered fraud protection Adrian Weinbrecht/Getty Images” src=”http://www.brimg.net/images/slideshows/credit-cards/2017/reasons-credit-card-declined/3-fraud-protection.jpg” />
Adrian Weinbrecht/Getty Images
Your purchase triggered fraud protection
Besides international purchases, certain “suspicious” activity can lock down your credit card. Purchasing items like large electronics or jewelry can raise an alert.
“Credit card issuers lose millions to fraud each year, so they are very sensitive when your spending pattern varies,” says John Ulzheimer, a nationally recognized credit expert.
That is not to say these indulgences are off-limits to your credit card. You notify it of your purchase and can still splurge on that diamond necklace call your credit card company.
Compare rewards credit cards and get rewarded for your purchases.
<img title="You've reached your credit limit" class="mobileFullWidth mar10 marTB" border="0" alt="You've reached your credit limit iJeab/@Shutterstock.com” src=”http://www.brimg.net/images/slideshows/credit-cards/2017/reasons-credit-card-declined/reasons-declined-4-limit.jpg” width=”573″ height=”322″ />
You’ve reached your credit limit
Your credit limit covers your spending on your credit card. You are cut off once you reach it.
Track your spending and try capping it to below 30 percent of your credit limit to ensure you don’t exceed it. Repeatedly going up to your credit limit could hurt your credit score. You can check your credit report and score for free at myBankrate.
To keep your credit card in play once you’ve reached the limit, pay down your balance or request an increase to your credit limit.
Some credit cards have per-day spending limits. To avoid freezes to your credit card, find out your maximum, and maintain your purchases in line.
Consolidate your credit card debt with a personal loan.
<img title="Info you entered doesn't match your records" class="mobileFullWidth mar10 marTB" border="0" alt="Info you entered doesn't match your records Stock Rocket/Shutterstock. com” src=”http://www.brimg.net/images/slideshows/credit-cards/2017/reasons-credit-card-declined/5-records.jpg” />
Stock Rocket/Shutterstock. com
Info you entered doesn’t match records
In your haste to buy that dream espresso machine on the internet, you may have mistyped your credit card number, expiration date or safety code. Or maybe you used an outdated billing address, which could cause a. If you are making an online purchase, give your information a second glance that is fast.
If you make this error once, it won’t suspend your accounts. “It will just restrict this purchase,” says Sherry. But if you mess up your entry numerous times, “it might get rejected and go back to the credit card company, and it’ll freeze the accounts.” This is all a part of how credit card businesses aim to stop fraud.
Sometimes the information does not match because you’ve changed addresses. Telephone your credit card company to confirm your information. A hiccup can be caused by A mismatch . Whenever there’s a shift avoid future inconveniences by upgrading your profile with your new information.
<img title="You've missed credit card payments" class="mobileFullWidth mar10 marTB" border="0" alt="You've missed credit card payments Mareesw/Getty Images” src=”http://www.brimg.net/images/slideshows/credit-cards/2017/reasons-credit-card-declined/reasons-declined-6-bill.jpg” width=”573″ height=”322″ />
You’ve missed credit card payments
This is an obvious one, before your card will work 33, but if you’ve been too busy to realize you’ve fallen behind on payments, you must get caught up.
The number of cycles you can go due before your issuer shuts you down varies by your history and by credit card. As a general rule of thumb, the spottier your history, the shorter your leash.
“If you’ve got a pretty good history with the issuer, they may actually allow you to go a complete cycle past due before they shut you down,” says Ulzheimer. “If you’ve got a spotty history — meaning that you miss payments all the time — you will already be on a short leash, and they won’t allow you to go past one cycle.”
A credit card is one tool that can help you build your credit history. Compare credit cards for bad credit.
<img title="Your credit report has taken a hit" class="mobileFullWidth mar10 marTB" border="0" alt="Your credit report has taken a hit Michael Mahovlich/Getty Images” src=”http://www.brimg.net/images/slideshows/credit-cards/2017/reasons-credit-card-declined/7-credit-report.jpg” />
Michael Mahovlich/Getty Images
Your credit report has taken a hit
Superior standing with one credit card is not enough. On your credit to see how you are currently performing in other parts of your credit life, issuers check in behind the scenes, says Ulzheimer.
“They’re taking a look at your credit report to see if there is anything on the report that they believe makes you an unacceptable credit risk,” he says.
So when you’re current on a single card payments, your standing with that card could suffer if a collection hits your credit report or you default on another credit card. You can check your credit report today at myBankrate.
While the Credit Card Act of 2009 placed some limits on how credit card companies can react to changes in your credit report, they can still pull your information from credit agencies as often as they like, and based on what they see, they could “determine if they still need to do business with you under those same terms” you signed up with, says Ulzheimer.
It must provide a 45-day notice if you are a customer and your card issuer wants to make changes such as your interest rate.
“If your credit history has declined, then your (credit) limit may be reduced,” says Nessa Feddis, senior vice president at the American Bankers Association.
<img title="Your card has expired" class="mobileFullWidth mar10 marTB" border="0" alt="Your card has expired Hamik/Shutterstock. com” src=”http://www.brimg.net/images/slideshows/credit-cards/2017/reasons-credit-card-declined/8-expired.jpg” />
Your card has expired
When life gets hectic, you may forget to check the expiration date. Or maybe you overlooked the credit card you need to get through.
Watch out for your new credit card about three to six months in advance of your expiration date by then, the issuer has made the decision of whether or not it needs to renew your account, says Ulzheimer.
If you can not locate your new card, call your credit card company to be sure nobody is currently racking up fraudulent charges.
If your credit card company decided not to issue you a new card, you will get a letter that explains your options for paying off your remaining balance.
<img title="You forget to pay attention on a trip" class="mobileFullWidth mar10 marTB" border="0" alt="You forget to pay attention on a trip Andresr/Shutterstock. com” src=”http://www.brimg.net/images/slideshows/credit-cards/2017/reasons-credit-card-declined/9-pay-attention.jpg” />
You forget to pay attention
Have you noticed there is a hold on your account for an amount larger than what it cost to fill up and ever paid at the pump with a credit card for gas? That reminder should be a red flag for your wallet.
If you’ve got a grip on your account, your card can be diminished. “This often happens when people are on holiday and they have done two things within minutes of each other: They have gotten a rental car … and then they have just checked into a hotel,” says Melinda Opperman, senior vice president of community outreach and industry relations at Springboard Nonprofit Consumer Credit Management. Both of these activities put a hold on a part of the limit of a card.
Using and traveling just one card for your entire vacation can be problematic, especially if you could easily reach your limit. One or retains or two purchases, and your card will be declined.
“A lot of individuals aren’t conscious of that, and they are caught off guard,” says Opperman. “It can take several days for the hold to be released,” which is why Opperman advises travelers to take two credit cards. Switch off between them for rental car check-ins, hotels, dining and other expenses while you’re away.
The right credit card can provide perks each time you travel. Compare the best airline and travel credit cards today.
<img title="Another user deactivated your card" class="mobileFullWidth mar10 marTB" border="0" alt="Another user deactivated your card Levent Konuk/Shutterstock. com” src=”http://www.brimg.net/images/slideshows/credit-cards/2017/reasons-credit-card-declined/10-another-user.jpg” />
Levent Konuk/Shutterstock. com
Another user deactivated your card
If changes were made by the primary cardholder with no authorized user’s knowledge to the accounts, the user’s card could be diminished. The cardholder may have reported that his card lost or stolen, in which case the card issuer would normally deactivate all cards under that account while a new one is sent by it, says Opperman.
Passing along information about changes to your card status is essential when discussing a charge card especially if you’re the primary cardholder making. Opperman says that primary cardholders don’t relay decisions.
“Sometimes these licensed users will try to use their card, and then they’ll find out, ‘Oh my gosh, the cardholder removed me, or the card was deactivated and they did not inform me.'” Like in any relationship, communication is key.