What if you find out that your credit card is getting declined? I know it’s pretty uncomfortable and shows that things aren’t OK. We all know a credit card is a great tool that provides so much help in daily life to transfer and handle money. It has been easier to access your finances more smoothly in today’s technological world. But things don’t remain perfect all time, and it happens that transactions get decline. So, to solve this, we need to understand why it happens. Thus, we start with this:
What is meant by declined or flagged credit cards?
By the term DECLINED OR FLAGGED credit card, we mean something that goes wrong while processing a transaction. For instance, if you are using the card and it doesn’t approve the transaction, your transaction is declined. Sometimes, it happens because you aren’t entering the correct information like passcode or username. We also need to understand that sometimes credit cards decline to save us from fraudulent transactions. So, if the card is flagged, it will decline suspicious transactions. But if this isn’t the issue, then it means the root problem is different.
What should you do instantly?
Suppose you are standing in the line of a grocery store and your credit card declines. We know it’s not very comfortable, but it isn’t much you can do at that time. Here are steps you can instantly take at that time:
- Check you entered the correct information like billing information, security code & expiration date, etc.
- You can dial the toll-free number of credit card to know what’s wrong
Sometimes, if the issue is minor, the card issuer can virtually solve that. But it’s perfect if you are carrying more than one card at a time. For instance, you can help with cash, debit card, or another credit card in a situation like this.
Why is my credit card getting declined? Top five reasons:
The provider asks for personal information like occupation, salary proof, address, and ZIP, etc. If the service provider is asking for a pay stub, then you can take the help of a paystub generator to have one. But it’s frustrating if your card is getting declined repeatedly, but you can’t understand the root cause. So, here are possible common reasons why your card is getting denied.
You reached your credit limit:
If your credit card has reached the limit, this could be one of the reasons your transactions are declining. In credit language, we refer to it as credit utilization rate. But some credit card companies give you margin and don’t decline your transaction at the store. Thus, they charge an extra fee to do this for you. The risk of exceeding your credit limit is higher if you are already struggling with a low credit limit.
- Solution: Always remember that credit utilization plays a vital role in deciding credit rating. So, keep the usage under 30% of your available limit. If the utilization rate is up to 30%, your credit score will suffer.
Your purchase FLAGGED as fraud:
Fraud is the most common thing in credit; that’s why it’s a great responsibility of credit providers to keep customers safe. But we sometimes know a legitimate purchase marked as fraud could be annoying at that moment. The real aim is to keep your money and personal information safe. So, if your transaction is getting declined, it’s because the provider is taking it as fraud or scam.
- Solution: If something like this is happening, call the helpline, and a virtual person could lift the freeze at the spot. Moreover, if you are traveling out of the country, inform the card issuer ahead of time. In this way, they will know it’s you, and the card will not get declined.
You aren’t paying back:
Credit card companies decline the transactions when you don’t make the last payment. Sometimes, you don’t realize that you are running behind until the card is declined. So, in this situation, you can call the company, and they will explain how much you need to pay to restore the card.
- Solution: If something like this happens, you need to organize your payment system. If you are paying back late, you will have to suffer a late fee. But you can take the help of a paystub generator to track the payments that you need to make from your monthly income. If you don’t have high-income skills, you can talk to the service provider, and they may offer you reasonable terms.
The credit card has expired:
Usually, credit card companies send a new one before expiring the previous one. But sometimes it doesn’t happen because you change the address. So, in this case, if you are using an old card, then your transaction will get declined.
- Solution: If your card has been stolen, expired, or misplaced, contact your company to issue a new one. The company will tell you the time frame to issue a new one in response. But while filling out the details, don’t forget to update your address and contact information.
You are making large purchases:
Credit Card Companies may flag your account if you are making large purchases. In simple words, if you are doing something different from the regular activity, then it may suspend your transaction.
- Solution: In this situation, you should contact the company and inform them about spending changes. If you want to make large purchases regularly, tell credit card companies to increase the spending limit. In this way, you don’t have to deal with card declination. Furthermore, it also helps to save your credit card rating.
Tips to save credit cards from declination:
The above discussion proves that credit card companies decline transactions for several reasons. So, if you want to avoid this frustration, then adopt these habits:
- Sign up email to get regular alerts of your credit card
- Take help of autopay to make on-time payments
- Pay off credit card balance each month
- Always stay below your credit limit
- Keep in touch with the expiration dates of your card
Apart from this, if you are traveling, then notice your service provider in advance. It will make it easier to purchase while you are traveling inside or outside of the country. However, by adopting these habits, you can’t guarantee that your card will decline, but you can indeed reduce the chances. So, take these small steps and manage your account actively without any issue.