You go to pay for a few snacks at the convenience store with your credit card, and the machine flashes “declined.” That’s embarrassing, not to mention confusing.
You think you have credit available, so what gives? Your card may be declined for a variety of reasons. Let’s look at five of them below.
1. You Made an Unusual Purchase
Your credit card company monitors your account, using defensive tools to track purchases and establish a financial profile.
Let’s say you live in Brooklyn and never leave your Bed Stuy neighborhood. If you suddenly buy horse feed in Argentina, your credit card company becomes suspicious. Even if you make this purchase legitimately, it goes against your pattern of spending and your card company may put your account on hold to protect you from what they believe is fraud.
2. You Haven’t Paid Your Bill
A credit card company may cut you off if you fail to cover your minimum payment. You must cover your minimum by the due date to keep your account in good standing.
3. A Temporary Hold Ties up Your Limit
Is a genuine trip to Argentina on the books? You have to reserve hotel rooms and rental cars, many of which put a hold on your credit card during the booking process.
This routine charge is a security deposit to cover damages. Unfortunately, these companies will only release the hold after you check out or return your rental. In the meantime, these holds will use up your available credit.
4. You Shared the Wrong Info
Your next online purchase might not go through if you input the wrong information at checkout. The online retailer checks over the info you share at checkout to confirm you have a valid account; any errors here will flag their system and reject your purchase.
5. You Maxed Your Card
Sometimes, the most obvious reason is the right reason. A declined card happens when you max out your account, and you have no more credit available for the purchase.
How to Handle a Declined Card in an Emergency
Declined at the convenience store over a few snacks isn’t a big deal. You can go home and find out why you were denied without worrying about junk food.
But what happens if you use your card in an emergency? Plenty of people use credit cards as a safety net when they need more cash to handle unexpected expenses and repairs.
Even if the credit card company suspends your card erroneously, it may take several days to sort out this mistake in the middle of an emergency. You need an agile, flexible option available in the meantime.
If you need fast cash, an online personal loan can stand in for your credit card. You can find real online loan companies that provide online installment loans or lines of credit that perform the same function as your emergency credit card. In many cases, legitimate online loan companies expedite the borrowing process by providing quick applications and depositing your loans directly into your account.
The Takeaway:
Sometimes, your card gets declined over a silly oversight or mistake. But sometimes, it’s a red flag; a fraudster has used your account, or you don’t have any more room left on your card. In emergencies, you have online loans that can fill in. Whatever the cause, call your card provider and find out why you got this message!