credit card

If you have ever experienced a credit card decline, it can be an embarrassing moment for everyone involved. After the moment passes, have you ever stopped to think of the reasons why your card may have been declined? There are a few key reasons your credit card might get rejected.

Pushed it to the limit

Having access to a modest to high credit card limit is convenient when you don’t have cash on hand. If you use your card to make too many transactions in one day, your card might be declined because of temporary holds. Even if there are no charges on your account just yet, too much use can easily result in a rejected card.

Strange behavior

The company issuing your credit card wants to protect your interest and theirs, primarily because of identity theft and fraud. If the way you use your card differs from your usual spending habits, your card may be declined if a transaction seems out of character. It may be inconvenient, but it’s for your protection in case your card falls into the wrong hands.

Missed it by that much

It can be challenging remembering all of the information attached to a credit card, especially if you have recently moved or are traveling. If you have punched in the wrong verification number, or you entered the zip code from an address that is not attached to your card, you can expect a decline.

Payment system problems

Many credit card companies and banks are offering customers new credit cards with an embedded computer chip for added security. If you are traveling overseas or shopping with certain retailers, they may not have a system to complete your transaction with the older credit cards with only a magnetic strip.

Change of heart

It is so vital to monitor your creditworthiness, in case your credit company wants to check up on your activity and change the terms of the agreement. Be mindful if you carry multiple credit cards with the same company and default on one of the accounts. Your credit card limit can be lowered following a notification, which can increase the chance of a decline if you are unaware.