The Most Common Reasons For Credit Card Declines
What Is A Credit Card Decline?
This is a question many consumers have had to ask themselves. The first thing you should know is that a credit card decline can be caused for a number of reasons such as poor credit, limiting the amount of credit extended on one card, or even by something as simple as mistyping your account number.
Deciding to apply for a credit card does not need to be an overwhelming task; there are already many factors that go into deciding which credit card you should choose, such as fees and interest rates. However, a credit card decline could force a consumer to pause before applying for another card.
A credit card decline can make a person worry about their current financial situation– the reasons behind a declined application could be misconstrued to mean that there are significant issues when there may not even be any at all.
It is important to know that just because an application for a credit card is declined does not mean you are not approved for credit. A person who has been declined or, even worse, does not receive a response to an application in time may enter into the world of bad credit and poor borrowing habits that can lead to financial troubles later on.
Why Do Credit Cards Get Decline?
There are several reasons why a credit card may get declined.
If the issuer has limited your available credit, you will naturally be unable to use up all your available credit on any given purchase. Even if you do not go over your limit, you may still find that the transaction is declined because it does not meet the requirements, even if the credit limit is within your budget.
Secondly, a consumer may also find that their card gets declined if they typed in their account number incorrectly when trying to make a purchase. If you use your credit card to make safe and secure purchases online, you must double-check all of your information before submitting any cards for payment.
Thirdly, if an incorrect zip code was entered when making a purchase, this could also result in a declined transaction. Not only can your zip code be misplaced (resulting in the wrong state being selected), but it may also be misspelled or completely wrong. This can become confusing when filling out information online, so it is important to read everything carefully before you sign off to ensure that no errors have been made.
Some credit card issuers will decline transactions if there is a lack of available credit on the account, but this is not as common as other reasons, such as an incorrect zip code or PIN.
You may also find that your card has been declined because your account has limited credit, meaning that your purchase will need to be approved by the issuer first. This can take a few seconds, or it may take up to 24 hours, depending on how quickly an approval is received from the payment processor.
Of course, there’s also the distinct possibility that your card has been declined because of poor credit as well. If you have not managed your finances well and have a bad credit score, this can be enough to turn away even the most lenient of credit card issuers. Even if you are accepted by one company, another issuer may decline your application because they look at all aspects of your financial situation before giving out any cards.
How To Avoid Having Your Card Declined?
To ensure that your card does not get declined, it is important to take some preventative measures:
One of the most basic and effective ways to avoid having credit cards declined is by ensuring that you know exactly how much money you have available to spend. If your issuer has limited the amount of available credit, then it may be in your best interest to either ask for a credit limit increase or, if you are unable to do that, to ensure that there isn’t a large purchase made which can use up all of the credit.
If you have a limited amount of credit, it is also important not to set the card’s spending limit too high so that you do not run the risk of running out of credit before you run out of money.
Moreover, you need to check that your bank account is fully funded to have enough money to pay for anything that should appear on this card’s statement. Use a different method for paying if there isn’t enough money in the account when making purchases online.
Similarly, you may also want to check that your card’s PIN is correct when making purchases online so that there are no problems there.
In addition, you may also want to ensure that the zip code has been correctly typed in when filling out payments online so as not to end up with a declined transaction accidentally. In case of any other information being incorrect, the transaction will still be declined.
Finally, check that you have not entered a wrong card number or an incorrect expiry date, although these should not cause automatic declines like other issues.
If you have all of this information correct and your issuer still declined your transaction, then it may be necessary to contact your credit card company for further assistance.
If your information is correct and your transaction still gets declined, then it may be necessary to contact your credit card company for assistance. If not, then take preventative measures so that the problem does not happen again in the future. Have you been looking for more business opportunities? Well, PSP.Academy is the best place to find it! We have a team of experts who can help with marketing and advertising your company in order to get those new clients coming through the door –Register now to eminently propel and drive your prospect generation and conversion rates so they’ll be sky high before long!