No one likes to decline credit cards. This is an embarrassing incident, but even worse, if you are a victim of identity theft, it may be just the beginning of a headache. You may be wondering how it happened or what to do next. Well, take a deep breath and follow the steps outlined below to better understand the situation and prevent it from happening again.
1. Decide on your current purchase method
Unless you are trying to buy an item, you may not even realize that there are any problems at all. The first thing you need to do is determine how you want to process the transaction so that you can leave the store and start an investigation. If you think this is just a blessing, you can try to run the card again, but if the card doesn't work, you must skip the purchase or pay by other means.
If your purchase is not a necessity, or if you believe your credit card has been exceeded and your credit limit has been declined, it is best to put it back on the shelf and wait until the problem is resolved before buying. You can also choose to pay with another credit card or cash.
2. Check your credit card statement
View your credit card statement for any clues as to why your credit card was declined. If you have a bill, you can check it out, but your online account is a better choice because it contains the latest list of transactions.
First, review your available credit. As long as the card runs out, the answer may be simple. Second, review the transaction history and make sure that all purchases listed belong to you. This is especially important if your credit card balance looks higher than expected. You may be a victim of identity theft. If a thief collects a lot of money in your name, the card issuer will find that your card has been used up, even if you haven't run out.
Your credit card statement may contain the answer to the cause of the credit card decline, but if you ca n’t find your credit card there, contact your card issuer for some answers.
3. If fraudulent charges are found, cancel the card.
If a credit card fraud charge is found to be rejected, notify the card issuer immediately. The card-issuing bank may work with you to process all the charges on your previous credit card statement to determine which ones were purchased legally and which were fraudulent. They will then remove the fraudulent charge from your account and you will not be held liable. The card issuer will cancel your existing credit card and email you a new credit card with the new number.
At the same time, you will have to rely on other payment methods to make the purchase. You may also want to extract a credit report to check whether the identity thief has not accessed more accounts on your behalf or opened a new fraudulent account. If this happens, notify the credit bureau and financial institution associated with the forged account. You may also want to consider placing fraud alerts on your account to make it more difficult for identity thieves to open new accounts on your behalf in the future.
4. If you exceed your credit limit, create a repayment plan.
If your credit card is declined because it exceeds your credit limit, it may take longer to correct the situation. You must create a debt service plan to release more available credit. This can also help you save interest.
There are several ways to resolve this issue. You can transfer the balance to a card with an annual interest rate of 0% to temporarily stop the growth of debt and then make regular monthly payments until it is paid off. You can also try to pay off with your existing card, but this can be more challenging as the amount you owe will continue to accrue interest. Minimize your disposable expenses, avoid making new purchases on the card, and use the remaining cash every month to pay off your debt. Apply for a personal loan to pay off your credit card balance, and if you want a predictable monthly payment, you can choose another option.
Credit card declines are annoying, but if you follow the steps above, you can hope to quickly find the source of the problem and prevent it from happening again. If you have any questions about why your card was declined, please feel free to contact your card issuer for more information.
News Reference: https://www.nasdaq.com/articles/4-steps-to-take-immediately-if-your-credit-card-is-declined-2020-03-21