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The Corliss Group Review about Credit Card Rejection9 Years AgoYou've
spent months scouring the Internet for the perfect washer and dryer combo to
complement your newly renovated laundry room. Finally, you've located what
appears to be the perfect match at the right price.
Suddenly
the deal is off. Your credit
card won't go through, and you have no other immediate form of payment to
use before the sale ends.
It's
happened to many of us: You go to close the sale or pay for a meal and are
told: "This card's been denied. Do you have another form of payment?"
Don't
think that this is always a result of sheer financial irresponsibility.
Here
are factors that could trigger a credit
card rejection, along with tips to remedy the problem.
1. Your card is maxed out
Going
over the limit can have negative consequences, both in the form of fees and
denials.
And it
can also damage your credit because of the utilization factor, which accounts
for 30 percent of your FICO score.
2. Fraudulent purchases
Whether
suspected or reported, they both prompt freezes. They could also result in the
closure of the current account, followed by the issuance of a new card. To get
to the bottom of it, promptly contact your credit card issuer to validate the
purchases.
3. Authorized user dropped from the account
If you
are an authorized user on a credit card account, and the person whose name is
on the card revokes your rights or completely pulls the plug, you'll be cut
off. You can also lose temporary access if the card has been reported as lost
or stolen.
4. Transactions holds
Some
transactions, such as lodging, rental car or other travel reservations, could
mandate a hold be placed on your account. Assuming you are cutting it close to
the limit, your credit card could be rejected at a point of sale until you've
paid the final bill and the holds are lifted.
5. Foreign/international transactions
Foreign
transactions can raise credit card companies' suspicions about fraudulent
purchases. In fact, it doesn't matter if you're in another country or here in
the U.S. and making a foreign purchase online.
6. Unusual purchases
If you
make a purchase that seems odd based on your prior behavior, it may be flagged
by the credit card company.
7. Delinquent accounts
Ignore
the balance due long enough and the magic plastic may suddenly lose all of its
powers; it just depends on the issuer and your history with the company.
8. You're past the expiration date
If you
didn't get a new card in the mail before your card's expiration date, they may
not want you as a customer anymore. But don't just ignore it: You could be a
victim of mail fraud.
9. Transposed numbers
Sometimes
you're asked to provide a ZIP code or the security code on the back of the card
to confirm your identity at the point of sale. Mix up any of the digits and a
rejection will follow. You can always retry, but enough errors will prompt a
lockout until you’ve contacted the card company.
10. A closed account
The
credit card company can close your account for all sorts of reasons, and
doesn't have to give you advance notice. CreditCards.com said:
Even
if you're not in default, an issuer can boot you at any time. The most common
reason is that you're not using the account often enough. |