It is really difficult to say everything one needs to know about credit cards in one article. How to choose a credit card provider; how to use credit cards in the best way; how many credit cards you should have- there is just too much to be said. The clamour for credit cards has just taken the world with a storm. You have a credit that you are sure is valid, then suddenly you are denied credit, and you simply can’t understand why. Well, perhaps one can try to explain the possible reasons for this. Your Personal Financial Mentor explains the possible reasons why your credit card can be declined.

One rather obvious reason why your credit card may be decline is lack of funds on your card. Well, the truth is that there are times when we miscalculate our balances, especially when we have several cards at the same time, and we wrongly think that one card has some balance when in fact it has no balance at all. That is why it is important to keep as few cards as possible with you, and even you use these cards, you must always try to keep a record of your spending in order not to be disappointed.

Another reason is impersonation. If your provider suspects that at any one time your card or your identity has been stolen, or there are signs that your security has been compromised one way or the other, the first step they take is to decline the card. They will then inform you of their suspicions and advice you on the best step you can take too. Identity theft has become quite common nowadays and when your card is declined because of this, then it is usually for your own protection.

All financial institutions have their own elaborate security apparatus which can detect the slightest sign of fraud. For example, if you have made too many transactions with that card in one day, then it might trigger suspicion, forcing them to decline your card immediately. It is not clear how many transactions are ‘too many’, because every provider has their own standards.

When your credit card is declined, the first thing to do would be to contact your providers immediately so that they can advise you accordingly. You might learn that it is probably no big deal at all.

Categories: Credit Cards