reasons why a credit card would be declined

7 Reasons Why a Credit Card Would Be Declined

Whenever your credit card transactions fail, embarrassment ensues. It's hardly pleasant, but we've all been there.

Knowing the reasons why a credit card would be declined is the first step toward preventing the frustrating occurrence. Typically, declined transactions aren't anything to worry about. It may just be caused by traveling abroad or inputting incorrect payment details. Whatever it is, you can usually solve it without much hassle.

In this article, we will explore the top seven reasons your credit card would be declined and how to pay for emergencies if transactions keep failing. 

7 Reasons Why Your Credit Card Is Declined 

1. You've Traveled Abroad

Using your credit abroad, regardless of how small the purchase, can cause an issue with your at-home bank, sparking the decline. 

Plus, logging high volumes of credit card activity in various locations (whether domestic or internationally) raises red flags with your provider. Why? Because it looks as though your card was stolen. Therefore, your issuer may lock your account to prevent outgoing transactions and keep your information safe. 

2. You're Trying To Make A Large Purchase

If you're splurging or using your credit card to make a bigger purchase, your provider will probably flag your account. Like travel, any card activity outside your general spending habits may initiate fraud protection, freezing your account and declining your card.

When you're planning a big spend, notify your credit card issuer beforehand. This will prevent account locks and keep transactions flowing.

3. You've Met Your Maximum Credit Limit

Reaching your credit card limit is the ultimate way to get your card declined. 

For those who aren't sure, your credit card limit is the amount your issuer agrees to give to you. It's found inside your agreement or by asking your provider.

If you've never had a credit card before, your limit may only be $500. But as you gain a better credit rating, your limit could extend to a whopping $20,000!

Ensure you know your credit limit and keep track of your outstanding balance so you don't have to experience the embarrassment of meeting your limit. 

4. You've Missed Repayments

If you've built a history of missed payments, your card might start getting declined whenever you try to make a transaction. Sometimes this can happen even after just a few days past the repayment date. 

Keep in mind that missed payments don't just impact your credit card use. They can also negatively impact your credit rating, damaging your chances of getting loans and other financial products in the future.

5. You're Attempting To Use An Expired Credit Card

This will always result in one of the reasons a credit card would be declined. Thankfully, it's easily avoidable. Just wait for your new card in the mail and activate it as soon as you get it. Don't forget to destroy your old card!

declined card

6. Your Bank Has Placed A Hold On Your Card

Hotels and rental vehicle companies could place a hold on your credit card, which isn't lifted until you check out or return the car.

Make sure your credit card can handle multiple holds at once. Otherwise, you'll have to deal with constant transaction declines. Alternatively, use a different card for different bookings. 

7. You've Incorrectly Entered Your Payment Information

Finally, you could've just incorrectly inputted your card information when trying to make an online purchase! It's the easiest issue to solve, so we hope that's the case for you. 

We recommend double-checking your information before trying to buy anything. That way, you don't have to go through the whole rigamarole. 

Declined Card? Cover Emergency Payments With A Payday Loan

If you've suffered one of the many reasons a credit card would be declined while trying to fund an emergency, all hope is not lost. You can get payday loans from us at Alabama Title Loans, Inc. in just half an hour. 

We have easy-to-meet requirements and a quick process, ensuring your crisis is paid for as soon as possible. All you need is the following:

  • Government-issued photo identification
  • 30-day bank statement from an account in your name
  • Recent pay stub
  • Blank check

Provided you have the above, complete our online request form to kickstart the process.

payday loan customer meeting with representative from title loan office

Get A Quick Payday Loan Now!

There are plenty of reasons a credit card would be declined. From maxing out your credit limit to incorrectly entering your payment information to your bank placing a hold on your card, no matter the reason, experiencing a declined card can be embarrassing — not to mention downright stressful!

But don't panic; you can get payday loans if you need to fund an emergency. Just complete our simple online form and head to our store to obtain $100 to $500 to pay for medical bills, vet fees, home repairs, or other kinds of crisis. It'll be over and done with in less than half an hour. 

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.
June Mckaig

June Mckaig writes articles on finance and budgeting, hoping to provide insight amidst the overwhelming crowds of information on the internet. She feels that with all this accessibility comes a lot of false data, and she would like to contribute astute, helpful input that she knows can help others. If you would like to learn more about June's research, read more here.