Credit cards are known to be very convenient, secure and a handy way to make payments such as monthly bills, insurance premiums, online shopping etc.
It is very easy to get a new credit card but there are many common mistakes that credit card users make and are needed to be solved immediately. So, before picking a credit card one must be aware of those common credit card problems and know the ways to fix them. Here, we will discuss most common credit card processing problems.
The credit card is proven to be the most cheapest form of credit and needs to be reasearched properly for its renewal and joining fees. It is also important to find out the other aspects such as interest rate, billing cycle, fees and charges for late payments.
Consider these five common credit card problems and the solutions to fix them.
- Not sure why your Credit Card has declined?
The last thing you want is having your credit card transaction declined by your provider. This credit card processing problem could happen due to many reasons such as:
- Your card has expired.
- You have reached or exceeded your credit limit.
- You have insufficient funds in your account.
- Someone has made a fraud attempt with your card.
- Your card has been reported stolen or lost in the bank.
Solution: When your credit card purchase declined the first and foremost thing is to call your provider and ask the reason why it failed. Your bank or issuer will notify you if your card is suspended due to late payment or exhausted account. To avoid this, you must contact your card issuer before making a a major purchase transaction while travelling in a foreign country.
- Applied for a wrong type of credit card:
Sometimes you get carried away with the rewards and buy rewards card instead of a credit card. The best way is to ask as many questions to your credit card provider before opening a new account. In case you have credit card debt and you want to get rid of that, then you need a balance transfer credit card. If you are looking for a card to buy big tickets then you need to buy a card that offers 0% on new purchases. Thus, buying an appropriate card will help you solve your problems.
Solution: When you have bad credit you need an improvement card and not the reward card. So, if you open a card to pay your bill in full each month then you shouldn’t really worry about rewards. You can always shop on credit with the department stores themselves like the site collection at Online Bestellen Achteraf Betalen to avoid over-using your card.
- Too many credit cards can affect your credit rating
Applying for multiple credit cards and regularly changing between multiple cards can affect your credit ratings. This is because whenever you apply for a new credit card it is automatically recorded on your credit file. The new credit card provider will check your credit history to know how many times you have been refused or how much credit you own. Thus, no one wants to lend you if you have lots of cards already on your file.
Solution: The solution is to avoid opening a new credit card within six months of applying for a loan or buying a new car. When you are looking for a good credit score try to close the accounts that you are not using.
- You have missed or late payment.
A common mistake of not making payments on time will leads to paying costly fees and penalty interest rates. First and foremest step is to regularly check your emails and text alerts and make notes to remember payment dates. Additionally, the card issuers will offer automatic bill payment incase you cannot keep your self up to date with the monthly payments.
Solution: If you are commonly losing or delaying your payments then you should consider opening a credit card with a provider that has no late fees or penalty APR for cardholders.
- You are paying a high annual fee.
One of the biggest common credit card problems that credit card users face is that they have to pay relatively high annual fee. To get over this problem, they can look ways to search for the providers who can offer lesser fees or ask their providers to reduce the fees. Sometimes the request can be granted and the customers can get retention offers in the form of points. The users can always switch to similar credit cards with no annual fees but with less generous rewards and benefits.
Solution: The customers who are paying heavy annual fees can ask their issuing bank to cancel their card and receive a credit for the annual fee straight after its billed.
To conclude, the interest rates, fees, and terms offered by credit card issuers frequently change. As a result one must verify with their card issuing company or financial institutes about the current rates, fees and terms for acquiring benefits and rewards.