A credit card is one of the most important financial inventions of modern times. A Credit Card has several benefits over other modes of payments and of course, it eliminates the need for you to carry cash everywhere. However, a credit card user can make mistakes which in turn can lead to hefty late fees and penalties that will in a sense ‘punish’ you for your bad behaviour. Thankfully, the most common credit card problems also have solutions. So, when you find yourself in trouble, consider these five common credit card problems, and how to fix them.
1. Your credit card is declined: Getting your credit card transaction declined by a merchant is one of the most frustrating things that you can encounter in your life. This problem can arise due to several reasons such as your card has expired, you have insufficient funds in your account, your card has been stolen or when someone has made a fraud attempt with your card. In such a situation, your first step should be to contact your credit card issuer and ask what’s going on. Their customer service will tell you the reason why it failed. Your bank will notify you if your card has been suspended due to a late payment or an exhausted credit line. To avoid this, you must contact your card issuer before making a major purchase transaction while travelling in a foreign country.
2. Your payments are late or missing: If your payments are late or missing, you will be charged hefty late fees and interest rates. In order to avoid the problem of forgetting to make payments on time, you can utilize the email and text alerts offered by nearly all credit card issuers. Additionally, some of the card issuers offer automatic bill payment in case you cannot keep your self up to date with the monthly payments.
3. Your annual fee is too high: One of the biggest credit card problems that we face is paying too high annual fees. In such a situation, ask your credit card issuer to waive off the annual fees. Sometimes, this requested is granted, while other times customers are given offers in the form of additional points or miles. The users can always switch to similar credit cards with no annual fees but with less generous rewards and benefits. Finally, you also have the option to cancel your credit card and receive a credit for the annual fee shortly after it is billed.
4. Applied for a wrong type of credit card: Sometimes you apply for a wrong credit card due to so many offers and rewards on the cards. Hence, the best way to avoid this kind of situation is to ask as many questions as you can to your credit card providers before opening a new account. For instance, if you have debt on your credit card and you want to get rid of that, then you need a balance transfer credit card. You can apply for a new credit card with a 0% APR balance transfer offer for a limited time period. Thus, buying an appropriate card will help you solve your problems.
5. Too many credit cards can affect your credit rating: Applying for too many credit cards at the same time can affect your credit ratings. This is because whenever you apply for a new credit card it is automatically recorded on your credit report. 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. The solution is to avoid opening a new credit card within six months of applying for a loan. When you are looking for a good credit score try to close the accounts that you are not using.
Conclusion: Hence, if you are facing any problem with your credit card, you can contact your credit card issuer and ask him for help. It’s also important to pay your dues on time to avoid any credit card related problems.