“How to Handle a Declined Credit Card Transaction”

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Understanding Credit Card Declines and How to Resolve Them

At O1ne Mortgage, we prioritize consumer credit and finance education. If your credit card gets declined, it can be frustrating or even embarrassing. Here are some steps to help you resolve the issue and use your card again.

1. Try the Transaction Again

Sometimes, a declined credit card can be resolved by simply trying the transaction again. The card may have been declined due to:

• Incorrect information: Double-check the card number, expiration date, or CVC security code you entered online. Re-enter the information to see if the transaction is approved the second time around.
• Card won’t work: If you’re in a store, ask the clerk if you can attempt the transaction again. If it still doesn’t work, consider using another card.
• Merchant issue: The problem might be on the merchant’s end. Try visiting one of their physical stores to complete the purchase.
• Mobile payment issue: If using a mobile payment app, try using your physical card instead. The store’s mobile payment system might not be working properly.

2. Contact Your Card Issuer

Reaching out to your card issuer can help resolve the issue. They can provide reasons for the decline, such as:

• Maxed out card: You may have reached or exceeded your credit limit.
• Suspected fraud: The issuer might have flagged the transaction as fraudulent.
• Expired card: You might be using an expired card instead of the new one issued to you.
• Closed account: Your account might have been closed without your knowledge.
• Pending payments: If you have overdue payments, the issuer might decline new transactions.
• Pending large purchase: Some companies place a hold on a certain amount, affecting your available credit.
• Locked card: If you locked your card and forgot to unlock it, transactions will be declined.
• Merchant restrictions: Some merchants, especially abroad, may not accept certain cards.
• International use: Notify your issuer about international travel to avoid declines due to suspected fraud.

3. Resolve Any Issues

If your card has been declined, you can take several steps to resolve the issue:

• Store credit card information to avoid incorrect entries.
• Lower your balance to stay below your credit limit.
• Replace expired cards with new ones.
• Request the issuer to reopen closed accounts.
• Make overdue payments.
• Use autopay to avoid missed payments.
• Pay your full balance every month.
• Sign up for account alerts.
• Carry at least two credit cards as a backup.
• Monitor your accounts and credit to reduce the chances of a decline.

Does Having Your Credit Card Declined Hurt Your Credit?

Fortunately, having your credit card declined does not hurt your credit. However, reasons for a decline, such as missed payments or exceeding your credit limit, can impact your credit score. Maintaining a low credit utilization rate, ideally below 30%, is crucial for good credit.

The Bottom Line

Credit card declines can happen for various reasons, but you can take steps to fix the situation or prevent it from occurring. Start by contacting your card issuer to understand why the transaction didn’t go through. Addressing the issues identified by your credit card company can help you avoid future declines.

For any mortgage service needs, call O1ne Mortgage at 213-732-3074. We’re here to help you with all your financial needs.

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