Credit cards serve as a very secure and convenient way to make payments, but that doesn’t mean they are perfect. Credit card problems are, however, not without solutions. So let’s discuss the five most common credit card problems and their solutions.
Credit Card Declined
It’s frustrating when your credit card purchase is declined. There are several good reasons why this happens. The first step is to contact the card issuer. Their customer service will be able to tell you if the purchase was attempted and if it didn’t go through, what was the reason. The bank will also alert you if your card is suspended due to an exhausted credit line or late payment. In many cases, the declination is due to the suspicion that the card is being used fraudulently.
Late or Missing Payments
Payments are often marked as missing or late, and that results in costly late fees being charged. Penalty interest rates are also common in most credit cards. You can avoid the problem of forgetting to make on-time payments by activating email and text alerts that almost all credit card services offer. You can also set up some kind of automatic bill payment system. Another reason for the failure of your payment could be that you’re sending checks in the mail which involves lots of discrepancies, so it’s better to switch to electronic payment.
High Annual Fee
Many credit cards offer great benefits all year round, but they often come with an expensive fee at the end of the year. This annual fee can become too much sometimes and you might be looking for a way to reduce it. You can try debt consolidation online to have the fee waived. This request might be granted or you may be presented with a retention offer in the form of additional points. Another option is to get the account transitioned to a credit card with no annual fee. The rewards and benefits will be less, however.
One of the most common problems faced by credit card users is that they end up accumulating a large amount of debt. This is a very tricky situation, and one way to get out of it is to stop using cards and cutting back on your expenses as much as you can. You can apply for a credit card that gives 0% APR balance, even though that offer is for a limited period. You can avoid interest using these cards and direct more cash towards paying off your credit card debt.
Your credit card may not work in a foreign country and there could be two reasons for that. Many foreign countries require credit cards with an EMV smart chip. You may want to check with your issuer and upgrade your card. Foreign credit card activities can also be flagged as fraudulent, so make sure your bank is notified that you’re traveling. You can also take advantage of no foreign transaction fees if you travel often.