I recently received a letter from the bank for a credit card that I have had at least 8 years. No late payments, no balances, no recent activity. I have kept it for building credit and as an emergency card in case I needed for some unforeseen event. There is no annual fee so it met my needs.
By the way, this letter was from Washington Mutual. Unlike my American Express cards that just lowered my credit limits to the balances I owed, they sent me a letter that was a bit more upfront. They said since I don't use my card and have had no activity on it in the last 12 months, we are canceling it. I know some would be offended by this, but knowing that this bank basically failed how can you really get mad.
Even if they did charge me an annual fee and made some money off me from that, I think they would have canceled the account anyways. Because of our current state of economy, more credit card issuers are canceling accounts that are not profitable. Banks are basically going into defensive mode and will basically be canceling credit cards to survive for the long term.
Welcome to Basic Credit Card Stuff. This site provides tips and techniques for consumers in order to help understand credit cards based on my own experiences. If you have questions not covered in Basic Credit Card Stuff, please feel free to post a question in the comment section and I will email you in confidence.
Saturday, November 29, 2008
Friday, November 28, 2008
Basic Credit Card Reasons for Decline
OK, you are at the mall with your credit cards in hand this Black Friday and ready to charge some great deals after shopping for a few hours. You patiently waited for 15 to 30 minutes in line, but when the cashier rings up your sale, she says the card has been declined. Good thing you had a back up credit card with you and some cash to make sure you were covered.
In the back of your mind you must be wondering, why didn't the charge go through. The card is paid up to date and I have plenty of available credit. There is no basic credit card reason of this account to be declined. You make a mental note to yourself to call the credit card issuer when you get home.
Before you call, there are basic credit card reasons for your purchase to be declined. Some may be for security reasons, if you don't make that many purchases on that particular card. That has happened to me recently, but I usually get a call from my credit card company asking to confirm if I just made a few purchases at so and so places. The credit card companies have security features that flag your account when there is unusual activity or excessive activity on your credit cards. They do this for your protection, but most importantly their protection. The credit card company would prefer to decline your purchase and restrict your account, than to take a loss from fraudulent credit card purchases. That makes sense. Of course, this will also get you to call them if you are the legitimate person authorized to charge on the credit card.
Another basic credit card reason to get declined is if your payment is late or was just late in the last billing cycle. Credit card companies have programs that will flag your accounts if you miss making a payment in the billing cycle before your due date. You will know you are late if you check your statements because there will be a monster late charge and possibly over the limit charge added on. Ouch!
There is also the dreaded decrease in credit limit reason which will cause your account to decline because the credit card company has reduced your credit to the balance you owe on it. Like I said I am blogging about my personal experiences and this one bites. Especially if you haven't been late on any of your payments. Here is my personal blog about that. I hate when that happens. There are many reasons why the credit card company may have lowered your limit recently, but that is a blog post in itself.
Now the worst reason to have your credit card declined is because the credit card company has canceled your account. You should have been notified by mail or email, but may have overlooked it. Again, the reasons of why they would have canceled your accounts is another post in itself, too.
There are many basic reasons why your credit card company would decline your purchase like the reasons listed above. It could be as simple as you taking an expired credit card with you or a newly issued credit card that you have forgot to activate. Of course, the best way to find out the reason your credit card was declined specifically is to call the credit card company's customer service (unfortunately you will have to wait awhile because their call volume this time of the year is through the roof).
In the back of your mind you must be wondering, why didn't the charge go through. The card is paid up to date and I have plenty of available credit. There is no basic credit card reason of this account to be declined. You make a mental note to yourself to call the credit card issuer when you get home.
Before you call, there are basic credit card reasons for your purchase to be declined. Some may be for security reasons, if you don't make that many purchases on that particular card. That has happened to me recently, but I usually get a call from my credit card company asking to confirm if I just made a few purchases at so and so places. The credit card companies have security features that flag your account when there is unusual activity or excessive activity on your credit cards. They do this for your protection, but most importantly their protection. The credit card company would prefer to decline your purchase and restrict your account, than to take a loss from fraudulent credit card purchases. That makes sense. Of course, this will also get you to call them if you are the legitimate person authorized to charge on the credit card.
Another basic credit card reason to get declined is if your payment is late or was just late in the last billing cycle. Credit card companies have programs that will flag your accounts if you miss making a payment in the billing cycle before your due date. You will know you are late if you check your statements because there will be a monster late charge and possibly over the limit charge added on. Ouch!
There is also the dreaded decrease in credit limit reason which will cause your account to decline because the credit card company has reduced your credit to the balance you owe on it. Like I said I am blogging about my personal experiences and this one bites. Especially if you haven't been late on any of your payments. Here is my personal blog about that. I hate when that happens. There are many reasons why the credit card company may have lowered your limit recently, but that is a blog post in itself.
Now the worst reason to have your credit card declined is because the credit card company has canceled your account. You should have been notified by mail or email, but may have overlooked it. Again, the reasons of why they would have canceled your accounts is another post in itself, too.
There are many basic reasons why your credit card company would decline your purchase like the reasons listed above. It could be as simple as you taking an expired credit card with you or a newly issued credit card that you have forgot to activate. Of course, the best way to find out the reason your credit card was declined specifically is to call the credit card company's customer service (unfortunately you will have to wait awhile because their call volume this time of the year is through the roof).
My Basic Credit Card Stuff
If you have no credit, limited credit, bad or good credit, this blog will help you learn all the basic credit card stuff you will want to know. There are many sites out there that deal with credit cards, but this blog will be based on my own personal experience and knowledge. You should of course read other sites to confirm any information here.
I have over 20 personal and business credit cards including visa, mastercard, American express, and discover. They all have their advantages and disadvantages. Hopefully, you will find the information I post on my blog beneficial to your needs.
When I first started building my credit history, it was a challenge because creditors didn't want to be the first to grant you credit. I first started with the instant approval cards at the major retailers. This seemed to be the best way to get started for me. I didn't want to pay annual fees and I was just a student with a part time job. At the time, I didn't understand why the major credit card companies didn't want to grant me a visa or mastercard with a modest credit limit.
I have been in the credit industry for about 20 years now. My perspective has dramatically changed from what I thought was something I deserved vs what credit companies are really after. They are like any other business who want to make a profit and the way to accomplish this is to reduce risk by approving credit applications to those who have proven themselves.
When I was 18 years old, I wanted to have a credit card for the sake of having a credit card. That really doesn't make any sense, but when you are a kid like me you get obsessed with certain things. For me it was building my credit so in the future I could buy things on credit like a car and house and get those loans at the cheapest rates.
Originally, I applies to 4 major retailers for their charge cards. I was approved for 2 of them. I didn't shop at those places, but forced myself to buy things I didn't need so I could pay them back. That is simply how you establish credit.
I have over 20 personal and business credit cards including visa, mastercard, American express, and discover. They all have their advantages and disadvantages. Hopefully, you will find the information I post on my blog beneficial to your needs.
When I first started building my credit history, it was a challenge because creditors didn't want to be the first to grant you credit. I first started with the instant approval cards at the major retailers. This seemed to be the best way to get started for me. I didn't want to pay annual fees and I was just a student with a part time job. At the time, I didn't understand why the major credit card companies didn't want to grant me a visa or mastercard with a modest credit limit.
I have been in the credit industry for about 20 years now. My perspective has dramatically changed from what I thought was something I deserved vs what credit companies are really after. They are like any other business who want to make a profit and the way to accomplish this is to reduce risk by approving credit applications to those who have proven themselves.
When I was 18 years old, I wanted to have a credit card for the sake of having a credit card. That really doesn't make any sense, but when you are a kid like me you get obsessed with certain things. For me it was building my credit so in the future I could buy things on credit like a car and house and get those loans at the cheapest rates.
Originally, I applies to 4 major retailers for their charge cards. I was approved for 2 of them. I didn't shop at those places, but forced myself to buy things I didn't need so I could pay them back. That is simply how you establish credit.
Labels:
american express,
basic credit card,
discover,
mastercard,
visa
Introduction Credit Card Basics
Welcome to Basic Credit Card Stuff for beginners. This site provides tips and techniques for consumers in order to help understand credit cards. If you have questions not covered in Basic Credit Card Stuff, please feel free to post a question in the comment section and I will email you in confidence.
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