5 Common Credit Card Problems & How to Fix Them

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If you are looking for a short-term line of credit that can be instantly accessed without any restrictions, then a credit card is the ultimate solution. Financial emergencies can come at any time and one needs to be prepared for the same. Credit cards act as your first line of defence against any immediate financial needs. A pre-approved credit limit is available for users to pay for goods and services both offline and online. Knowing everything related to your credit card will help you avoid any challenging situations in the future. Most people who apply for credit cards have little knowledge about how it works. This can lead to a panic situation when they face some common it problems. Read on to know more about what these it problems entail and how you can fix them easily. 

1. Your credit card is declined

One of the most common challenges that are faced by credit card users is the card decline notification. You might face this problem where your credit card is declined by a merchant. This can be frustrating when you want to get a product instantly. This problem can arise because of multiple reasons. The first step to tackle this situation requires contacting the card issuer and asking for more information as to why it has been declined. You will be notified by your bank or credit bureau in case you have exhausted your credit limit. You will also receive a notification in case your card has been suspended. Most card decline scenarios happen because the issuer deliberately declines a charge pending verification. This is done to limit any fraudulent activity on the account. 

2. Late or missing payments 

Another problem that most it users face is related to late or missing payments. People often forget their it due date, which leads to missing or late payment of bills. This, in turn, invites late fees and penalty interest charges on the outstanding amount for a particular cycle. One can easily set email and text alerts to meet their payment obligations on time. Most credit card issuers also offer the auto-debit facility to their users. This will eliminate the need to remember any due date. All you have to do is maintain a sufficient balance in your account to pay your bills on time. It is recommended that you make your bill payments online instead of using the traditional cheque system, which can lead to unnecessary delays.

3. Very high annual fee 

There are plenty of credit cards available in the market, each packed with a unique set of features suitable for a specific customer base. Choosing the right credit card requires assessing your needs and the features offered by the card. Some of the best credit cards that are power-packed with offers also charge a high annual fee. You might not need all those offers, so it is recommended to avoid these cards. Many a time, the annual fee can add to your financial burden. You can try contacting your card issuer to reduce or waive your annual fee. If your request is not granted, you can consider switching to an alternative option with a low or no annual fee. 

4. High debt amount 

A high debt amount can indicate your card issuer of financial challenges and troubles. One of the most common problems that persist today with credit card users is that they have too much debt on their card compared to the available credit limit. A high credit utilisation ratio also affects the credit score. You can use alternative payment methods to pay for a purchase that doesn’t require credit cards. Applying for a new credit card that offers a 0% APR balance transfer can help you avoid additional interest charges and lower the credit utilisation ratio on each card. Reducing the interest amount will also contribute towards reducing your total debt. 

5. Credit card only limited to domestic country 

One of the biggest problems faced by credit card users travelling to a foreign place is that their cards don’t work in foreign countries. Most of the time, the transactions conducted in foreign countries can be flagged as fraudulent by your credit card issuer, which can add to your troubles. You can tackle this problem by contacting your credit card issuer and informing them about your foreign travels.

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