August 14, 2023

Common Credit Card Problems and the Solutions to Them

If you have a credit card, chances are you will run into problems. This is assuming you haven’t already done so. It can be frustrating when they happen, and this article will help you. We will go over the top seven common credit card problems people have or have had. We will also talk about how to fix these common problems.

  1. You Can’t Afford Your Payments

What happens if you go on a shopping spree and can’t afford your new payment amount? You’re not alone; a survey showed that 44 percent of Americans pay their bill late or have trouble paying anything. Don’t stop making your payments; this is the worst thing you could do in this situation. You should get in contact with your credit card issuer as soon as you start having trouble paying. Ask them to lower your monthly payment or reduce credit card interest fees. If they can’t or won’t do this, cut back on your monthly expenses. You can cut out luxury items like internet or television until you catch up. You can also try debt counseling. Your counselor will make a budget after they look at your monthly expenses. You have to live within your budget, and you’ll be able to catch up.

  1. Credit Card Declined

Having your card declined can be humiliating and frustrating, but it happens. There could be a number of reasons for this, and you should contact your issuer first. A customer service rep should be able to look and see if your account is suspended or flagged. If it’s declined for an exhausted credit line or late payments, your bank would know. If your card issuer thinks the charges are fraudulent, they’ll refuse the purchase. To avoid this, get in touch with your card issuer before you make a large purchase and warn them. Also get in touch with them if you plan to travel internationally.

  1. You Have a High Annual Fee

There are a lot of great credit card options out there. However, many of they come with too high of an annual fee. This is one of the most common credit card problems a person can face. If this cost gets too much for you to handle, the first thing to do is contact your lender. Ask them if they’ll waive the annual fee.

This can go one of two ways. They’ll either do it for you or send you to retentions. If you end up in retentions, they might try to get you to stay with bonus miles or rewards. The second option is for you to switch your balance to a card with no annual fee. They usually won’t have as great of a rewards system, but it’ll cost you less per year. Finally, you have the option of canceling your card. If you do this, you’ll get credit for the yearly credit card fee soon after you cancel. Now it’s time to shop around for a new card with a low or no annual fee.

  1. Your Credit Card Refuses to Swipe

The strip on your card wears out with repeated use. Also, if you leave it around a magnet for a period, it’ll become demagnetized. This can happen from your card being in contact with a magnetic clasp on your wallet as well. Purses can also have these magnetic closures, and this can wipe your card. This means your information was erased and is no longer usable. Some cashiers will enter your card number manually, and this will work for a while. However, you’ll have to call your credit card company and request a new one eventually. There is no other fix for this issue.

  1. Your Pay Day and Credit Card Due Date Are at Odds

Your credit card due date and your pay day can be at opposite ends of the month. This will force you to juggle other bills to have money for your credit card payment. You can call your card issuer and ask if they can move the due date. Before you do this, look at your upcoming pay days. You want to find a balance because your card will be due on the same day every month.

  1. You Let Someone Use Your Card, and They’re Not Paying the Balance

Your credit card is in your name, and you run a risk each time you let someone use it. You will be stuck with the balance, not your friend or family member. If they do it without your permission, it’s illegal, and you can take them to court over it. If you gave them permission, there’s not a lot you can do but pay the balance. You’ve just learned the hard way why cosigning can be a bad idea or let anyone else use your card. It’s your credit you’re risking, and this is never a good idea.

  1. You Have Late or Missing Payments

It’ll be reported if you’re always late with your bills, or you just missed bill payments. This will cause your credit score to fall, and it will only get worse the longer you go without paying. To avoid this, set up email and text alerts. These will give you a good reminder when your payments are due. These alerts are usually free, and almost every lender offers them to their customers. You can also set up electronic, reoccurring payments. As long as you have money in your account to cover the bill, you won’t have to worry about it. You can also look for a card that doesn’t have a late payment penalty like the Citi Simplicity card.

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