Many people have become so dependent on credit cards and for them, it is almost impossible to manage their finances without a credit card. If you are also habitual in using credit cards, you might be aware of all the benefits and convenience that credit cards offer. Can you imagine a situation when your credit card suddenly stops working and you don’t even know the reason? It may sound like a nightmare, but you should not worry about such situations. In this article, we will help you understand the possible reasons why your credit card may not be working and what actions you must take in such situations. Continue reading for further information:
Reasons Why Your Credit Card Might Not Be Working?
The following are some of the possible reasons why your credit card may stop working or why a merchant may decline your card:
Your Card Has Expired
If you are using a credit card for a long time, you might be aware of the fact that credit cards do not come with lifetime validity, but they expire after a certain time. If your credit card has stopped working suddenly, you should check the expiry date of your credit card. You can find the expiry date on the front side of your card and if your card has expired, you don’t need to worry as the card issuer will send the replacement card for you. Sometimes the replacement card is sent to you even before your previous card has expired so that you don’t face any difficulties. You can just activate the new card and start using it for your transactions.
You Haven’t Activated It
If you have newly received a credit card and trying to make transactions using it, it won’t be working. It is because credit cards need to be activated before you use them for making some purchases. You can activate your card through internet banking, through an ATM near you, or by contacting the respective bank’s customer care. Just make sure that you activate your card as soon as possible after receiving it as the issuer may close your card if not activated within a few weeks after issuance.
You Have Used 100% Of Your Credit Limit
Every credit card comes with a credit limit, which is the maximum amount you can spend using your credit card in a particular month/billing cycle. If you have already exhausted the 100% of your credit limit, you might not be able to make any further transactions as you do not have any more credit left on your card. However, some card issuers also allow you to spend beyond your credit limit and charge an extra fee for that, but some issuers don’t allow spending more than your credit limit.
In order to maintain a good credit score, it is advisable not to spend more than 305 of your credit limit. So, spending the entire credit limit is not at all a good idea until it’s a real emergency. You should keep checking the available credit on your card and stop spending on it once it goes beyond 30% of the total limit.
The Magnetic Strip Is Scratched
Credit Cards also have a magnetic strip on the backside and this strip plays a significant role in completing offline transactions using your credit card. If this strip has been scratched or destroyed, your credit card might not work properly and merchants may decline it. So, you should keep your credit card away from anything that may cause any damage to the magnetic strip. In such a case, you can order a replacement card by contacting your card issuer.
Your Card is Blocked By The Issuer
When your card issuer suspects any fraudulent activity on your credit card, they can block your card temporarily. For example, if you are making a purchase at a store where you don’t usually shop using your credit card, your card issuer may consider it as a fraudulent transaction and they might block your card. You can easily get it unblocked by contacting your credit card customer care. Your card may also be blocked by the issuer if you have not used it for a long time. However, a confirmation email is sent to you by the issuer before blocking your card.
If your credit card has stopped working suddenly, you need not worry, you can just take the necessary actions as mentioned above in the article. In these situations, it would be great if you have multiple credit cards. Even if one of your cards is not working, you will have an alternate option and you won’t face difficulties in making any purchases. Just make sure that you keep using your credit card regularly and also keep the credit limit in mind.