5 Frequent Credit Card Issues and How to Resolve Them?

Credit cards allow users to shop now & pay later either in full or part payment. Regular credit card bill payments boost your credit score, and your eligibility for loan approval strengthens. However, credit cards are not free of flaws, and every cardholder should know them.

We will explain five crucial credit card problems and solutions for your quick reference in the following sections.

Five Credit Card Issues and Solutions

Credit Card Declined

You went for puja shopping and handed over the credit card for payment, but the cashier returned the card because it was declined.

This happens with several people. The reasons for the same could be insufficient credit card balance, KYC, card expiration, card suspension, or poor network.

Solution

You should check emails, messages, and notifications from the credit card provider. Stay updated to avoid such frustrating situations. Generally, credit card companies notify you about pending KYC, payments, expiry dates, etc. Always check your credit limit before going out for big spending.

High Annual Fee

Credit card companies charge an annual fee from cardholders. Several companies waive the charges in the first year to boost sales and charge from the second year onwards. However, salespersons do not disclose this to fulfil their targets.

On the other hand, several cardholders forget to check their annual credit card fee and experience an unpleasant surprise at the time of billing. Also, people hold multiple credit cards to reap the benefits of different credit cards for shopping, eating, traveling, etc.

Ignoring annual fees and holding multiple cards cause inflated annual fees and bills.

Solution

Read all the terms and conditions before applying for a credit card. Avoid holding multiple cards and carry one or two cards per your requirements.

Missing the Payment Due Date

Credit card holders often spend more than required. It causes debt and unplanned burdens. Therefore, people start missing payment due dates. Whereas some people delay payments due to multiple credit cards.

Whatever the reason, missing due dates further increase your credit card bills. You should avoid late credit card bill payments because of the following reasons:

• Lenders charge a hefty penalty for late fees and add them to your next bill.
• Credit card companies charge a penalty interest rate on outstanding payments of more than 60 days. This could go up to 30 per cent on the pending amount.
• Hassles of debt collection measures by credit card companies

Solution

Set a reminder for credit card payments and never miss a date. Delay in credit card bill payment also affects credit score and could cause trouble in avail loans. If there is already a delay in the payment, pay as much as possible to reduce penalty interest.

Consult your credit card provider for an auto-pay facility. If the outstanding amount is unaffordable for you to pay upfront, convert purchases/s into monthly instalments after consultation with the credit card provider company.

Credit Card Damage

Credit cards become demagnetised after years of use, and you can not swipe them in stores. Cards are demagnetised due to overuse, improper keeping, exposure to magnets, and so on. Some shopkeepers dial the credit card number in the machine, but it is not possible with all merchant points.

Solution

Log into the internet banking of your bank and apply for a duplicate credit card. You can also call customer support to know the process. Generally, credit card companies issue duplicate cards within seven working days. You should check the issuance fee or any other related charges before applying.

Credit Card Not Working Abroad

Almost all the leading credit card providers ask you to set up international credit card usage after receiving the card.

It helps people to shop on international websites or use outside India. People are unable to use credit cards abroad mostly because they miss activating the option.

Another possible reason is old credit cards without EMV chips. Reserve Bank of India has made EMV chip and PIN-based debit and credit cards mandatory for domestic and international use from 1st September 2015.

Therefore, if you own older credit cards, they won’t work in other countries.

Solution

Log in to your credit card account and enable international credit card usage. You can also visit personally or call customer support for guidance. For the second scenario, apply for the new card because all the new cards come with EMV chips by default these days.

Credit card interest rates, terms, charges, and fees vary significantly as per the customer, region, and credit history. Hence, you should read all the terms & conditions properly before applying for the card. Never miss any notifications, emails, and messages. Pay credit card bills on time and enjoy the advantages of credit cards without unpleasant surprises.