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Credit card blocked? Here is what you need to do

IamCheated.com Research Team | February 05, 2019  6:39:pm

Credit card blocked? Here is what you need to do

A credit card which is also known as plastic money; helps spend when you are running out of cash. When you have a credit card, you don't have to wait till you get salary to buy what you want. You can simply swipe the credit card and then pay the credit card dues. But, there are certain situations where credit card transactions are declined as the credit card is blocked.

Credit card gets blocked because of various reasons. As a credit card user, it is very important to be aware on the reasons for blocking the credit card and the steps that need to be taken when the credit card gets blocked.

See Also: Credit card cash withdrawal: Think twice!

In this blog, we will discuss why a credit card gets blocked and what needs to be done in such a situation.

1. Overutilization

Credit cards have something called credit limit. The credit limit is the limit up to which you can spend using credit card. Credit limit differs across cards. The credit limit is usually set on the basis of income. Credit card will be blocked if you keep swiping even after the credit limit is exhausted.

If your credit card is blocked due to overutilization, you can get it unblocked by paying the amount used. Ideally, it is good not to cross the credit limit as it affects your credit score.

2. Default on payments of the credit card bill:

If you default on credit card bill payment, or if you don't pay the minimum balance due, your credit card gets blocked. A First-time default is acceptable. But if you default on three payments, your credit card gets blocked.

In such a case you must make immediate payments to get your credit card unblocked. Either you can make complete payments or minimum amount due.  Defaulting on your credit card affects credit score as well.

3. Suspicious activity

Banks take all steps to ensure that your credit card is safe and secure. So, in the case of any suspicious transactions, banks will block your credit card to prevent it, getting misused. For instance: your card will be blocked if you swipe your card back to back, at a single POS machine.

If your card is blocked due to this, you must call the bank's helpline number to re-activate.

4. Non-receipt of KYC documents

As per rules, all credit card customers must follow the ’Know Your Customer (KYC)’ norms, laid down by the RBI and provide the requisite information and documents. This is mainly done to ensure transparency in financial transactions. Your credit card will be blocked if you do not provide the required details and documents.

For re-blocking your credit card, you must submit all the necessary documents to your credit card issuer.

See Also: Credit Card Safety Tips

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