Maybe you’ve had a recent shock getting your credit card declined for the first time, or maybe your credit card has repeatedly been getting declined and you’re not sure why.
Find out everything you need to know about why credit cards are declined and what you can do about it so you never get rejected at checkout again.
Table of Contents
- 1. You’ve reached your credit limit
- 2. You made a suspicious purchase
- 3. Your credit card is expired
- 4. You’re out of town
- 5. You have late payments
- 6. You entered the wrong credit card information
- 7. You’re an authorized user on a card you no longer have access to
- 8. Your credit card was closed without your knowledge
- 9. Your credit card isn't active yet
- 10. Your credit card is physically damaged
- What to do if your credit card is declined
1. You’ve reached your credit limit
Perhaps the most common cause of a declined credit card transaction is limited funds. If you’ve reached your credit limit, unfortunately you can’t spend another dime until you’ve paid off some of your balance.
You may be confused thinking you had more available credit than you actually did. Keep in mind that most charges take 1–3 days to process and won’t show up in your current balance until they’re confirmed. So you may have looked at your balance and thought you had more money to spend based on recent transactions that were still processing.
How to prevent this: Spend below your credit limit
Always monitor your credit card spending to ensure you don’t go above your limit. Not only does maxing out a credit card leave you without funds, but it also can get you penalized with fines or card cancellation, and it hurts your credit score. That’s because it increases your debt-to-credit ratio, which you want to keep as low as possible.
2. You made a suspicious purchase
Every credit card company has fraud and theft protection measures in place. Unfortunately, these systems sometimes work against us.
If you made a recent purchase that was deemed suspicious by your card issuer, you may have triggered a card lock.
For example, credit card companies may flag purchases that are more expensive than your usual buys. If you only usually only spend up to $100 in a day on the card but suddenly made a purchase of $3,000, your credit card issuer may flag this activity.
While it can be inconvenient to be locked out of your card, these blocks are ultimately for your own good to ensure your card isn’t stolen. To amend the situation, call the number on the back of your card right away.
How to prevent this: Sign up for account alerts
Sign up for fraud alerts on your phone through your credit card app or online management system. You’ll know immediately if suspicious activity appears on your card and can amend the misunderstanding if it was triggered by a purchase you made.
3. Your credit card is expired
If you try to make a purchase with an expired credit card, you’ll automatically be declined.
You can find your card’s expiration date either on the front or the back in a month/year (xx/xx) format. For example, seeing “02/26” on our credit card means it expires in February of 2026.
You’ll often get notified by your credit card issuer before your card expires so they can send you a new one. However, if they fail to notify you, you’ll need to call them directly and ask for a new card.
Your new card will have a completely different expiration date and likely different credit card numbers than your other one.
Note that even if your new card is in the mail, you can’t make purchases using the expired card. You’ll just have to wait for the replacement to arrive.
How to prevent this: Pay attention to your credit card’s expiration date
To avoid being left without a credit card while waiting for a new one in the mail, be aware of your credit card’s expiration date. When your card is a couple months away from expiring, request a new card from your issuer.
After you’ve received your new card, destroy the old one thoroughly by cutting it up in order to avoid credit card theft.
4. You’re out of town
If you’re traveling, especially abroad, your card issuer may flag any purchases you make as suspicious under the assumption your card has been stolen.
While most credit card issuers reserve suspicion for credit card use in a different country, some may block purchases made in another state or even city.
This is particularly likely to be the case if you’re traveling between multiple places in a short period of time. For example, if you’re on a roadtrip and using your card in different states every couple days, your credit card issuer might suspect your card has been taken and freeze it until they can confirm the purchases were yours.
How to prevent this: Make your travel plans known
If you’re preparing to go on a trip, add your travel plans to your credit card’s online account or call your issuer to let them know where you’ll be. Otherwise, you risk getting locked out of your card for suspicious purchases—a massive inconvenience while out of town.
5. You have late payments
If you’re behind on payments on your credit card, your issuer may freeze your account until you make strides to pay off your debt.
You may have missed monthly payments out of basic forgetfulness, or you might be in a hard financial situation. If it’s the latter, contact your credit card issuer and ask if you can negotiate a debt repayment plan.
On the other hand, if you’re able to make at least your minimum payment on the card, do so right away to regain access to your line of credit.
How to prevent this: Set up autopay
The best way to keep your credit score in the clear and your credit card active is to pay your balance in full each month. Even if you can’t pay in full, make sure you can make at least the minimum payment; late payments are deadly to your financial health and your credit.
An easy way to ensure you always make your minimum payments is to set up autopay on your credit card. Many credit card issuers offer this service directly through their website or app. If they don’t, you can set up autopay from your bank to the card issuer.
6. You entered the wrong credit card information
If your credit card was declined while trying to purchase something online, you might have simply entered the wrong information. With how many details most credit card portals require, it’s easy to mistype a letter or number here and there.
Check the following details on your checkout page to ensure they’re correct:
- Your name (as it appears on your credit card)
- Your billing address (make sure it’s the same one your credit card is registered to)
- The card number
- The expiration date
- The security code
- Terms and conditions (many payment portals include “Terms and Conditions” boxes you need to click in order to successfully check out)
How to prevent this: Double-check your information
Go slowly when filling in checkout forms and double-check the information you’ve entered. Taking a little longer on your initial go-around could save you more time in the end.
7. You’re an authorized user on a card you no longer have access to
If you’re using a card on which you’re an authorized user (someone the main cardholder has allowed to access their account), the primary user might have:
- Removed you from the card
- Canceled the account
- Overspent their credit limit
Contact the person whose account you’re using immediately to get to the bottom of the issue.
How to prevent this: Get your own credit card
Being an authorized user is a great way to build credit, especially if you’re just starting your financial journey. However, if you don’t want to be beholden to someone else, you need your own card.
If you’re worried you won’t be able to qualify for a credit card, look at our list of credit cards for people with no credit or starter credit cards.
If you’ve spent enough time building your credit as an authorized user, your credit may even be good enough to qualify you for more generous credit card offers, like rewards cards.
8. Your credit card was closed without your knowledge
Your credit card company may have closed your account without you being aware of it. While it isn’t common for a card issuer to close an account without warning, there are a few reasons they might have done so:
- You haven’t used the card in a long time: If you haven’t used your credit card in a long time, your card issuer might have closed it, assuming the card was no longer in your possession or you’d decided to stop using it.
- Your credit score dropped: If your credit score recently took a drastic hit, you might no longer qualify for the credit card you’re currently using.
- Your contact info changed: Many credit card issuers will send notice to borrowers before closing an account. If your contact information is different than it was when you opened the account, you may have missed messages warning of the upcoming cancellation.
How to prevent this: Apply for credit only when you need it
Keep a manageable number of credit cards on hand rather than a drawer full of spare cards. Only opening credit accounts you’ll actually use will make managing your finances easier and will prevent cards from being unceremoniously canceled.
9. Your credit card isn’t active yet
If you only recently got the card that’s been declined, it might not even be active yet. Once you’ve qualified for a credit card, there are two steps you need to take before you can use it:
- Wait for the card in the mail: While you may be tempted to use your card numbers right away for an online purchase, you need to wait to receive your card in the mail. The only exception here is if you nabbed a virtual credit card.
- Activate your card: Once you’ve received your card in the mail, you need to call the number on the sticker attached to your card that lists the activation instructions. Many cards can also be activated online.
How to prevent this: Be patient
Unfortunately, you can very rarely use a credit card on the same day you’re approved. Instead, wait for your card to be delivered and follow the instructions to activate it. In the meantime, use another card or put your purchase on hold until your new card comes in.
10. Your credit card is physically damaged
Surprisingly, credit card transactions can be declined if the card itself is damaged. If the card is bent, broken, or scratched—especially if the magnetic strip is corrupted—it can no longer be readable to a card swiper.
If you think this is the case, call your card issuer ASAP and ask for a replacement card. Once the new card arrives, remember to cut up your old card so you don’t risk credit card theft.
How to prevent this: Be gentle with your credit card
Treat your card with care and store it safely in your wallet. You want to pay special attention to keeping the magnetic strip intact. Use a card carrier, wallet, or phone case with designated card slots to store and transport your credit cards.
What to do if your credit card is declined
There are a few steps you can take right away if your card is declined:
- Call your credit card issuer: Call your issuer right away to clarify why the card was declined and ask if they can lift the hold on your account. Even if you still aren’t able to use the card, at least you’ll understand the problem and can begin fixing it right away.
- Use another form of payment: Always keep a backup form of non-cash payment in your wallet (i.e., a debit or credit card). Emergencies happen, and you don’t want to be left without money in a time of need.
- Phone a friend: If you’re stuck without funds while trying to make a purchase, you can walk away and buy the items another time. However, if you’ve already used the product or service (e.g., dined at a restaurant or gotten a pedicure) and have no means of paying for it, call a friend or family member to come front the bill. If there’s no one you can call, offer to leave your ID with the establishment until you can come back with payment.
