Credit Card Declined: What to do about it!

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The Story of my Failure

This past weekend brought to life one of my greatest fears and embarrassments as I am working on my debt-free journey. My credit card was declined in a public setting.

Let me paint the picture, I went to the Renaissance Fair with a friend of mine (yes I am a nerd and proud of it!). We took our dogs with us for pet weekend. We waited in line to purchase tickets for about 20 minutes.

Finally, we get to the front, with a long line of people with their dogs behind us. The cashier swiped my credit card then kindly declined it.

I started freaking out a little because this credit card is linked directly to my bank account. I knew for a fact there was money available.

What the heck was going on?!?

So I pulled out the only other credit card I carried feeling the embarrassment heat my face. The cashier kindly declined that card as well, “This card is expired ma’am.” the cashier told me.

I wanted to find the darkest deepest hole I could find to crawl into. I use my backup credit card so rarely anymore that I didn’t notice it had expired in March. This is now, what, September?

Thank goodness for my best friend. She spotted me the entrance fee and we went about our day.

Well, I was secretly worried about what the issue could be while we looked through the vendor booths.

Reasons Why Credit Cards are Declined

Did you know about 12% of Americans experienced their credit card being declined in 2017? Below are the most common reasons why:

1. The credit card is over its limit or the bank account has insufficient funds.
2. The card is expired (can happen if you don’t use the card often)
3. Fraud (someone maxed out the card or your account information was involved in a data breach)
4. Your bank is running a banking system update. This will lock everyone out of their system until the update is complete.

I called the number on the back of my banking credit card. I found out my card had been involved in a data breach.

A store I shopped at had their system compromised and someone could have my credit card info.

In order to protect me my bank immediately turned off my card and issued a new one. I bank at a small credit union so their communication isn’t the best.

A heads up sure would have been nice!

I ran into the expiration date issue with my other card because I moved during the month the card expired. The replacement went to my previous address.

Since I hadn’t used the card in over a year at that point I didn’t realize it was expiring. So I wasn’t worried about updating my address with Chase just yet.

My Solution to Prevent This in the Future

I recommend keeping at least $100 in your wallet in case this happens unexpectedly. What if I had been at the gas station without enough fuel to get home? I don’t even want to think about it!

If you are someone who would be tempted to spend it on a splurge purchase. Keep the funds in an inconvenient place in your car for emergencies.

Don’t leave these funds at home, the entire point of this is to bail you out of a tight situation and help you survive until the issue is resolved.

Know Your Situation

Here is why I say this, $100 will last me 2 weeks. I drive a vehicle with a diesel engine. It only costs $32 per month to fill my tank so I’m covered there. It also only costs my household $30.50 per week for food.

Should I not have access to a working credit card my two most basic needs are covered with $37.50 remaining.

The emergency amount you keep in cash should cover these two basic needs.

Learn now, how long a tank of fuel lasts for you along with how much it costs per week to feed your family.

Try to plan on this emergency cash to last you at least 2 weeks.

Keep in mind, these funds are for emergency situations only! If you are constantly going over budget this solution will not work very well for you.

I know trying to get out of debt isn’t fun but the trick behind it all is to figure out how to prevent situations such as this one from derailing your progress.

Remember, you are not alone!

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