It’s time to pay the dinner bill and the waiter returns with news that your credit card has been declined. Ouch! Even a cash advance is not going to help you out of this one. It would help if you have more than one credit card in your wallet or maybe some cash tucked away for emergencies. If you have cash in the bank and a debit card with you, this will get the dinner bill paid. It may get you scurrying to replenish your bank account, but at least you made it out of the restaurant as paying customer.
A cash advance helps with many financial emergencies.
Financial emergencies come in all shapes and sizes. A declined credit card may pinch your ego, but it may open your eyes to a lurking problem.
- It could have been a glitch in the processing. If you know the credit card has money available and there are no other problems with the creditor, ask the waiter to swipe the card again.
- Especially when out of town or state, a credit card company protects the account holder by declining it. A quick phone call to the creditor to verify it is you making the purchase is the solution. It is nice to know that some creditors are watching out for your best interest.
- A creditor may deny new purchases if there is a late payment still pending. This may not mean that the account has been canceled, but more so frozen until the payment status is rectified.
- Without warning, a creditor has the right to cancel your account. This does not occur without just cause. If you believe it was based on error, make a call to clear up the problem.
- Changing spending habits could alert a creditor to freeze your accounts. When your card is typically used for certain purchases and then there is a swift change in types of purchases. This can be cleared up with a phone call to the security department.
Credit card companies do have the right to cancel your account due to late payments or even if your credit score drops. If you are going to be using a card which hasn’t been toughed recently, it would help to make a call and check the overall status before you head out the door. If you do this ahead of time, there may be time to apply for a cash advance or withdraw money out of savings. It also may behoove you to cancel the night out, especially if there is not spare money available. Using money geared towards other bills could create more financial difficulties later. Cash advances should never be used for extras, especially if your budget does not have room for juggling additional costs.
Clear and concise communication to the creditor will be your best avenue for clearing up any type of error. If the error was due to another creditor reporting information, deal with the problem immediately. Negative reports to the credit bureaus can have serious impact on your available credit. If the problems do stem from your mismanagement of the accounts don’t fall back on cash advances to rectify them, get help. There are many free credit counseling agencies available to prevent embarrassing moments as a waiter returning the bill unpaid.
