Have you ever been told you were over your
credit limit, even though you knew you weren't? You were probably a victim of
credit card blocking!
If this happened shortly after you stayed in a hotel
or rented a car, the problem could have been "credit card blocking".
Use these FREE tips to avoid having this happen to you.
- What is "Credit Card" Blocking?
- How can Blocking be a problem?
- How can I avoid blocking?
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1. What is "Credit Card" Blocking?
When you use a credit or charge card to check into a hotel or
rent a car, the clerk usually contacts the company that issued your card to
give an estimated total. If the transaction is approved, your available credit
is reduced by this amount. That's a "block."
Here's how it works:
Suppose you use a credit card when you check into a
$100-a-night hotel for five nights. At least $500 would be blocked.
In addition, hotels and rental car companies sometimes
include anticipated charges for "incidentals" like food, beverages, or
gasoline. These amounts can vary widely among merchants.
If you pay your bill with the same card you used when you
checked in, the final charge probably will replace the block in a day or two.
WARNING! If you pay your bill with a different card, or
with cash or a check, the company that issued the card you used at check-in
might hold the block for up to 15 days after you've checked out. That's because
they weren't notified of the final charge and didn't know you had paid another
way.
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2. How can Blocking be a problem?
Blocking is used to make sure you don't exceed your credit line
before checking out of a hotel or returning a rental car, leaving the merchant
unpaid.
If you're no where near your credit limit, chances are blocking
won't be a problem. But if you're reaching the limit, be careful. Not only can
it be embarrassing to have your card declined, it also can be inconvenient,
especially if you have an emergency purchase and no available credit.
Additionally, under certain situations, if you do end
up going over your credit limit, you may incur "over-limit" fees from
your credit card issuer!
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3. How can I avoid blocking?
To avoid the aggravation of blocking, follow these tips:
- Consider paying hotel, motel, or rental car bills with the
same credit card you used at the beginning of the transaction;
- When you check into a hotel or rent a car, ask clerks how
much will be blocked, and how the amount is determined;
- If you pay with a different credit card or with cash or a
check, ask the clerk to remove the block.
In addition, when you choose a credit card, ask issuers how
long they block credit lines for transactions involving hotels, motels, and
rental cars. You may want to go with an issuer that uses short blocks.
If you've fallen behind on your
bills, especially credit cards, don't panic. You may have several good options
available to you. Your success starts by assessing your current situation and
finding a trusted service provider that is licensed in your state.
How iDebtAssistance.com Works:
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Prattville, Alabama
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