Credit Card Blocking

 

Credit Card Blocking

Credit card blocking

Eiko and her credit card (Photo credit: eikootje)

Beware of credit card blocking when you check into a hotel or rent a car.  The clerk gives your credit card issuer an estimate of what the total bill will be and your available credit is reduced by his estimate.   The credit card issuer places a hold on that amount. Credit card blocking is easy to overlook.  If you are a little light on cash and credit it can cause you real problems if you’re caught unaware. Many times the estimate given is very high and you may be distressed to find you have reached your limit while far from home without realizing why.

Minimizing credit card blocking problems

To get rid of credit card blocking in a hurry make sure you pay with the same card when it’s time to settle up!  The excess hold should disappear in about a day.  Otherwise you may find yourself with a significant part of your credit unavailable for 2-3 weeks.  Credit card blocking is the last thing on most people’s minds when they are making reservations.  This is why it’s so distressing when it interferes with your plans.

Bottom line?  Ask how much will be subject to credit card blocking and for how long when you present your card.  Those with high credit limits never really realize or care about this practice.  If you haven’t had a credit limit increase for some time ask for one.  The best time to ask for a credit limit increase is when you don’t really need it.  It’s a lot like how much easier it is to find a job when you already have one.  Or easier to find romance when you are happy with the one you have. With a higher credit limit and low debt to available credit balance you won’t even notice when credit card blocking occurs.

 

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After practicing law for 37 years Edward F. St. Onge, Sr. now devotes all his time to helping consumers achieve a high credit score with amazing speed. Learn the counter-intuitive secrets to credit scoring through his down to earth instructions backed by extensive knowledge of the laws and trends. All of the latest tricks and techniques that they don't want you to know now at your disposal. At last a level playing field for the consumer!

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