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5 Times a Credit Card Issuer Can Freeze Your Account

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Advance Personal Finance

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One of the most embarrassing things that can happen to someone when they are shopping is to have their credit card declined. It’s even worse when there is a line of people behind them at the checkout. Sometimes it might be because there is an issue with your cards magnetic strip, but other times it’s because the credit card issuer has decided to freeze your account.

Here are five times when a credit card issuer might decide to freeze your account.

Fraud Protection

One of the most common times that a credit card issuer might decide to freeze an account is when they noticed some type of unusual purchase behaviors. This might come from a purchase made that is much more than the normal amount. It might also come if a purchase is made in a different state or country. To help avoid this problem be sure to call the number on the back of your credit card if you are going to be traveling away from home or making a larger than normal purchase.

Exceeding Your Credit Limit

If you have be spending a lot with your credit card and you hit your credit limit then there is a good chance that your card issuer will freeze your account so that no more purchases can be made until your balance has been paid down. There are certain credit cards that might allow you to go over your credit limit and offer you a type of overdraft protection. The problem is that fees will be added to your account and this should be avoided at all costs.

When You Are Under Financial Review

It’s not unheard of that a credit card issuer can put a cardholder under financial review. The purpose in this is for the issuer to be able to verify the cardholders current income to make sure they are still a good credit risk. During a review there is a good chance that you will be unable to use your account for purchases. After a cardholder passes the financial review the issuer will unfreeze the account and they will be able to use it again like normal.

When You Default on Your Account

If you decide to stop paying your credit card account then you can expect your issuer will end up freezing your account. This probably won’t happen after your first missed payment and maybe not even after your second, but it’s surely to happen after a third. Once you pay your account you should have your card active again. Just be careful because the issuer might decide to close the account altogether for failing to make payments.

The Primary Cardholder Closes His Account

If you are an authorized user on a credit card account and the primary cardholder closes the account then your card will be frozen. This happens a lot of times in employer/employee situations and also within families.


*Editorial Note: Any opinions, analysis, reviews, or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer.

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