Credit cards make our life easier and it is lighter to carry around. However, we have to also be careful with our credit cards especially with fraud and theft on the rise these days.
You might encounter these issues with your credit cards in the near future and it is not to be taken lightly or you might lose more than you think.
8 Common Credit Card Problems and Steps to Fix Them
1. Lost Your Credit Card
It is common to lose your wallet these days whether to theft or carelessness. However, you might be surprised at how quick a person can use your credit card to exploit your finances if you do not take immediate action.
The culprits can swipe at stores or branded outlets to wipe out your credit so they can sell those items later on.
What to do: Contact your bank immediately to eliminate the stolen card and request for a new one.
2. Unknown Transactions
Here’s a reminder: Remember to monitor your credit card transaction regularly so you can identify any unknown or suspicious transactions and take action immediately. Fraud or identity theft can occur when the thieves somehow get your credit card number when you were not paying attention and used it to shop online.
Most banks will send an SMS to notify every transaction by a credit card or debit card, hence, pay attention to the SMS to avoid any fraud or theft case.
What to do: Contact your bank immediately and verify the transaction. If you did not conduct the transaction, you should provide the bank information such as evidence or proof to show that you were not in the shop or outlets when the transaction was made.
3. Credit Card Is Declined
If your credit card is declined at any shop or digital sites, it is possible that you have not activated your credit card. However, there are other possibilities such as malfunctioning chips or an exhausted limit. You must find out the real problem behind the malfunction so you won’t be stuck or confused when you need to use your credit card again.
What to do: Check if you have reached your credit limit. If not, visit the nearest bank branch and request for a check on your card. You will usually get a faster solution if you visit the bank branch.
4. Erroneous Charges
If you experience an error in charges like double charges or a wrong value from your recent transaction using a credit card, you must ask the outlet or shop to void the bill if it is within the same day. If it has been more than a day, you will need to keep the receipt and contact your bank to take further action to correct the transaction. Everyone makes mistakes including retail stores and machines.
What to do: Keep your receipt for at least one week. Check your credit card statement after every transaction (which usually takes one day to update) so you can take action early if necessary.
5. Incorrect Details on Your Card
When you have incorrect data on your cards, such as a misspelt name, most retail stores are likely to refuse to take your credit card as it appears dodgy. To protect yourself in the future from identity theft cases, you need to ensure all the information is correct on your credit card.
What to do: Always check your information on the card when you receive a new credit card. Contact the bank or visit the branch nearby for immediate correction if applicable.
6. Receive A Bill When Credit Card is Not Activated
This is mostly a fraud case where someone could have broken into your mailbox and may have stolen your credit card which could hurt your credit badly if you do not respond immediately. It usually takes around two weeks to receive your new credit card. When you do get it replaced, remember to activate your credit cards or keep it in a safe place to avoid fraud or theft.
What to do: Contact your bank right away and tell them every detail of your encounter. Stay calm and follow the instruction from the customer service team. Usually, they will verify your information and request for your permission to cancel the card so they can send a new one. Remember to ask them to void the transaction that was made.
7. Overwhelming Credit Card Debts
This might not be a fraud or theft case but the impact is just as huge as getting one. Many Malaysians continue to underestimate the power of interest rates (18% for most credit cards) resulting in piles of huge debts. This is a huge setback for those who seek to achieve financial freedom or certain goals such as buying a house.
Did you know 12.8% of Malaysia’s credit card holders are not even paying the minimum 5% outstanding payment? According to Statistic Department Malaysia, Malaysians have a total credit card debt of RM36.9 bil as of this year and 835 of them have declared bankruptcy because of their inability to repay debts.
What to do: Stop spending recklessly and start looking at ways to consolidate your debt by starting from the one with highest interest charges (credit card usually). Take advantage of debt consolidation personal loan or balance transfer plan to cut down your debt.
8. Your Credit Report Carries Inaccurate Information Of Your Credit Card Payment/Outstanding
If your credit report does not project the exact information such as the outstanding amount or payment pattern, you must contact the credit agencies immediately (CCRIS and CTOS). If the wrong information persists on your credit record, you may suffer from not being able to apply for a new loan or credit card in the future.
What to do: Contact the credit agencies to request for a correction. Provide your bank statement and any other documents to support your claims.
If you have any question regarding to your credit card, please drop them in the comment section below!
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