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Credit Card Declined Despite Available Funds

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Created on
May 5, 2023


What’s Inside

A credit card being declined can be embarrassing. Moreover, it can leave you anxious when you know there is money in your account. Such cases are common and usually not about your bank balance. The message, ‘credit card declined’ can also be common in other situations. So when your card is declined, do not freak out and take a deep breath. 

Here are five reasons your credit card is declined with available credit and what you can do about that.

Credit Limit

The most common reason could be that you’ve maxed out your card. Credit limit refers to the money your issuer is ready to lend you. Your credit limit could be low if you are new to using credit cards. If you’ve reached the limit, pay off your debt and consider getting the limit extended. 


Attempting to transact in a foreign city could lead to issues with your credit card lender. When your credit card is used in a drastically different location than it was issued, your issuer may assume it was stolen. They may lock your account to prevent transactions from going through. So, if you’re travelling, inform your card issuer in advance. 


If you’re making a transaction that does not match your usual spending habit, it could be flagged as fraud. It is another security measure to prevent unauthorised usage of your card. In such cases, notify your bank of your big purchase. You could also request an increment of credit limit so the big debt doesn’t affect your credit score. 

Incorrect Payment Information

Entering incorrect payment information is more common than you would imagine, especially when you consider errors like a fat finger error. To avoid such cases, check your card information once gain. It is also possible that you’re mixing the payment information of two cards. So, it is better to review your information before finalising the payment. 

Missed Payments

If you’ve missed paying off the debt, you might be unable to use the card. This is more common if you have a history of missed payments. Missed payments also negatively impact your credit score and reduce your ability to qualify for other credit cards or better loan rates. So set up a notification or autopay system to pay off the debt punctually.


Besides the reasons mentioned above, it could be that your bank did not authorise the transaction because your card information was leaked. In such cases, banks want to protect your card by freezing all card activities. 

If you are worried about security, you might want to consider signing up for credit cards such as the one Fi Money offers. Fi has partnered with Federal Bank to provide a safe credit card and rewards you based on your spending patterns. Join the waitlist to get your hands on the card today.

Frequently Asked Questions

What happens if a credit card declines your transaction?

When a credit card declines you, the transaction doesn’t go through and your purchase attempt fails. If your credit card has declined and you are unsure of the reason, it is best to reach out to the issuer to find out the reason. In the meantime, you could use a different payment method to make the payment.

What is the meaning of credit card declined in HDFC?

A credit card declined in HDFC means the bank has refused to authorise the transaction. You can contact HDFC customer support to find out the reason.


Fi Money is not a bank; it offers banking services through licensed partners and investment services through epiFi Wealth Pvt. Ltd. and its partners. This post is for information only and is not professional financial advice.
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