Did you know that most Frequent travelers know all about credit card blocking, many from painful first-hand experience?
Hotels post notices of their policy regarding blocking, usually in the form of an obscure plaque some clerks will point to when an inquisitive visitor checks in. Car rental companies rapidly recite their policy to callers wanting to reserve an SUV for the family vacation. Still, hundreds of unsuspecting consumers will feel the pain of credit card blocks every day. So what exactly are these blocks?
Credit card issuers, as a way to reduce their risk, can set aside or “block” an anticipated future charge. This block is not immediately charged to the account but it reduces the amount of credit available. Plus the amount of the block may be more than expected as the bank may add in additional estimated charges such as gasoline for a car rental or food for a hotel stay. Even a pay-at-the-pump transaction can cause a $100 block to be placed on a card. These blocks or “holds” can cause some rather difficult times if you unknowingly end up in the wrong situation.
The most logical way to avoid any blocking problems is to maintain a balance well below the usable limit of your credit card. Although this is prudent advice it may not always be practical considering the somewhat undefined amounts and timing of the blocks.Like many credit-related issues, knowledge and a little foresight can go a long way in preventing unexpected problems and expenses.
To get a full review of your credit and ways to help you stay ahead, schedule your consultation right now.