6 reasons your card is declined — and what to do when it happens

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A declined credit card transaction hardly ever sparks joy. On the contrary, you're more likely to feel a flood of panic and embarrassment when you discover your preferred method of payment has turned into a useless piece of plastic. Below, CNBC Select lists possible reasons your card can be declined and what you can do about them.

• You've maxed out your credit card
• You're traveling
• Your card issuer suspects fraud
• Your payment information is incorrect
• Your card is inactive
• You've missed too many payments
• Bottom line

If you've reached your credit limit, your card issuer is likely to decline any further transactions on your card.

This becomes a bigger risk as you approach your credit limit, thanks to the possible delays in how your issuer processes payments. When you make a payment, it doesn't post to your account immediately and might be pending for a few days. And your issuer might not replenish your available credit until that payment posts. This can result in you confidently swiping your card because you've recently paid your bill, but still getting declined because of the pending payment.

Additionally, some credit cards come with low credit limits to begin with. For example, if you're building your credit, a secured credit card like the Discover it® Secured Credit Card or the Capital One Platinum Secured Credit Card can be incredibly helpful. But if your security deposit was only $200, your credit line is most likely also $200. Such a minimal limit isn't hard to hit by accident.

If this has happened to you, the solution is simple: make a payment and wait for it to go through to increase your available credit. In the future, keep an eye on it and avoid getting close to your credit limit. In fact, the best practice is to use less than 30% of your credit line. Higher credit utilization can have a negative effect on your credit scores.

Using your credit card far away from home can result in declined transactions for a couple of reasons.

First: You're traveling internationally and a local merchant simply doesn't accept cards in your network.

For example, let's say you're on a trip to Eastern Europe. You're excited to try all the local foods, especially since your American Express® Gold Card earns 4X points at restaurants worldwide (on up to $50,000 per calendar year in purchases, then 1X). At the very first restaurant you go to, you hand your Amex to the waiter to pay for your meal. The waiter studies your card for a second, looking hesitant, but takes it anyway. The payment doesn't go through. What gives?

Credit cards in networks such as Discover and American Express aren't as widely accepted internationally as they are in the U.S. This may vary by merchant, but to avoid uncomfortable situations, make sure to also carry a Visa or Mastercard when you go abroad. Cards within these networks are more likely to be accepted around the world.

The second scenario can happen when you're spending money away from home. Whether you're in the neighboring state or in a different country, once you start charging your card in a new location, your card issuer might question whether someone has stolen your card. To protect your information, the issuer might lock your card. Calling your bank should quickly eliminate the problem.

This can seem annoying but the issuer is doing it for your financial safety. To prevent misunderstanding, it's a good idea to let them know of your travel plans in advance.

Speaking of fraud, traveling isn't the only time your credit card issuer can get suspicious. If you make a large purchase or go on a spending spree, the issuer might see this change in spending patterns as a red flag and freeze your account.

Communicating with your issuer should resolve this issue as well, however inconvenient this may seem. On the bright side, at least you know your financial institution is always on high alert protecting the cardholder.

When you're shopping online, you often need to provide your credit card information to make a purchase. If you get anything wrong, such as your card number or expiration date, your card will be declined.

Besides a typo, an incorrect address can trigger a failed transaction. For instance, you moved and informed your bank of the address change — but you have forgotten to update the stored payment information at your favorite online store. Now, when you're trying to check out, your card is declined.

If an online retailer declines your card, just double-check check that your payment information is correct. Review it carefully before proceeding with your purchase. After multiple failed attempts, your issuer might yet again become suspicious of fraud and block your card.

There are several reasons your card might not be active.

If it's a new card, you won't be able to use it until you activate it. If that's the case, simply follow the issuer's instructions to activate your new card.

Your transaction will also be declined if you try to use an expired credit card. If your card has expired some time ago and you still haven't received a replacement, get in touch with your credit card company and let them know.

Finally, your issuer might close your card altogether without your knowledge if you haven't used it in a while. To prevent this, use the card for small monthly charges such as a streaming subscription to keep it active.

If you know you've missed some credit card payments, this is probably the reason you're dreading to hear.

Yes, your bank can decline your transactions and freeze your account if you have a history of paying your credit card bills late.

You can potentially still complete your purchase. Call your card issuer, make a payment and ask them to let you use the card again.

However, constantly missing your due dates means you likely have bigger problems than being embarrassed at the checkout line. Missed payments can wreak havoc on your credit scores. Even worse, they stay on your credit reports for seven years. The longer you go without paying, the more your credit suffers.

The best strategy here is to prioritize getting on top of your budget and credit card bills. Ideally, you want to pay them off in full every month, but even making minimum payments can be a place to start. Sometimes, it can be challenging to keep up — especially if you have more than one card — but setting up autopay can help you ensure you always pay on time.

Having a credit card declined can leave you flustered. Many circumstances can lead to this outcome, some more innocuous than others. Most of the time, you can resolve the issue by contacting your credit card issuer. In other cases, you might want to work on your spending habits. Either way, it can be helpful to carry multiple cards in your wallet to always have backup.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every credit card guide is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of credit card products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best credit cards.

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