For most people, even when they know there is enough cash in the bank, they may still cringe a little with a quickened heart beat when turning their debit card over to complete purchase transactions in a public place. There is always a little fear that something might go wrong and cause an embarrassing situation. When it comes to credit cards, even when nothing is seemingly amiss, there is a still a chance you may be on the receiving end of some bad news in a public manner.
Here are some of the more common, potentially embarassing credit-related situations that can arise when making purchases on your cards. Not all of them are directly your fault but can still be embarrassing and frustrating. You can use the following tips to help you deal with each situation:
The Big Decline
It can be a heart-stopping moment when the pleasant cashier turns suddenly condescending as he/she returns your card and tells you that the card has been declined. There are a few reasons this can happen including you are maxed out on your credit limit, your card has been flagged for fraud, or there is a problem with the credit card processing system.
How to Deal: Remain cool and collected. Provide an alternative source of funds to complete the purchase if one is available. If you are completely stuck without a back up plan, offer sincere apologies and find a quiet place to contact your creditor. Hopefully you didn’t try to use your card knowing your are at your limits but if you did you might be able to get your credit card provider to hook you up with the opt-in for over the limit transactions. If you are genuinely flabbergasted your card was declined, contact a company rep and ask for the reasons behind your card decline. If the situation was a mistake, you should be able to rectify it over the phone and return to the cashier with further information based on what your credit provider told you. It can be incredibly embarrassing for you but know that the situation happens all the time. Do your best to remain upbeat and polite. If you overreact, not only will you look bad for the card fiasco, you’ll just gain the reputation for being an ass with no credit.
The Bad Credit Turndown
If you have applied in-person for a loan, line of credit, or other financing arrangement only to be turned down because you have poor credit scores, it can be disappointing and embarrassing. Now you’ll have to find other ways to access the money you are in need without relying on your credit.
How to Deal: Ideally, you should have already checked in with your credit score well before you completed the application or sought out an appointment with a lender. There is not much to do in this situation unless you are certain your credit is top-notch. The only way out with dignity is to not blame the lender for the situation. If you start acting like a jerk, you are only making the situation worse. Instead, you might consider asking for advice of the financial representative you are speaking with for what needs to improve in your credit history. You may also want to find out if there are set standards that you can set your sites on for the future. If you feel strongly you are being denied for the wrong reasons, you might want to further discuss your financial stability, long employment history and your previous hard work at improving your finances and eliminating debts. Smaller financial institutions may be willing to work with you under certain conditions.
The Dreaded Credit Check
There may be occasions outside of the financial world that requires a credit check including renting homes, applying for jobs, and even getting insurance quotes. It can be difficult to sign your approval for the credit check but in some cases, the check is mandatory and unavoidable.
How to Deal: Sometimes people can spring credit checks on you without enough warning for you to work on improving your score or cleaning up your history, as is the case with job applications or insurance quotes. There may be little you can do other than prepare an honest statement about your past financial hardships. If a job or quote is totally reliant on your credit score, you may just have to accept the fact you are not going to be the chosen candidate for employment or that you will have to pay a higher insurance rate. After surviving the situation, it should be a strong motivator to refocus on your credit situation as a whole and make every effort to repair your credit as efficiently as possible.
Unavoidable Credit Collections
Despite your previous financial hardships, you are finally in a place where you can deal with money issues in a more effective manner. Then, when you least expect it, you get a collections call on an old debt and the collection practices get more aggressive in a short period of time. Even worse, the creditor you owe has issued a garnishment of your wages and now your employer knows about your problems.
How to Deal: Facing up to your debts is the first step in getting back on track. The chief thing to remember now is that millions of people are facing financial issues thanks to the economy and the shaky employment situations of the present day. If you feel obligated to offer an explanation to your boss, keep it simple and express that you have had money issues in the past but that you are working on your finances. If it’s the debt collectors you fear, start by getting the collector to send you proof of the debt you owe. If you validate the debt, take the next step to negotiate repayment of the debt on a timetable you can afford reasonably. Don’t ignore the collection calls. Instead get proactive about resolving the situation and keep moving forward with your goals of debt elimination and better credit.
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