What Happens When You Block a Credit Card
Blocking a credit card is a measure taken to protect yourself from fraudulent activities, but it also has several consequences that you should be aware of. This article will guide you through the processes involved when you block a credit card, including inactivity, fraud protection, notifications, replacement cards, and the impact on your credit score, as well as how to reauthorize the card.
1. Card Inactivity
When a credit card is blocked, it becomes inactive immediately. This means you will be unable to use it for online purchases, ATM withdrawals, or any other type of transaction. Your blocked card will no longer be authorized for use.
2. Protection Against Fraud
A major advantage of blocking a credit card is protection against unauthorized charges. If your card is lost or stolen, immediately blocking it prevents any further fraudulent activity. This safeguard helps to protect your financial security and reduces the risk of losing more money to fraudsters.
3. Notifications and Alerts
Most credit card issuers will inform you when a card is blocked. You might receive an email or a text message confirming the status of your card. These notifications ensure that you are aware of any changes and can take appropriate actions.
4. Replacement Card
In most cases, your credit card issuer will issue a new card with a different number and expiration date. This new card will effectively replace the old one. Make sure to update any recurring payments linked to the old card to ensure uninterrupted service. Your financial transactions will be seamlessly transferred to the new card.
5. Impact on Credit Score
Blocking a credit card does not directly impact your credit score. However, closing the account associated with the card can affect your credit utilization ratio and credit history. Reducing the available credit can temporarily lower your credit score until your credit utilization ratio improves.
6. Reactivation
Once a card is blocked, it cannot be reactivated. You will need to use the new card issued by your bank. If you need to use the old card again, you will have to contact your credit card issuer to request a reactivation, which may involve additional checks and verification processes.
Frequently Asked Questions
1. Cards Permanently Blocked?
When you block a credit card, it is temporarily blocked. The card is delinked from the account, meaning no transactions can be performed with it. However, the card is not permanently blocked, and you can request a new card from your bank. The bank will typically issue a new card with a new number and expiration date.
2. Can I Pay Interest in the Future?
If you have an active credit card account, you can still make interest payments or pay off your balance. However, once the card is blocked, you will need to use the new card issued by your bank to make any future payments. The blocked card will show as inactive and cannot be used for transactions.
3. Will Any Transactions Be Held?
No transactions can be performed with a blocked card. When you block the card, all transactions are prohibited. However, if you have made a payment with the card before it was blocked, that payment may still be processed, but no new transactions can occur until the card is reauthorized.
Conclusion
Blocking a credit card is an important safety measure, but it also involves several steps and processes that can affect your financial transactions and credit score. Understanding these steps can help you manage your credit card more effectively and minimize potential disruptions to your financial activities.
For any specific procedures or concerns, it is recommended to contact your credit card issuer directly. They can provide you with the most accurate and detailed information about your account and the steps required to block or unblock your card.