What Does Restricted Credit Card Mean?

A restricted credit card means the card issuer has limited or temporarily suspended your ability to use the account. Your purchases may be declined. Cash advances may also be unavailable.

This can happen because of suspicious activity, missed payments or problems with your account. A restriction does not necessarily mean the account has been permanently closed.

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Why Would a Credit Card Be Restricted?

There are several reasons an issuer may restrict a credit card.

Common reasons include:

• Suspicious or unusual transactions

• Missed payments

• Reaching or exceeding your credit limit

• Identity verification issues

• An expired or unactivated card

• Account security concerns

A restriction may be used to protect your account while the issuer investigates something unusual.

What Happens When Your Credit Card Is Restricted?

You may not be able to make new purchases.

You could also lose access to:

• Cash advances

• Online purchases

• Recurring payments

• Certain account features

You still owe any existing balance. Interest can continue to apply to unpaid balances.

Is a Restricted Credit Card the Same as a Closed Card?

No.

A restricted card is usually still an open account. The issuer has temporarily limited what you can do with it.

A closed credit card account has been cancelled. You can no longer use the account for new purchases. You are still responsible for paying any remaining balance.

Does a Restricted Credit Card Affect Your Credit Score?

The restriction itself may not directly lower your credit score.

The reason for the restriction could affect your credit.

For example, missed payments can hurt your credit history. A high balance can also affect your credit utilization.

A restriction caused by suspected fraud may not affect your credit score if there is no negative account activity associated with it.

How Do You Remove a Credit Card Restriction?

Contact your card issuer.

The customer service number is usually printed on the back of your card. You may also be able to contact the issuer through its mobile app.

The issuer may ask you to:

• Confirm a recent transaction

• Verify your identity

• Make an overdue payment

• Reduce an outstanding balance

• Update your personal information

The solution depends on why the restriction was placed.

What If You See a Transaction You Don't Recognize?

Contact your card issuer immediately.

Do not approve a transaction if you did not make it. You may also want to temporarily lock the card through your banking app while the issue is investigated.

Canadian cardholders have protections for unauthorized credit card transactions when the applicable requirements are met.

How Long Does a Credit Card Stay Restricted?

There is no standard timeframe.

A simple fraud alert may be resolved after you confirm your identity or verify a transaction. Other account problems can take longer.

The fastest way to find out is to contact the card issuer and ask why the account was restricted. Once the underlying issue is resolved, the issuer can tell you when your card will become available again.