What Does It Mean if My Credit Card Is Restricted?

Finding out your credit card is restricted can be frustrating, especially when you need to make a purchase.

Here's what you need to know about restricted credit cards and what to do about it.

What Does "Restricted" Mean?

When a credit card is restricted, it means your card issuer has limited or blocked your ability to use the card. You may be unable to make new purchases, withdraw cash, or complete transactions, though the specific restrictions can vary.

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KOHO's Credit Building offers a safe way to build credit without the risks of traditional credit cards or lenders, helping you achieve the same goal: a stronger credit history.

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Common Reasons Your Card Gets Restricted

Missed or Late Payments
If you've fallen behind on payments, your issuer may restrict your card until you catch up.

Suspicious Activity
Unusual spending patterns or potential fraud can trigger automatic restrictions to protect your account.

Credit Limit Reached
You've maxed out your available credit, leaving no room for new purchases.

Expired Card
Your card has passed its expiration date and needs to be replaced.

Account Closure
Either you or your issuer has initiated closing the account.

What to Do Next

1. Contact your card issuer immediately to understand why your card is restricted

2. Resolve the issue by making required payments or verifying your identity

3. Monitor your account regularly to avoid future restrictions

Take Control of Your Financial Future

Dealing with a restricted credit card can be a wake-up call to reassess your financial habits. While most restrictions are temporary and fixable, they highlight the importance of staying on top of your payments and managing credit responsibly.

Don't let this setback define your financial journey. Use it as an opportunity to build stronger money management skills.

^{¹Based on users with a starting score of 500 or less and who signed up for credit building in October 2024. Credit Building is not a credit repair tool and does not guarantee an improvement in credit score. Credit scores are based on complex models involving a variety of factors. Consistent on-time payments help improve scores and missed or late payments may cause credit scores to decrease. Outcomes may vary among users.}