If you travel frequently, you no doubt have had a run in with a credit card block. Blocking a portion of your available credit is a legal practice used by hotels and rental car companies. They put a hold on anticipated costs that you may incur while staying in a hotel or using a rental car. It is standard practice, but at times it can cause a few headaches.
It is good to be aware of credit card blocks to avoid some pitfalls. The two most common both involve your credit limit.
The number one hassle with a credit block is it prevents you from using some of your available credit balance. If you are on a grand vacation or business trip, the last thing you want to do is embarrass yourself with a credit denial at an important dinner. If you regularly carry a credit card balance close to your limit, a block may prevent you from using that card during your trip.
If you are worried about your available credit with a block, it is perfectly acceptable to inquire with the company how many dollars they will hold. This will help you better plan your use of the credit card for other items. It can also be beneficial to use one card for blocked expenses like hotels and rentals, and a different credit card for other costs.
If you do use multiple cards while traveling, you will want to watch out for common pitfall number two. That is the mistake of paying your actual bill with a different card than the one you used at registration. The credit card you make your reservation with or use at check in is the one where the block is created. If you use a different card to pay up, the first credit card company doesn’t erase the block. Therefore, there can be a delay and possible hassle to get that credit hold removed. It is easiest to use the same credit card for both registration and actual pay off.
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