Question : What happens if credit blocks exceed your credit limit?
When you check into a hotel, they ask to see a credit card and put blocks on it to cover incidentals. This many might not ever even be charged, but it is unusable during your stay to insure the hotel is paid. What happens if the amount of money being blocked exceeds your credit limit.For example,You have a $500 credit limit, and the hotel issues $600 dollars to be blocked in your credit line.(numbers are entirely made up, but you get the idea)Thanks!
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All Answers:
Answer #1
Since it's just a "hold", you didn't actually goover the limit. I am surprised that the cc companyallowed the hold to go over. No worries, youshouldn't be charged the dreaded over the limitfee. Just have a different way to pay for stuff.
- answered by Randy
Answer #2
You point out an area many people have no idea ishappening. If they approach your credit cardlimit with the hold, you may find subsequenttransactions denied.Unless you have arrangementsfor going over your limit, they won't be able toput a hold greater then your limit.Consumers needto understand that a hold on a credit or debitcard when you arrive "is for much more than youthink your bill will be when you check out," saysEd Mierzwinski, consumer program director for theU.S. Public Interest Research Group. "Most peoplearen't totally maxed out on their credit cards, sothey don't notice a hold. But people are closer tozero in their banking account" and don't realizethey can lose access to money they haven'tactually spent.[NOTE: this may be critical with adebit card.]Releasing holds can take some time,Brown says. First, a hotel accounting departmentmust release a hold; then a bank in thecard-processing chain must remove it. "Hotels areunable to release (funds) themselves" and can'tcontrol the timing, he says.
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