Should you call a credit card before a large purchase?

Should You Call Your Credit Card Issuer Before Making a Large Purchase?

When planning a major purchase, it’s wise to consider informing your credit card issuer beforehand. Making an unusually large purchase can raise red flags for your account due to atypical spending patterns. To avoid any potential issues, calling the customer service number on the back of your card can provide advance notice of your impending expenditure.

Why It Matters

Credit card issuers have fraud detection systems that monitor account activity for suspicious transactions. If you make a large purchase that is significantly different from your typical spending habits, your issuer may flag your account for review. This can lead to delays in processing your transaction or, in extreme cases, the account may be temporarily frozen.

Benefits of Giving Notice

By informing your credit card issuer about a large purchase, you can help them distinguish between legitimate activity and potential fraud. This can prevent any unnecessary delays or interruptions to your purchase. Additionally, it gives the issuer an opportunity to update your spending limits or provide any other necessary assistance.

How to Notify Your Issuer

To give advance notice of a large purchase, simply call the customer service number on the back of your credit card. Explain to the representative that you will be making a significant transaction and provide the following details:

• The estimated amount of the purchase
• The date and location of the purchase
• The name and contact information of the merchant

When to Notify

It’s generally recommended to call your credit card issuer before making any purchase that is significantly higher than your average spending. A good rule of thumb is to notify them if the purchase exceeds 10-20% of your usual monthly spending limit.

Conclusion

Calling your credit card issuer before making a large purchase is a simple and effective way to avoid any potential issues. By providing advance notice, you can help your issuer distinguish between legitimate activity and potential fraud, ensuring a smooth and seamless transaction.