At O1ne Mortgage, we prioritize educating our clients about financial matters to help them make informed decisions. One such topic that often confuses many is the concept of credit card holds. In this article, we will delve into what credit card holds are, how long they last, and how you can manage them effectively. For any mortgage service needs, feel free to call us at 213-732-3074.

What Is a Credit Card Hold?

A credit card hold is a temporary reservation of a portion of your available credit by the card issuer. This hold can limit your ability to make new purchases until the hold is released. The most common type of credit card hold is an authorization hold, which occurs when a business verifies your card before completing a transaction.

How Long Does a Credit Card Hold Last?

Typically, a credit card hold is removed once the transaction is approved. Most authorization holds expire within a few minutes to seven days. However, some holds, such as those from hotels, car rentals, or cruise lines, can last up to 31 days. For online purchases, the hold may be released when the item is shipped.

Can You Get a Hold Removed?

If an authorization hold is lingering and tying up your available credit, you can request the merchant to remove it, especially in cases of duplicate authorizations. Alternatively, you can make a payment or request a credit limit increase to free up some credit. For holds due to missed payments, making the overdue payment will typically remove the hold.

Will You Get Your Money Back From a Hold?

An authorization hold does not mean you have been charged; it simply blocks a portion of your available credit. Once the hold is released or reversed, your credit will be available for use again. If you have any questions about authorization holds, contact your card issuer for clarification.

Managing Credit Card Holds

Understanding the types of transactions that trigger a hold can help you prepare for having a portion of your credit blocked. Consider carrying a backup credit card to use if authorization holds cause issues. A cash back credit card can be a good option for flexible spending and earning rewards.

Contact O1ne Mortgage for Your Mortgage Needs

At O1ne Mortgage, we are committed to helping you navigate your financial journey. Whether you need advice on managing credit card holds or are looking for mortgage services, we are here to assist you. Call us today at 213-732-3074 to speak with one of our experts.