How Does a Hold on Credit Cards Work?

Video Transcript

"This is Patrick Munro talking about how does a hold on a credit card work? A hold is a term used in the credit card industry when an individual who has a credit card with a credit limit that individual has superseded their limit and they go to take out more purchases and the credit card company is alerted on line that they have exceeded their limit. What will then happen is the charges will be denied and the consumer will not be able to receive the credit charges and will not be able to receive the goods or services until they pay down the credit card. This is for the protection of the consumer as well as for the protection of the bank as well and the term hold is being used more and more often as people get into financial stress so it is important for you to keep your balances on your credit cards manageable and low. This is Patrick Munro talking about the technical nature of a hold in the credit card world."