Credit Card "Blocking"

If you stay at a hotel, motel or rent a car, you may experience credit card "blocking."

This is how it works. When you use a credit or charge card to check into a hotel, motel or rent a car, the clerk usually contacts your card issuer electronically with the estimated cost. If the card issuer approves the transaction, your available line of credit is reduced by this amount.

For example, if you use a credit card to check into a $100-a-night hotel for five days, at least $500 will be blocked on that card. If you are near your credit limit this could be a problem if you intend to pay cash for the hotel and use your credit card for other purchases. The block is generally good for as long as 15 days.

To protect yourself, consider paying for the hotel, motel or car rental with the same credit card you used in the beginning. If you pay for the purchase with a credit card other than the one originally used, ask the clerk to remove the block.

You may also contact your credit issuer and request your credit limit be raised.