Not sure why your Clearpay credit limit was decreased?
Looking for an explanation for why your Clearpay credit limit is so low?
If any of these questions have been on your mind, you have come to the correct spot. In the later sections, you’ll find detailed answers to these and other frequently asked questions.
Using Clearpay, customers may make purchases without having to pay in full immediately. A down payment is not required under their BNPL plan. The remaining sum is divided into three equal biweekly payments.
Why has my credit limit been reduced on Clearpay?
Short Answer: You may have had your credit limit lowered for reasons including but not limited to a new account, late payments, declined purchases owing to insufficient money, and excessive open orders.
1. New user
This is the most typical explanation. New users who attempt to utilize Clearpay more than once will have their requests denied. Clearpay customer history will be used to determine your spending limit. The Clearpay spending limit is lower for new users than for those who have been using the service properly for some time.
2. Missed Payments
Clearpay may lower your credit limit if it notices a pattern of payments being skipped or paid late. This is because it may conclude that you are having financial issues. Your previous payment record with Clearpay is an essential component that is taken into consideration when determining the maximum spending limit for your account.
3. Rejected purchases
If your Clearpay balance is insufficient to cover the whole amount of your order, the transaction will be rejected. One strategy to keep the credit limit from becoming lowered is to avoid making any purchases that may cause a reduction. To do this, it is recommended to first verify available funds in an account before making any transactions.
Check that the credit card you want to use has sufficient money to handle the first payment. In order to lessen the effect of debt on the consumer, Clearpay also imposes additional limitations on accounts that use credit cards rather than debit cards.
4. Several open orders
Too many active purchases may cause your credit limit to be lowered. Clearpay will notify you through text message before they charge your account. Ensure that sufficient funds are available in a designated account to cover the upcoming bill.
Verify the current order count and whether or not you’ve reached your spending limit. You may not be able to place any new orders or get a higher credit limit if you already have too many pending transactions.
FAQs
1. Does Clearpay have a spending cap?
Yes. Everyone who signs up for Clearpay has a predetermined credit limit. This limit starts off modest (keep in mind that Clearpay doesn’t pull your credit score, therefore it has no clue how careful or reckless you are with funds), but it may be increased rapidly by on-time and complete payments.
Final Words
Get in touch with customer care if you see your credit limit has been lowered. The greatest way to stop a problem from escalating is to talk about it. Clearpay’s customer support team should be able to tell you why your account’s credit limit was lowered after you reach out to them.
Having earned a Bachelor’s degree in Commerce from Ravenshaw University, with a background in Accounting and Finance, Akshita Pattanayak contributes to UniTopTen by writing clear and concise articles based on Finance-Tech. With more than a hundred fin-tech related articles, she hopes to educate people about how banking and payment apps function.