Almost all credit cards have a credit card expiration date. This can keep your card safe and usable, as well as your credit card company will send you a new card with the most up-to-date technology at the due date. Hanfincal will tell you what happens after this date and what you should do in this article.
1. What is a credit card expiration date?
A credit card expiration date is a two-digit month/year date that appears on the front or back of the card. Credit cards are valid until the end of the month specified on the card.
The expiration date on a credit card indicates when the card is no longer valid. You shouldn’t be able to use your credit card after it expires because issuers deactivate your card when it reaches the expiration date.
Card expiration dates are usually written in two numbers, with the first indicating the month and the second showing the year. A credit card’s expiration date, for example, could be 11/24, indicating that the card is valid until the last day of November 2024.
2. Why do credit cards expire?
- Prevent fraud: This date provides an additional data point that can be checked to ensure you are the legitimate user and the card information is valid, whether you’re using the card in person, over the phone, or online. When combined with the CVV code on the back of a card, the expiration date prevents people who only have access to the credit card number from making fraudulent purchases.
- Wear and tear the physical card: The card itself, not the credit card account, expires. The card’s chip can wear out, and the plastic can break. Therefore, your credit card company will send you a new card at regular intervals—usually every three years.
- Re-engage with consumers: This date gives credit card companies a built-in reason to contact you, such as to remind you of an unused card you’d forgotten about or upsell you on other products and services.
- Other reasons: These can include providing a marketing opportunity for the card issuer as well as the opportunity to periodically reevaluate the terms of the credit card based on your current creditworthiness. Card companies may also use the expiration date to send you a new design or logo card.
3. What happens when a card expires?
You will receive a new card. Most credit card issuers send replacement cards to cardholders from 30 to 60 days before the expiration date. The new card will add a new expiration date and CVV security code. Moreover, the credit card number is usually kept the same unless the account is upgraded or the product is changed.
On the other hand, some issuers reevaluate their customers’ credit as their expiration dates approach, whether or not to send you a new card, accept a higher credit line, or decide not to extend your account.
How long will you be able to use the expired credit card to make purchases? The card will usually stay active until the last day of the month expires, but it keeps working for months after that, primarily if it’s being used for automatic monthly payments. Expired cards are used in roughly 1.4% of all attempted credit card transactions, with 34% approved.
4. What to do when your credit card expires?
4.1. Confirm that the credit card terms are still the same
The credit card issuer will send you a document outlining the card’s terms and conditions when you receive your new credit card. These may have changed since you initially applied for the card or since it was last renewed. Confirm that all the terms and conditions remain the same before accepting your new card or at a level you can accept and afford. Your job is to check your payment due date, credit limit, annual percentage rate (APR), late fee, and penalty APR, among other things (the rate you may receive if you pay a bill late).
4.2. Activate your new card
The issuer will send you a document outlining the card’s terms and conditions when you receive your new credit card. The card’s terms may have changed since you initially applied for it or last renewed it. Before using this card, activate it when you’re ready. This can be done through the issuer’s mobile app, over the phone, or on the issuer’s website. Finally, you should sign the back of your new card with indelible ink after it has been activated.
Moreover, you should handle your expired card by shredding it or cutting it into small pieces before throwing out an old credit card. If you have heavy-duty tools, you can destroy the card yourself or bring it to your card issuer’s local bank branch for disposal if one is available in your area.
In fact, you do not need to pay close attention to and be confused about your credit card expiration date. This is because your credit card issuer will notify you of a new alternative card 30 to 60 days before your current card expires. Keep in touch and let Hanfincal know if you still have questions about credit cards or need sound advice for your financial situation. We can work together to solve your problem.
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