In today’s world, you will be in trouble to find a consumer who does not have at least one credit card in your wallet. When used correctly, credit cards can be an excellent tool for building a solid financial future. However, a particular aspect of having a credit card that some consumers find annoying is the expiration date associated with it. There is a wide range of activities that can accompany an expired credit card. Here is a look at what happens when your credit card expires and the things you should look out for a smart consumer.
The reasons for expiration dates
There are a lot of different reasons for having credit card expiration dates. First, expiration dates are placed on credit cards for normal wear and tear. The magnetic stripe of the card can wear out and plastic can break. After a certain amount of time, your credit card company will send you a new card. The second important reason: fraud prevention. Whether you are using the card in person, by phone or online, the expiration date provides an additional data point that can be checked to make sure the card information is valid and you are the legitimate user.
Time to renew
Usually, renewing your account with your credit card company is quite simple. Many credit card companies send a notification and a new credit card in the month prior to the expiration date of your existing credit card. Other companies send a letter or email asking if you want to renew.
Confirm that the credit card terms remain the same
Before activating your new card, you will have to confirm that the credit card terms and conditions remain the same. Check that the April rate remains the same. Expiration dates, fees and penalties are also important elements that you will have to make sure you kept before you renew your credit card. Instead of being caught by surprise after you renew with your credit card company, get all the facts in black and white before signing.
The arrival of your new card
Your new credit card usually arrives one to three months before its expiration date. Before using your new card, you will need to contact your credit card company to activate it; Usually, the card will come with a label with a web site address or a number to call. Once you add the new credit card to your wallet, remove the old card and cut with a pair of scissors. The last thing we want is for your old credit card information to get into the wrong hands.
Unique opportunity to market new products
When a credit card expires, the credit card company has a great opportunity in the market for new products to its customers. As the customer decides whether to keep his old credit card or upgrade to a new product with attractive features, he or she will face many options. Before selecting any particular credit card, be sure to compare and contrast the different cards against your old one. By fully investigating the cards offered by your company, you will be fully prepared and know what to expect when that first bill comes into action.
The bottom line
Facing a credit card expiration date can be a confusing time for many consumers, but it is often not very worrying for many reasons. Credit card companies do not want to lose business. Therefore, when credit cards close to their expiration date, they begin to hear more and more from the company. This is a great opportunity for the company to remind you of all the products offered by the company and keep it as a loyal customer. Before signing on the dotted line, do your homework so that you are fully prepared to assume the financial responsibilities involved in the possession of a credit card. Akmad Rugi is now a full-time writer and former Analyst of Sampaguita Bank. He’s Risk Management Certified. Specializing in writing about financial literacy,