Credit cards have been around for a long time, and for a good reason. They’re convenient and valuable in a variety of situations. Many people don’t even realize that credit cards expire after specific periods of inactivity, a concept that seems weird to some people who don’t use credit cards very often! If you’re not sure what I’m talking about, here’s an overview of how expiration dates work with your credit card:
What is a credit card expiration date?
The credit card expiration date is the date when your credit card expires. It’s on the front of your credit card, which looks like 02/20.
Expiration dates are important because they tell you how long you have to use your card before it becomes invalid. For example, if you don’t use a credit card within its expiration period, it will be declined at checkout because it no longer works.
“Credit card expiration dates are typically printed as a two-digit month followed by a two-digit year. The last day of the month printed is the last day that you can use your credit card to make new purchases. If you try to make a purchase on the first day of the following month, the transaction will be declined,” explain SoFi professionals.
What happens when a card expires?
A card expires when the time limit on your credit card expires. When this happens, you may notice that your card stops working entirely. You might no longer be able to use it to make purchases or withdraw money from an ATM. That’s because your bank will no longer accept the expired credit card as payment for anything.
The same thing can happen if you allow too much time between using your card and paying off the balance each month, even if there are no other signs of trouble in terms of late payments or maxed-out accounts. If you fail to pay off at least part of what you owe before that grace period runs out, then all bets are off: Your bank will shut down access completely until things get sorted out again.
What should I do when my card expires?
If you want to keep your credit card open, call the company and ask them to renew it. That’s what most people do when their cards expire. If you don’t want to keep it open anymore, then you can have the card canceled by calling in. So if you have a lot of credit cards and only need one or two at any given time, then closing down some old ones will help make managing them easier for yourself (and other people).
However, suppose there’s any chance that something might happen with the account in question, such as unauthorized charges being made against it. In that case, canceling this account is not advised because doing so may result in a lower credit score than expected if no such issues were involved.
Why do credit cards expire?
The answer to this question is simple: credit card companies want to ensure you are still using the card. They don’t want to have unused cards. It costs them money, and they will lose money if you don’t use your credit card. Credit cards expire because they need to ensure you’re still a good customer who won’t default on their debt.
Ultimately, it’s important to remember that credit cards are meant to be used responsibly. For example, if you have a credit card, don’t let it sit in your wallet unused. Instead, use it regularly and pay off the balance monthly to avoid unexpected fees or charges later on.
