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A credit card has an expiration date for many reasons. These dates refer to the expiry of the card and not the card account. Some of the reasons for the existence of expiration dates are:
Several credit card providers notify you and provide you a new card well in advance of the expiration date on your current card. While the others will send you a letter or an email asking if you would like to renew.
Before activating your new credit card, it is important to confirm that the terms and conditions are still the same for the new card. It is also advised to confirm the interest rate that is charged to you is the same, along with other details such as the payment due date, the fees, and the penalties. You should get all your facts cleared rather than anything coming as a shock to you later. It is also good to be updated on the recent credit card offers.
When your new card arrives, before using it you will have to activate it. Typically, the card comes with a sticker that indicates the website or a number that you can use for activation. Once you put in your new card in your wallet, you should make sure to cut up your old credit card and discard it. This is important because no one wants the old card’s information to land in the wrong hands. Once you start using your new credit card, be sure to update the automatic payments that you have on your card to reflect the new card details.
The Bottom Line
It can be a little baffling when you come across an expiration of your credit card. Generally, there is not a reason to be worried about it. A credit card provider does not want to lose business, which is the reason behind you hearing from them closer to the expiration date. This gives the company the opportunity to remind you of all the credit card offers in order to keep you as a loyal customer. It is important to do your research before signing on the papers, this will help you get the best card for your financial needs and spending pattern.