Credit Card Expiration Dates

In addition to the long string of numbers that identify your account, you may have noticed another short group of numbers. These make up your card's expiration date. Most people never pay any attention to that date. You can be sure that the credit card network, however, is well aware of when your card expires. There are good reasons for that; several actually.

Primary Reasons Why Credit Cards Expire

The simplest reason credit cards eventually expire is that the magnetic strip won't last forever. While the plastic card is virtually unbreakable, the magnetic strip is more sensitive and will eventually wear out. When that happens, your card will no longer be readable by credit card terminals and ATMs and your card is effectively dead.

Cardholder security is another reason. This permits banks, stores and businesses to verify you are whom you say you are and that nothing has changed. With identity theft common these days, this is in your best interest. Some people have even had credit cards opened in their names and charges made without knowing anything about it. When the card expires, you'll be contacted and possibly warned.

The company may use the expiration date as a reminder that they are there. For those who use their cards infrequently, this can be a subtle reminder that it's in their wallet to be used.

Some institutions use expiration dates as a way to reconnect with cardholders. It also allows them to appear to care about their customers. They will send you a courteous reminder that offers you an opportunity to renew with your same comfortable friendly company. It gives the company and its users a chance to get together and discuss any banking issues or complaints customers may have.

The Expiration Date is Coming Up

It's really quite easy to renew your card. About 30 days before your current card expires, a new one will arrive in the mail, replacing the one about to expire. This works well when you're at home. If you're going to be traveling, take a look at your card before you go. If it's scheduled to expire before your return, call your bank. A new one can be issued before you leave town.

When your new card arrives, read the material that comes with it. It may include revised terms. If these terms are new, but not improved, contact the card company immediately. Do not use the card until you have received verification that the terms meet your approval. If the bank refuses, you can cancel the card.

If your credit is good, finding a new bank -- and credit card -- won't take long. Considering all the competition, comfort, history and service goes a long way in retaining old and gaining new customers.