Why Do Credit Cards Expire?

Anyone who has a credit card knows that the card is going to expire at some point, but not many people know the reasoning behind the expiration date. Although it may seem like some kind of plot to help the credit card companies earn more money, there are actually some benefits that help the consumer as well. It is really a win-win situation for both parties because there are benefits to be found for both the credit card company and the customer. When it comes down to the facts, it makes a lot more sense to have cards that expire than those that do not expire.

why do credit card expiresFraud protection

The main reason that credit cards have expiration dates is for fraud protection. You will notice that a lot of times when you order something online you have to enter the expiration date for your card. This is an extra step in the confirmation process to make sure that the person entering the information is actually holding the card in their hand. It also makes sense because the card will be useless in a few years. This means that you will have a different card number, security code and expiration date on a regular basis. This helps to confuse the fraudsters even more, so you can worry about just paying your bills and not whether or not your money is going to be safe.

 

Check up on you every few years

Another reason that the credit card companies have the expiration date on the cards is so they can check up on you every few years. This one definitely helps the credit card companies more than the customer because they are only going to make changes to your interest rate or fees if you have had some credit problems. They will not be looking to help you out if your credit score has improved. This is basically a way for the credit card company to see if they can find an excuse for getting more money out of your pocket on a monthly basis.

 

Get new card

A final reason for the expiration date is a more practical one. The fact of the matter is that these plastic cards go through a lot of wear and tear over the years. You need to be able to use the card when you go to the store, so you will need to get a new one every now and then. The expiration date gives you a chance to get a new card that will be fresh and not come with any of the scratches or damage found on your old card.

As you can see, there are a number of different reasons for the expiration date to exist on your credit card. You may think that it is a stupid idea, but it has become an industry standard over the past decade. Anyone who gets a credit card these days is going to have to get one that comes with an expiration date, and you should probably just get used to it. It really doesn’t hurt you to get a new card every few years. {Also read Choosing a Credit Card – Carefully Read the Disclosures}

Elizabeth Roberts

Elizabeth Roberts

Liz Roberts and her team are continuously providing information to people who are ready to repair their credit and improve their credit score. Also NewHorizon.org team strives to empower the homebased and small business owners by bringing information that can help them to manage and grow their businesses. Let our 24+ years of business finance experience help you to get the financing you need! CONTACT US if need financing for your business.

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NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

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NHBS Inc © 2022

NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

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