Over the years, whenever you have had a financial requirement to meet, you have turned to banks to avail of credit. Loans are the most popular facility you can consider. It lets you borrow a significant amount on meeting specific eligibility criteria and following a procedure. Though Loans are a good credit facility, you wish to borrow a basic amount urgently. That is when the banking and financial system introduced Credit Cards as a part of their offering.
Credit Cards are plastic cards that let you readily access a pre-approved line of credit. You can use the card to make various purchases and transactions, offline and online. The bank approaches you with a Credit Card offer or you can apply Credit Card online. In either case, consider applying for a Credit Card.
What is a Credit Card expiry date?
Today, every product comes with an expiry date, and Credit Cards are no exception. The Credit Card expiry date is till which your card is valid. The expiry date is mentioned on the front side of your card. It is also mentioned in your card statement and under the ‘cards’ section on Online Banking platforms.
The Credit Card expiry date is mentioned in a two-digit month or year format. Your Credit Card is valid till the last day of the mentioned month or year. For instance, the mentioned expiry date is 04/24. This indicates your Credit Card is valid till the last date of April 2024. Once your Credit Card expires, you cannot initiate any offline or online transactions. A ‘declined payment’ message pops up if you attempt to make a transaction.
Typically, banks reach out to you 30 to 60 days prior to the expiry date, enabling you to apply for a card renewal. This way, you can get a new Credit Card before your existing one expires. Ensuring your purchases and transactions are carried out uninterrupted. Note that despite the mention of the expiration date, a bank can close your Credit Card if you showcase irresponsible credit behaviour. The bank also reaches out for a Credit Card renewal offer for the same reason.
Why do Credit Cards have an expiry date?
A Credit Cards expire within three of five years for the following reasons:
Wear and tear
A Credit Card has a magnetic strip that stores all your card information. The payment machine reads this strip as you swipe your Credit Card to process a purchase or transaction. The card's magnetic strip can become less efficient or rubs off with time. Upon expiry, you get a new Credit Card that has an efficient magnetic strip, allowing you to make seamless transactions.
Security and technology enhancement
When it expires, you get a Credit Card with the latest security and technology features like ‘tap-to-pay,’ which your old card will not have.
