Why Do Credit Cards Expire?

By Bruce Boswell •  Updated: 12/14/21 •  6 min read
Filed under: Uncategorized

Having a credit card be something that you know will help you financially. It will help unlock a world for you of payments that might not have been able to access before.

It means you can make purchases and not feel as if you are suddenly taking a lump out of the money you already have available. 

Why do credit cards expire

That’s why understanding how your credit card works is vitally important. If you don’t understand the mechanics that ensure that your credit card is fully functioning and ready to be used as you need it as a means of spending, then you could end up in a great deal of trouble.

Having a credit card is a major responsibility and shouldn’t be treated lightly. 

That’s why if you have any questions as to how exactly a credit card works then you should make sure to continue reading this article because it will set out what you need to know about credit cards.

Questions like why do credit cards expire and why should you have to renew your credit card are important ones to know the answer to and this piece will give you the answers just as you need them. 

Why Do Credit Card Expire? 

First of all, let’s explain why exactly credit cards have an expiry date and what it means for the life of your card.

You may have noticed, examining your card, that there are lots of numbers on the front of it. There is the credit card number itself; on the back you have the CVC and on the front below the longer credit card number there are shorter numbers.

These shorter cluster of numbers represent the date your credit card was issued and the date that it will expire. 

You might wonder – why on earth does a credit card have such an expiry date? Well, there are several good reasons for it. 

One of the main reasons when the card is in use is so that it can prevent fraud. You might find this odd – how can an expiry date prevent fraud? Well, the simple answer is that it can do so because the bank has a copy of the expiry date of your credit card and therefore can use it for verifying whether the card is yours or not. 

For example, a thief or attempt thief might get to see your credit card number and attempt to create a duplicate card but if they don’t get the expiry date right then the phony card won’t take any money from your account. The extra data point as it is sometimes referred to therefore helps you save a lot of money you might otherwise lose. 

Another reason that your card needs to have an expiry date is so that each new card you get is much more sophisticated and easier to be used against you. If you only had one credit card that never had an expiry date and was therefore never updated then your card, being an older one, would be more liable to fraud or more open to breaking. 

Having an expiry date means that you can easily get a new card that is up to date and therefore will not be nearly as vulnerable as other cards. 

Alongside this, an expiry date for your card allows you the ability to ensure that you can decide whether you really want to keep your card with the credit company that you want or whether you want to use another company.

It can also make you evaluate whether there is a better deal you could potentially negotiate with your credit provider. This therefore gives you much greater consumer protection than if you were simply lumbered with one credit card that never expired and there was no way for you to get out of it and go to another company. Your expiry date gives you that option. 

Finally, and perhaps most importantly, your expiry date means you can get a new card on a fairly regular basis. Credit cards aren’t indestructible and after a few years your card is likely to look somewhat worn and battered.

This usually means that it is time to get a new card and with the inbuilt expiry date you can easily get a replacement for your old and battered card in no time. 

Why You Should Renew Your Credit Card (And Check Out The Competition)

Many people believe that credit cards can form bad habits. That they can led to people becoming reliant upon them and that they cause more trouble than they are worth. However, whilst this might be the case for some people, for many other it is vitally important that they continue to have their credit cards. 

This is because credit cards can be a lifeline for many people and simply attempting to stop use them rashly can end up harming them. That is why you should renew your credit card when you can.

However, it must be said that you shouldn’t renew it unthinkingly. Rather, it is better to renew your credit card after looking around and examining the situation of other credit providers.

If you can ensure that you can get a better deal from one of them than from another source, then it will be much better for you financially and for your family. 

This is why it is critically important that you understand not only how credit cards work but how you can ensure that the system works for you. Making the system work for you is important because the credit system should be able to work for those that are using it rather than undermining or holding them back. 

Credit cards aren’t there to be a hindrance but to be a real help to you and your family which is why knowing when your credit card expires is vitally important.

If you think your credit card provider is not doing a good enough job, then you can use the expiry date to your advantage and find a company that is better for you and will give you the kind of credit card you need and deserve.

Expiry dates are there to help you – so make sure you know how to use them to your advantage. 

Bruce BoswellBruce Boswell

Bruce Boswell

Bruce Boswell enjoys researching and writing about all things related to investing and saving money. Whenever he has a chance, Bruce loves travelling all around the world with his wife and trying new foods.