Credit Card Expiry: The expiry of the credit card is not just a date, but the important information related to the safety of your money. If the card is not updated on time, then many problems can come. Know how the expiry credit card affects the finance?
Credit card expiration impact: Nowadays most people use credit cards for shopping, bill payment or online subscription. Easy EMI or sudden expenditure, this card is useful everywhere. But have you ever noticed the expiry date of your credit card? Often we ignore it and later face problems like failure failure or service closure. In this article, we will explain to you in easy language what is the expiry date of the credit card, why it is given and what can be affected by your money. Along with this, you will know why it is necessary to keep CVV, PIN and card details safe?
Why is there an expiry date on the credit card?
The expiry of the credit card means the date after which your card will be invalid to any digital or physical payment. However, your card account remains active. It is written in MM/YY format on the front of date card.
Why do banks issue new cards again and again?
Security upgrade: Advance technology and better security features are provided in every new card.
To stop fraud: Replying old cards reduces the risk of fraud.
Wear and Tier: Card can be damaged over time, so replacement is necessary.
Customer data update: Bank accounts and addresses get a chance to review.
Market Competition: Banks maintain their customers by giving new features and offers.
What is the effect of credit card expiry?
If your credit card expires and you did not start using a new card, then your automatic payments like Netflix, Amazon Price, such as OTT subscriptions, electricity, water, mobile utility bills, health and car insurance premium, can all fail. This increases the risk of payment disorder and penalty. Therefore, banks usually send a new card 30-45 days before the expiry date, including a new CVV, security code and sometimes a new card number.
Does expiry affect the credit score?
The expiry of the credit card directly has no effect on your CIBIL Score. But if the card expires and you do not update your automatic payments, then the billing date can be missed. This can lead to late payment charge and your credit history may deteriorate. This can directly affect your future loan and credit card approvals.
What to do after expiring credit card?
- Set the reminder of the expiry date.
- Confirm your new address to the bank so that the card is received on time.
- After expirying, throw the old card safely and throw it away.
- Cut chip and magnetic strip.
How to use credit card correctly?
- Always keep your CVV and PIN secret.
- Do not share card details on any suspected link or call.
- Check the statement from the bank from time to time.
- Cut the old card and dispose, do not throw.
Also read- Is Cibil Score bad? Credit card can still be found, know how
Also read- Earn more than ₹ 10,000 every year from Credit Card, no one tells these 5 tricks