Credit Card- Nowadays, a large part of life, from shopping to bill payments and online subscriptions, is dependent on credit cards . Be it easy EMI or sudden big expenses, this card proves to be helpful everywhere. But there is one thing that most of us do not pay attention to, that is the expiry date of the credit card. Many times, due to ignoring the expiry date, payments fail, service is stopped and penalty is imposed. Let us know why this date is written on the credit card and what effect it can have on your money.
Why does a credit card expire?
Credit card expiry means the date after which your card will become useless for any kind of payment. Remember, the card is not blocked, it just cannot be used. Your account remains active, but a new card is required for transactions. This date is written on the front side in MM/YY format so that you can remember it easily.
Now just think, whether it is your Netflix or Amazon Prime, electricity or phone bill, health and car insurance premium, if all these are set on automatic payment and the card expires, then the payment will fail. Apart from this, the service may be stopped and a penalty may also be imposed. This is the reason why banks usually send a new card to your address 30-45 days before the expiry, so that you do not face any problem.
Keep these things in mind while using the card
Always keep CVV and PIN secret.
Do not share details on any suspicious link or call.
Check your bank statement from time to time.
Never throw away an expired card, tear it up and destroy it.
Does it affect your credit score?
In a direct way, the expiry of the card does not affect your CIBIL score. But the mistake happens when you forget to update the payment with the new card. If the billing date is missed, a late payment charge will be levied and your credit history may be spoiled. This will create problems in getting a loan or a new card in the future.