Will My Credit Card Automatically Renew?

Credit cards don’t last forever, unlike the plastic they’re made of, which takes a while to break down. That’s why it’s important to keep track of your credit card expiry date.

Knowing when your credit card expiry date will save you from the risk of having it declined if you rush to shop.

Although dates printed on cards do not indicate a specific day, the rules are the same irrespective of which credit card is issued by your financial institution.

Expiration Date on a Credit Card

The expiration date on your credit card is a deadline for its functionality. 

Once that date rolls around, the card stops working, and you’ll need a new one from your bank. But don’t worry, your credit account remains active; it’s just the physical card that needs updating. 

Usually, the card issuer sends you a replacement card well before the expiration date. 

However, if you don’t receive one, or if you misplace your card, you might need to reach out to them to get a new one sent your way.

The expiry date on cards usually includes the month and year only. In such cases, the cards will remain valid until the last calendar day of that month.

For instance, if an expiry date reads “09/28,” this means that it can be used until midnight on September  30, 2028. If after this time you seek to use the card, it will be refused.

Do not forget to update any automatic charges that you have on the card by adding the new expiry date, otherwise, your card may still be charged even after its expiry date, with costs that you may not even know about.

Reasons for Credit Card Expiry Date

Credit cards come with an expiration date for a few good reasons:

1. Wear and Tear

Just like any physical item, credit cards can wear down over time. 

The magnetic strip on the back and the important details like the expiration date and security code can fade or get damaged with regular use.

2. Technology Updates

Credit card technology is always evolving to be safer and more secure. For instance, the introduction of EMV chips was a big step forward. 

So, issuers often use expiration dates to prompt updates to newer, more advanced card versions.

3. Design Update

As your credit card’s expiration date nears, it’s an opportunity to discover the new designs and updates your card issuer has prepared.

Card issuers frequently seize the chance presented by expiration dates to breathe new life into their cards.

4. Fraud Prevention

Expiration dates play an important role in protecting you from fraud. When you make a purchase online or at a store, the merchant often asks for your card details, including the expiration date. 

If your card is expired or the details don’t match up, it raises a red flag and can prevent unauthorized transactions.

What Happens After a Credit Card Expire?

After your credit card expires, it becomes unusable for making purchases. 

It doesn’t matter whether you’re at a store or shopping online, if you try to use it, you’ll likely get a “declined” message from the bank.

There’s no need to worry because most credit card companies automatically send you a new card before the old one expires. 

This new card will have a fresh expiration date and a new card verification value (CVV) security code. Usually, your card number remains the same unless you request changes.

Sometimes, the credit card company might also ask if you want to renew your card. 

They might review your account before sending the new card. If your account isn’t in good standing or you haven’t been using it, they might decide not to renew it.

How Do I Dispose an Expired Credit Card

When it’s time to get rid of an expired credit card, there are a few safe options. 

Many people choose to shred their old cards to protect their personal information. 

Cutting them into small pieces before tossing them in the trash works too. Another eco-friendly option is to recycle plastic cards, like PVC, with a recycling company.

Metal cards can be a bit trickier. Some banks offer special envelopes for sending them back for secure recycling when you receive your new card. 

You can also request one by contacting the bank directly. 

While cutting up metal cards with tin snips is an option, it’s not recommended to try shredding them at home. 

And remember, it’s best to avoid third-party disposal services, just send your old card back to the issuer directly.

Updating Recurring Payments After Your Card Expires

Activate your new credit card as soon as possible to ensure you have enough time to update your recurring payments. 

This is especially important for bills like utilities or phone charges that are set to autopay each month.

Make a list of all your recurring charges to help you keep track of which accounts need updating. 

Some merchants might not show up every month on your statements, so it’s a good idea to check several months’ worth.

If you use virtual card numbers for subscriptions and recurring payments, you won’t have to worry about updating your payment information when your actual card number changes.

Facing a credit card expiration date might feel daunting, but there’s usually no need to stress. Credit card companies want to keep your business, so they’ll reach out before your card expires.

This is a chance for them to remind you of their services and keep you as a happy customer.

Before accepting any offers, make sure to research and choose a card that fits your finances and spending habits.