Credit Cards are fast becoming the primary mode of payment in urban India. After all, it is the only payment alternative that helps one save money while spending it, thanks to various features such as reward points, frequent flyer miles and cashback offers. Moreover, when used judiciously Credit Cards can prove to be a brilliant tool for building an excellent credit history while enjoying the much needed financial freedom. However, like everything else, even Credit Cards come with an expiration date, which can be an irksome aspect, as it entails some elements that need your diligence. We have discussed each of these key aspects in detail.
While Credit Cards don’t go bad, they do suffer wear and tear owing to frequent use. Given that they are made of plastic, some cards even bend or break after prolonged use. Moreover, even the magnetic strip on the card can suffer abrasion. Expiration of the card primarily acts as a good reason for the company to send you a new card. Also, you will get to know that the Credit Card company often uses this opportunity to upgrade or diminish the benefits you derive from the card, as per your credit history.
If you have a Credit Card that attracts an annual fee, your bank or Credit Card company will ask you whether you wish to renew your membership. If so, you will either be asked to pay the charges for the same, or your fee may be waived if you have been using the card frequently enough. Even if you do not hold a card with a paid membership, you will receive a notification from the issuing authority regarding its renewal date. While we recommend that you keep your Credit Card open for as long as possible owing to its benefits, if you wish to close the card, this is the time to let the company know.
If you wish to renew your card, you can take this opportunity to confirm whether or not is the company offering you the same conditions and benefits of use as before. Hence, make sure that the APR (Annual Percentage Rate), the due date for payments, and the penalties are the same as before, else you might unknowingly become a victim of the circumstances. If you have been religiously using your card and paying your bills in time, you may even ask the company for increased benefits and rewards, or a waiver of the annual charge. You will be surprised to know that more often than not companies agree to such request, albeit, only if the customer shows creditworthiness.
You can expect the arrival of your new card at four to eight weeks before the expiration date of the old one. Once you get the card, you will be required to activate your card. To do so, the company will offer you with a password or with a number that you will need to call. Once you activate the new card, you can get rid of the previous one by cutting it into pieces, to prevent it from getting into the hands of thieves.
The expiration of your card will encourage your company to market some new products to you, and you can get access to some of the best Credit Card deals. For instance, if you have a card with unique benefits for online shopping, it may now offer you a travel card that rewards you with flyer miles. Besides, you may also be provided with a card with some distinct benefits or an increased credit limit, though these may come for a higher annual fee. Depending on your spending needs and the benefits offered, you may choose a new card altogether. At this point, it is crucial that you don’t get swayed away by the attractive offers, but that you pick a card that can help you increase your savings without inflicting any harm on your financial health.
The expiration date of your Credit Card may seem to be an unnecessary hassle, but instead of being let down by this change, you should see it as an opportunity to upgrade your card or negotiate for increased benefits. Of course, before you sign off for a new card, you need to analyse the terms in detail and check whether you are getting the best deal. Now when you and your partner contemplate the question ‘How Can We Get a Credit Card’, make sure to look for companies that enjoy an excellent reputation. After all, your financial health is one of the most critical aspects of your life as an adult. You can also visit MyMoneyMantra to compare and choose from a multitude Credit Card offers.
Also Read: Pros & Cons of a High Credit Card Limit
To apply online for Credit Cards, Secured Loans and Unsecured Loans, visit www.mymoneymantra.com, the leading online lending marketplace that offers financial products from 60+ Banks and NBFCs. We have served 2 million+ happy customers since 1989.