Why do credit card companies send a new credit card well before the card expires?

I know that my credit card company sends me a new credit card a few months before my current one is set to expire. My company does that because so that I will already have the new one activated in the event I need to make a purchase. This is a benefit to me because I don’t have to worry about possibly trying to make a purchase with an expired credit card.

I have never heard of a credit card company sending a card a year or more in advance. The only reason that I can think of why the may have done that is for identity theft purposes as I was watching something on the news today where a bank was issuing its customers new debit cards due to some account holders having their account information compromised. I would contact your credit card company and inquire as to why they are doing so and ask if it would be possible to send the new card a little close to the expiration date.

One important part of your credit card you sometimes overlooked is the expiry date of your card. You only noticed that your card is expired, when the credit card company sends you a new card to use. There are rationale behind this industry wide practice, foremost of which is the fact that the magnetic strip found at the back of your card, containing all the information about you, is prone to wear and tear, in which case it is advisable that it should be replaced after use for a required number of years, and to ensure that it will continue to be read by any automated teller machine.

Another reason behind this practice is the fact that credit card companies desires to cultivate a positive image about their credit card, by sending you a new card in a much improved design, probably it would be impressed upon them that they can be truly relied upon. Accordingly, "security is also an important issue in a world of increasing identity theft incidents. This way companies can carefully check your identity, and consequently reduce the possibility of cards being opened in your name without your approval.

Credit card companies send a new credit card well before the card expires because (without quotes):.

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