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I think credit cards have an expiration date because it gives them a contractual âoutâ by saying a contract was only for a stated period and not an open-ended contract. The magnetic strip is a bunch of hogwash. The credit card companies do not want to send out millions of cards just because they might wear out.
2) To avoid paying an annual fee: The main reason why I cancel my credit cards is because the annual fee for the 2nd year is due. Remember that the sign on bonus on many miles and point credit cards is waived for the first year, but unless the card is a great everyday credit card, I will cancel it.