These days, the world runs on credit cards. In fact, the use of credit cards have become so common, that they are not used as a tool to determine exactly what you can and cannot own in the future. We are referring to credit history which develops over time with use of credit cards. This is pretty common knowledge in developed countries however, there are loads of interesting and unknown facts about credit cards that you may not be familiar with.
Since digital currency has become a way of life really, we decided to list down some unknown facts about credit cards that should be fascinating to you. Read on and find out more.
Expired Credit Cards
The first on our list of unknown facts about credit cards is a mystery regarding expiry dates. The reason there is an expiry date on credit cards is because of the magnetic strip used for communication. It is the strip that suffers a lot of damage and hence subject to an expiry rather than the card itself. The strip lasts around 3 to 4 years, typically. So technically, the credit card is still usable even after expiry. Technically!
Credit cards follow Luhn algorithm, which means by a few simple calculations you can tell if a card is valid or not. Start on the right and double each second digit, starting from the first. So 7612 would become 9632. Add the new number together. The result should now be divisible by 10. If not, you have an invalid card.
VISA is a recursive acronym. A recursive acronym basically refers to itself. In this case, VISA refers to the organization Visa. The acronym stands for Visa International Service Association. Bet you didn’t know what a recursive acronym was. You did? Well, come up with another example without googling it.
Ever wondered why after spending thousands on credit, your minimum amount due is so little, it’s funny? Well, the minimum payments that low because they are designed to get people into debt. You keep paying the minimum every month, and a year later you’ll have heap loads of money to pay. Why so mean? Well, that’s because the credit card companies only make money if you are indebted to them. They make their money on interests and low fees.
The last on our list of unknown facts about credit cards is the question about your personal information. If you are looking to make online transactions etc. chances are you would have to give out your home address. Know that it is illegal for the vendor to require personal information from you, so even if you deny giving it out, they cannot deny the transaction. Fun Fact: If you pay all your amount due on time every time, you’re referred to as a deadbeat. It’s because you’re not making the companies any profit.
If you would like to add more to his list of unknown facts about credit cards, feel free to do so in the comments below.You can follow us on Facebook, Twitter, or Google+ for more updates. Otherwise fill in the subscription box above, or subscribe to our RSS Feed.