Will Magnets Really Damage Your Credit Cards?

You have probably heard stories about people who got their credit cards ruined because they placed it in close proximity to a magnet. Sure enough, your credit card does contain a magnetic strip, and the common advice is always to avoid placing magnets together lest they affect each other and ultimately ruin their magnetic capabilities. That is called demagnetization.Do you need to memorize your debit, credit card number, CVV from next year?

But the fact is, most people never have experienced such a situation themselves. Magnetic strips are used everywhere, from credit cards to train passes to card keys buy VCC with crypto. But the failing of these cards from demagnetization is rarely observed, if any at all.

In fact, the magnetic strips built in these cards are usually made from ‘hard’ magnets like ferrous oxides and are protected by a tough plastic film against physical abrasion. Card makers know that credit cards go through a great amount of wear and tear, and it is in their best interests to make them as durable as possible. Damaged credit card exchanges cost them millions of dollars every year.

Most of the time, credit cards fail to register on the swipe machine because of dirt on its surface (or get rejected because the user exceeded his credit limit) rather than due to magnetic failure. That is the reason why most cards work again after you wipe them with your shirt or hand.

However, demagnetization does still occur in some situations. The magnetic strip is a very durable magnet in itself, but there are other even stronger magnets around that may demagnetize them. And these magnets are actually found almost every day in our daily on-goings.

Magnets used in, (not on, those small decorative magnets are harmless) refrigerator doors for keeping your fridge closed and tight are actually very big and strong magnets. You may not realise it, but it does take a strong and very durable magnet to handle that frequent opening and closing and yet still hold the heavy door. Without the magnet, your food would probably have all gone bad. Naturally, the one thing you shouldn’t do is to swipe your credit card against your fridge door magnet. You wouldn’t of course, but sometimes it does occur that you would bring your credit card very close to the fridge door without realising. There have been cases where people threw their cards into their shopping bags after a round of grocery purchase and left them together in the fridge.

This is one instance you have to be careful if you’re ever in the hospital. The MRI used for scanning the inside of your body using magnetic fields, and as you might have guessed, if it’s strong enough to penetrate your body, wallets and protective card holders aren’t going to be much help. I wouldn’t expect you to be carrying one to go for a MRI scan, but you might end up in the room for other reasons (you work there or you’re accompanying someone). If you forget, you could end up having not only your credit card, but possibly all other cards wiped out too.

A Credit card is a thin plastic card which contains the name of the account holder, name of the bank or financial institution which has issued the card, 16 digit account number, magnetic strip which stores all information about your name, PIN, expiry date, credit limit and also the logo displaying the type of card such as Visa, MasterCard, Discover, American Express, etc.

Technically speaking its a card that allows its holder to buy goods or services on a credit. So its nothing but an unsecured loan. This means that unlike a secured loan, which is advanced by a bank or a financial institution, a Credit card is offered against without any security. So, the bank or financial institution take necessary steps to ensure that only those meeting certain parameters are qualified to get a Credit card.

A Credit card establishes a revolving credit agreement between you and the issuing bank. You are given an account with a certain credit limit and once you pay back the amount which you have spent by charging your card, the money is once again available to use up to the credit limit. But you must pay at least a minimum amount by the due date, generally once every month. You will pay a finance charge or interest on any amount you do not pay by the due date.

There are a wide variety of Credit cards with many different features and advantages. For instance, Gold and Platinum cards are for customers with a high income. They have higher credit limit and also perks.

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