There are still credit card myths that many people believe in. The use of these cards is not new to a lot of people, yet there are still misconceptions about its use. In this article, we’ll cover some of these most common myths and debunk them by explaining the truth behind them. One of these myths might be something that has been confusing you for a long time. Learning more about them would help you use your credit card wiser.
Getting a New Credit Card Will Cause My Credit Score to Go Down
It’s true that applying for a new credit card could make your credit score to go down but only for a few points. As long as you just get one new credit card at a time, it shouldn’t be hurting your credit score too hard. If you pay your balance on time, you would be able to recover before you know it.
Using My Credit Card Will Hurt My Credit Score
This is another common misconception about credit cards. The truth is that you could actually increase your credit score with the responsible use of your credit card. One of the best ways to do this is to pay your balance on time. About 35% of your credit score is made up of your credit card history. If you’re a responsible user, you could even use this to your advantage to improve your credit score.
Credit Cards Can Be Easily Stolen
It’s true that credit cards are not susceptible to stealing. Your credit card may not just be stolen by a thief, but your credit card information could also be stolen online and it could be used fraudulently. Then again, this doesn’t happen all the time as you could do something to keep them safe such as using your credit cards only on trusted sites and keeping them secured when going out. However, in case that you lose your credit card or it gets stolen, you should report this to your credit card provider immediately so that any charges made after your report that you didn’t make wouldn’t be charged to you. Even if it was fraudulently used before your report, the most that you would pay is typically $50.
I’ll Be Paying Huge Interest Because of My Credit Card
You would be paying huge interest if you’re not paying your balance in full. As your balance increase, so as the interest that you need to pay. It’s best to pay your balance in full so that you wouldn’t have to worry about the interest.
Checking My Credit Score Would Make It Lower
Almost always a concern when it comes to the use of credit card is the credit score. While lenders checking your credit score could hit it low, it shouldn’t be affected if you’re the one who check your credit score.
These are some of the top credit card myths that many people are still confused about. Do you know of other credit card misconceptions that you wish to share? Let us know in the comments section below.
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