6 Common Myths About Credit Cards Debunked
Credit cards are everywhere. They are also easier to get than ever before. With so many different credit cards out there, it’s a good idea to stay informed. To help you do this, check out these six credit card myths below!
Credit Cards Are Free
Never be mislead into believing a credit card is giving you something for nothing. Credit card companies are able to survive and flourish by essentially loaning you money at an incredible interest rate.
Having Too Many Credit Cards Will Ruin Your Credit
This myth is partly true. However, your credit score is determined by a number of factors. Yes, having too many credit cards can lower your credit score, but there are times when having multiple lines of credit can work to your advantage. For example, you are better off having two credit cards utilizing only half of their available credit instead of having one card nearly maxed out.
You Must Remain Loyal To Your Card
You do not owe your credit card company any loyalty. If the interest rate on a credit card you have is too high for you, you are fully within your rights to transfer your balance to another credit card company for a better rate. Many people have been stuck with credit cards they obtained when young, and these cards are often saddled with high interest rates. As you get older and your income increases, don’t be afraid to shop around for better cards.
Credit Cards Are Predatory
Yes, there are some credit card companies out there that seek to prey on the financially vulnerable. However, if you know how to use them correctly, credit cards can be fantastic tools. Credit cards can help build your credit score. Credit cards can also give you great perks and rewards. Credit cards are also one of the greatest financial conveniences of modern life.
Credit Cards Are Easy Targets for Fraud
It seems easy to steal a credit card. However, this crime is relatively easy to stop and prevent. If your card is ever missing, you can deactivate it with a simple phone call. Credit cards also leave an electronic trail right back to the thief.
You Should Never Have a Credit Card
Owning a credit card is an important part of being an adult. Don’t let them scare you. Sure, they have pitfalls. However, the same is true for owning a driver’s license. If you refuse to own a credit card, you are putting yourself at a financial disadvantage. Get a simple card that’s right for you. If you learn how to use it correctly, you will be fine.
Can you think of any other credit card myths that need debunking? Let us know below!