You might have been told certain things about credit cards that either encouraged you to cancel yours or simply not sign up for one in the first place. While it can be argued that there are downsides to having them, the truth of the matter is that they offer considerable value. Nonetheless, there are many myths that continue to be passed around as factual. Here are just a few of the myths in question that Robert Jain and others can debunk.
"Having a balance on one's credit card is beneficial." When it comes to myths regarding credit cards, this is one of the most harmful. The reason for this is that if you have a remaining balance to pay off, you have interest to cover as well. In short, you'll end up owing more than you should have to pay. For this reason - and names like Bob Jain will agree - pay off what you owe in full. Your credit score will thank you for it.
"One should have each of the major credit cards." It's been said that having one of each major credit card, including Mastercard, Visa and American Express, will help when visiting various locations. What if you're in a restaurant, for example, and they won't take your American Express card? Rest easy knowing that situations like these are extremely rare. In fact, nine times out of ten, you'll be able to make payments with the card you use the most.
"I should be open to the idea of applying for multiple credit cards." Even though this may not be detrimental to your credit score, depending on how high it is, there's no clear-cut proof that it's beneficial for everyone. In fact, applying for multiple credit cards may yield no return at all. For most people, credit score improvement should be the name of the game. This will provide more of a buffer if you ever decide to apply for a card in the future.
As you can see, there are quite a few mistruths about credit cards that seem to never stop floating around. Finance is a complex topic, to say the least, so it's important to differentiate between fact and fiction. One of the best ways to do this is by consulting your bank. They will be able to provide you with the facts that will not only lead to the perfect credit card for you but save you money in the process.
"Having a balance on one's credit card is beneficial." When it comes to myths regarding credit cards, this is one of the most harmful. The reason for this is that if you have a remaining balance to pay off, you have interest to cover as well. In short, you'll end up owing more than you should have to pay. For this reason - and names like Bob Jain will agree - pay off what you owe in full. Your credit score will thank you for it.
"One should have each of the major credit cards." It's been said that having one of each major credit card, including Mastercard, Visa and American Express, will help when visiting various locations. What if you're in a restaurant, for example, and they won't take your American Express card? Rest easy knowing that situations like these are extremely rare. In fact, nine times out of ten, you'll be able to make payments with the card you use the most.
"I should be open to the idea of applying for multiple credit cards." Even though this may not be detrimental to your credit score, depending on how high it is, there's no clear-cut proof that it's beneficial for everyone. In fact, applying for multiple credit cards may yield no return at all. For most people, credit score improvement should be the name of the game. This will provide more of a buffer if you ever decide to apply for a card in the future.
As you can see, there are quite a few mistruths about credit cards that seem to never stop floating around. Finance is a complex topic, to say the least, so it's important to differentiate between fact and fiction. One of the best ways to do this is by consulting your bank. They will be able to provide you with the facts that will not only lead to the perfect credit card for you but save you money in the process.
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