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5 Myths About Credit Cards

5 Myths about Credit Cards & Money Management

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Advance Personal Finance

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Think you know all about credit cards and money management? Think again. Here are 5 credit card myths that’ll change the way you view these plastic conveniences.

  1. Applying For A Credit Card Hurts My Score

It’s an over-exaggeration of sorts. Opening a credit card only deducts about 5 points off and nothing more. You get a higher chance to get the best ones if you’re within the 700 score range.

  1. You’ve Got To Get Them All

Some people view credit cards as collectibles, the more you have the better your credit. WRONG, most people can have one or two and still have a good credit score.

  1. No Cards, No Problems

Credit card enthusiasts know how to maintain a lot of credit cards yet have good FICO scores. It’s all about good money management, and knowing when not to charge on a card. Having a credit card is beneficial to help your credit even its only one card. Bad credit is better then no credit.

  1. Pay More Than The Balance To Add To Your Credit Score

One of the biggest credit card myths is paying more than you owe to get a higher score rating. The negative balance is shown as temporary and is viewed as equal to having a zero balance on your credit history.

  1. It Doesn’t Hurt To Go Over The Limit

Paying it back down before the due date isn’t always a good idea. You could get your interest rates raised, or even incur over limit fees. The only time you should pay before the due date is if they have a late fee the day after. Some companies don’t give a late fee until a month after. Best bet is to wait after the due date and pay before the late fee.

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