If you're making a large purchase, chances are that you will do so through your credit card. You may know the general details about it, including its credit limit, the benefits it can provide, and what have you. However, you may not know that certain pieces of information floating around are mistruths. In short, they are myths that the likes of Robert Jain can shed light on. The following myths are ones that deserve to be discredited.
"One should always keep a balance on their credit card." This is one of the most common credit card myths that can actually cause financial trouble if left unaccounted for. According to names such as Bob Jain, when there is a remaining balance to pay off, there is interest that comes with it. Ergo, you will end up owing more in the future. Needless to say, it's in your best interest to pay off your credit card in full.
"It's wise to have one of each major credit card." Even though you may fear the idea of being in a store or restaurant that won't take your credit card, this is the exception rather than the rule. If you have a Mastercard, for example, you will most likely be able to use it anywhere you go. What about locations that are more particular about credit cards, though? Before you travel, research these locations so that you can be prepared.
"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.
"One should always keep a balance on their credit card." This is one of the most common credit card myths that can actually cause financial trouble if left unaccounted for. According to names such as Bob Jain, when there is a remaining balance to pay off, there is interest that comes with it. Ergo, you will end up owing more in the future. Needless to say, it's in your best interest to pay off your credit card in full.
"It's wise to have one of each major credit card." Even though you may fear the idea of being in a store or restaurant that won't take your credit card, this is the exception rather than the rule. If you have a Mastercard, for example, you will most likely be able to use it anywhere you go. What about locations that are more particular about credit cards, though? Before you travel, research these locations so that you can be prepared.
"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.
