Perhaps the most common payment option, according to the likes of Robert Jain, is by credit card. While it's safe to assume that you have a card of your own that you use from time to time, there is information floating around that simply isn't true. These myths continue to be passed around, which is why it's important to know what's true and false. When it comes to the most common myths about credit cards, here are the ones to know.
"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.
For those that have been on the fence about applying for their first credit card, understand that much of what you've heard doesn't hold water. In fact, it pays to have this in your possession, even if you don't plan on using it often. After all, if you're in a situation where cash is scarce and your debit card won't cut it, credit will be the next best option. The more that you know about credit card myths, the easier it will be to apply for one.
"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.
For those that have been on the fence about applying for their first credit card, understand that much of what you've heard doesn't hold water. In fact, it pays to have this in your possession, even if you don't plan on using it often. After all, if you're in a situation where cash is scarce and your debit card won't cut it, credit will be the next best option. The more that you know about credit card myths, the easier it will be to apply for one.
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