Credit cards are one of the significant financial tools that you can use to pay for your expenses without borrowing from your friends and relatives. You can pay a credit card bill after 40-50 days and even over a tenor in case of large transactions. In and all, credit card is a great option for people who know how to handle their finances. Those who can’t trust their own financial management skills will always be under the impression that credit card is not a good tool. This negative impression can be also be a result of the myths related to credit cards that prevail.
People who lack knowledge about credit cards and how they work are very likely to believe the myths and refrain from benefiting from the existence of credit cards. Thus, here we are taking some time out to debunk the myths related to credit card that prevail in the market.
You need to carry a balance on credit card to build credit: This is, if you believe it, the stupidest myths about credit cards. The agencies offering credit cards would say this as the first thing, “pay your credit card dues on time to avoid interest charges.”
Having multiple credit cards is bad: Some people believe having multiple credit cards is a bad thing. It can be said that the statement is true if the person has no control over his/ her expenses. CIBIL suggests people should own at least 2-3 credit cards to ensure multiple active credit accounts which would ensure a good credit score.
Also Read: Top 5 Credit Card Myths Busted
