There is no denying the benefits associated with carrying at least one credit card. From the ability to make big purchases to the reward points you can collect, this is a financial tool that many people rely on.
As long as you are responsible enough to use a credit card in the appropriate manner, you don’t have much to worry about – or do you?
There are many credit card myths that have harmed people just like you in the past. If you are not careful, you could fall victim in the near future.
Here are three credit card myths you never want to believe:
1. Banks don’t want your business if you always pay in full. If you pay your credit card bill in full every month you never have to worry about an interest charge. Of course, this also means your credit card company doesn’t make as much money off of your account.
Despite the fact that you may always pay your balance in full, card issuers still want your business. Not only could this change in the future, but they still earn money from merchant fees. On top of this, annual fees (among others) can add up as well.
2. One credit card is as good as the next. This may sound silly, but many believe it to be true. If you take the time to compare your options, you will soon find that some offers are much better than others.
Focus on details such as: interest rate, reward program, and fees. The more you learn about each offer the easier it is to determine which one is best for you. Don’t ever think that each card is the same, as nothing could be further from the truth.
3. If you cancel your credit card you are required to payback any sign-up bonus. It is important to read the terms and conditions before applying for a credit card, however, this is very rarely the case.
Once a bonus has been awarded there is no going back. As long as you meet the requirements set forth by the credit card issuer, you have nothing to worry about.
These are three of the most widely spread credit card myths. Can you think of any others that may have impacted you in the past?
