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.
"It's good to have a remaining balance on your credit card." For those that believe this to be true, think again. Bob Jain, as well as other names in the world of finance, will tell you that this can actually increase your interest rates. In short, you'll end up owing more over time. This is why it's in your best interest to pay off your debts, in full, as early as possible. This will allow you to save more money than you would have otherwise.
"Having one of each big credit card is useful." One of the reasons why this myth is continually passed around is the idea that one may be stuck in a location where one card can't be used. The truth of the matter is that if you have one of the big names, such as Visa or Mastercard, chances are that you won't have to worry about being out of luck. There are certain locations that are particular about eligible credit cards, though, so it pays to do some research.
"The more credit cards one opens, the better." At worst, you'll end up seeing a drop in your credit score. At best, your score will remain where it is. The idea that more credit cards are better is fictitious, to say the least, so it's important to improve your credit score first and foremost. If your score isn't within the 700s, for example, you may want to hold off on applying for a card at your nearby retailer. The opportunity will be waiting for you when you return.
With these credit card myths in mind, hopefully you'll be more open to taking part in the application process. There's no denying the fact that credit is a common payment, though not everyone uses it at the same pace. In fact, many people keep their cards for emergency situations or purchases that are simply too expensive to make at the moment. It never hurts to have options, so research credit cards so that you can find the best one to apply for.
"It's good to have a remaining balance on your credit card." For those that believe this to be true, think again. Bob Jain, as well as other names in the world of finance, will tell you that this can actually increase your interest rates. In short, you'll end up owing more over time. This is why it's in your best interest to pay off your debts, in full, as early as possible. This will allow you to save more money than you would have otherwise.
"Having one of each big credit card is useful." One of the reasons why this myth is continually passed around is the idea that one may be stuck in a location where one card can't be used. The truth of the matter is that if you have one of the big names, such as Visa or Mastercard, chances are that you won't have to worry about being out of luck. There are certain locations that are particular about eligible credit cards, though, so it pays to do some research.
"The more credit cards one opens, the better." At worst, you'll end up seeing a drop in your credit score. At best, your score will remain where it is. The idea that more credit cards are better is fictitious, to say the least, so it's important to improve your credit score first and foremost. If your score isn't within the 700s, for example, you may want to hold off on applying for a card at your nearby retailer. The opportunity will be waiting for you when you return.
With these credit card myths in mind, hopefully you'll be more open to taking part in the application process. There's no denying the fact that credit is a common payment, though not everyone uses it at the same pace. In fact, many people keep their cards for emergency situations or purchases that are simply too expensive to make at the moment. It never hurts to have options, so research credit cards so that you can find the best one to apply for.
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