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.
"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.
"There's nothing wrong with signing up for numerous credit cards." This is largely dependent on one's unique situation. For instance, if you have a credit score in the 700s, you may not have to worry about it taking it a hit if you sign up for a card. However, anything below that can have a negative impact. For this reason, focus on boosting your credit score prior to applying for other cards. This will make it easier to become approved, too.
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.
"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.
"There's nothing wrong with signing up for numerous credit cards." This is largely dependent on one's unique situation. For instance, if you have a credit score in the 700s, you may not have to worry about it taking it a hit if you sign up for a card. However, anything below that can have a negative impact. For this reason, focus on boosting your credit score prior to applying for other cards. This will make it easier to become approved, too.
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.