Credit Card Offers and Best Credit Cards Rewards Myths You Thought Will Raise Your Credit Score Fast

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Credit cards, just like any kind of financial products or services, may appear to generate a level of phobia for people. There are rumors and myths running unbridled about how to spend on a card, when to pay it off and whether or not to even have one. Some of these credit card myths may be causing your wallet– and your credit score– more disservice than good.

Listed below are five credit card myths we hope you’ll discount next time you hear them.

1. “Don’t ever get a credit card, just use debit or prepaid cards”

Certainly never booze on one type of beer, or else you’ll just get incredibly sick. Hmm… Really?

When they tell you not to get a credit card, that’s basically what people are saying.

There is a most common mistaken belief that having a credit card eventually lead to damaging credit card debt which rips into your credit score.

Sure, some people don’t understand how to deal with credit cards– or have character types naturally dis-positioned to looking at what will wreck havoc into their provided balance as they are true  pleasure-mongers, that attitude alone result in maxing out any credit limit.

For the responsible individual, a credit card offers one of the easiest ways to build and establish credit history. Prepaid cards and debit cards do virtually nothing to help establish credit history.

Instead of just listening to scare tactics, take into consideration your time perspective. what have you done lately to test your abilities, Accountability levels and background with debt.

If you’re the kind of person who always handed reports in on time, never ever  misses an appointment and understand how to budget– well you can probably handle a credit card.

Possessing a credit card in your purse doesn’t just mysteriously accumulate debt, but it can amazingly help you improve your credit score.

Expert advice from a former Credit Card administrator:

Your credit score measures your ability to behave responsibly when you borrow money. Prepaid cards and debit cards do not require the bank loaning you money, due to this fact they are not included in your credit score

2. “Carry a balance on your credit card; it helps your score.”

NEVER! NEVER! EVER! ” Its a no no no!

Apologies, if that was confusing and too dramatic!

Let’s try again: NOOOOOOOO!

A horrendous myth is hovering around out there that transferring a balance on your credit card by carrying it over into your next billing month, and only paying the minimum due each month will aid your credit score. This is simply not true.

This myth may have begun by someone perpetuating lies by saying, “Do not pay off your credit card until your credit card provider sends you a statement. Paying it off early doesn’t help your score.”

And it morphed into, “Don’t pay off your whole bill, it will help your score.” Listen don’t be a smarty pantz and try to outsmart your credit cards provider. You are probably doing more harm to your bank balance than you realize.

Regardless of where it came from, it’s flat out misguided.

Each and every month you need to pay your credit card bill on time and in full. Pay at least the minimum (preferably a little more than the minimum) on time if you can’t afford to pay off the balance in full. Because missing a payment– even by a day– can cause significant damage to your credit score, never miss paying at least the minimum.

You aren’t damaging your score nor are you improving it if you’re carrying a low balance on your credit card and paying the minimum month-to-month because you heard you should. You are giving up money each month in interest to your lender. Why throw away money?

Keep in mind: Carrying a high balance from month-to-month can hurt your score because you look irresponsible to lenders.

Consider utilizing a balance transfer to cut the interest rate and cost of repaying down the debt if you’re struggling with credit card debt.

Expertise from a former Credit Card executive:

The two most important parts of your credit score are paying on time level of usage. Nowhere in your credit score does it reward you for paying interest on your balance.

3. Only have one credit card

This particular myth is linked with the belief that people can’t have a credit card in their pockets without incurring debt. This is legitimate for some, but not everybody.

If one feel you can’t handle paying off bills on several credit cards because you’ll either a) forget b) rack up too many transactions or c) get overwhelmed, then stick with one.

For those who are organized, accountable and maybe like to take advantage of cash back rewards– then go ahead and get more than one credit card.

We highly recommend finding a card at that complement your particular spending habits. This can be made  easy with a credit card cashback rewards tool.

It also is valuable to have at least one card with a low interest rate, likely to fall somewhere around  9.99%, in your emblematic freezer. In case of an emergency, it’s best to use a card with a low-interest rate in case you won’t be able to pay off the full balance.

If you get into the practice of credit card churning for rewards, then be watchful of all your payments, any annual fees and not overspending to get a sign-on bonus.

Credit cards Expertise from a former Credit Card executive:

Your objective is to keep use of your credit cards offer on the low. One way to make sure that takes place is to have a number of credit cards open. That raises your total limit available, making it easier to keep your utilization low.