Credit cards come with a bad reputation. Often, it is a general misconception and undeserving generalisation. Many people immediately say no to credit cards based on what they hear from their relatives or friends. Highly likely, their relatives or friends were not able to manage their credit cards properly and hence, the blame fell on credit cards. 

On the other hand, there are also people who would speak highly of credit cards as a financial management tool that when used properly and wisely, can be helpful to you in many ways. 

In short, there are many misleading myths about credit cards. Here’s to busting the credit card myths once and for all! 

Exposing the credit card myths

In this article, you will come across some of the most commonly mistaken facts about credit cards. These may have influenced your thoughts against the use of credit cards and deprived you of a chance to use a great financial tool. 

Here are the credit card myths and facts to get you started. 

• It is a trap into a pool of debts.

How many times have you heard someone with bad credit card debt experience suggest you not to use it? Sometimes, their experience may taunt you from making the right decision. 

The general idea you get from such remarks is that credit cards can be tempting for you to use without control. At times, you may go overboard to satisfy your unending consumer desires. 

However, the solution is the responsible and careful budgeting of your needs. With a proper budget you surely can control your needs and pay only for things that are necessary. A disciplined and strategic use of credit cards can bring you more rewards, gifts and earnings than can help to offset your regular expenses.  

• One credit card is more than enough. 

Since the general misconception is that credit cards are a dangerous tool, having more than one is thought to be a sure way to a financial crisis. Oftentimes when you hear this myth, you might try to limit yourself to one credit card. 

The fact is that it is ideal to have more than one type of credit card. Each credit card comes with its own set of rewards and rebates on certain expenses. There are credit cards offering rewards for regular online shopping and there are credit cards that offer you air miles which can be useful if you are a frequent traveler.

So, if you find that you need more than one card, you can certainly get more than one depending on your earning limits and spending habits. Once again, you need to stick to your budget and monthly limit to ensure you don’t bite more than you can chew. 

• Paying something is better than nothing.

Many credit card users assume that if they manage to pay the minimum payment or any amount less than the minimum payment for the month, they are good to go. 

Sadly, paying less than the minimum amount is only as good as missing your due.This will even affect your credit score. While, paying the minimum payment will add on to your interest rates. It incurs an excessive amount that you will eventually have to pay. Unchecked, this can push you into a credit card debt spiral. 

The recommended advice is to make sure you can pay your monthly credit card bills off every month. This way, you will be making use of the rewards and preventing yourself from getting caught in the credit card debt spiral. 

• It is recommended to keep a low credit limit.

The general misconception is that having a low credit limit can stop credit card users from spending more than they could afford. 

It is wise to set a limit before you start using your credit card. Nonetheless, the limit does not dictate the way you spend because only you are aware of your expenses. 

You should have a high credit limit to minimise the debt to credit ratio utilisation of your credit card. In layman’s terms, you will have a worry-free use of a credit card regardless of the amount you spend within the limit. You can use the money for both big purchases and regular use with minimal amounts. It will be an excellent way to also boost your credit score. 

• Credit cards are only for the rich. 

If you have always thought that credit cards mark social and wealth status, then you are wrong. Owning a credit card is not an identity of the rich people. Credit cards are not exclusive or expensive. 

You can own a credit card depending on your income and monthly commitments. There are some credit cards that target low-income professionals. So, you can always check with the bank to know your eligibility. 

You can also learn the right way to use a credit card to avoid yourself from going beyond your budget. The promotional benefits of signing up for a credit card can also give you a low or free annual fee. 

Know your facts and debunk the credit card myths

Credit card is a great financial tool when used correctly. Having the right information will lead you to better financial standing. It is time to change your perception about credit cards and start to use one the right way. Here’s 5 Best Online Shopping Credit Cards In 2021 and 5 Best Promo Credit Cards to get you started.