Bill payment, credit score, insecurity: learn everything about credit cards!
The world of credit cards is filled with information, but not all of it is true
In this article, we’ll debunk the main myths and truths about this popular payment method. Keep reading!
Does having multiple credit cards hurt your credit score?
Having multiple credit cards doesn’t necessarily harm your credit score. What can impact it is how you use them. If you maintain a good payment history and don’t exceed your credit limit, it can even benefit your score.
Is paying the minimum on the bill a good strategy?
This is a myth. Paying only the minimum on the bill can lead to accumulating interest and significantly increase the debt amount. It’s always advisable to pay the full bill amount to avoid interest and maintain good financial health.
Are credit cards insecure?
This isn’t true. Modern credit cards have multiple layers of security, such as the chip and the CVV code. Moreover, many banks offer alert systems for suspicious transactions, making card usage quite safe.
Do I need to check my bill regularly?
Yes! It’s crucial to check your bill regularly.
By doing so, you can identify potential errors or unauthorized transactions. Additionally, it allows you to have better control over your expenses.
Are credit cards only for those without money?
In fact, credit cards are financial tools available for various income brackets. There are options in the market for those with lower income or even for those with negative credit.
Does canceling a credit card increase the score?
On the contrary, canceling a credit card doesn’t guarantee an increase in the score. What matters is the payment history and the use of the credit limit.
Canceling a debt-free card might even decrease the score, as it reduces available credit.
Premium cards are just for status!
While premium cards do offer a status symbol, they also provide a range of exclusive benefits, such as travel insurance, access to VIP lounges at airports, and more attractive cashback.
These cards offer benefits that often outweigh the annual fee, like points, miles, and discounts with partners.
