Who carries loads of money in their pockets just to pay bills? This is 2024, and now electronic media and online payment systems are growing pretty fast. That’s not all; If you don’t want to get scammed in any of the fraud cases, it’s always better to keep your credit card ready. Therefore, credit cards are not only going to help buyers, but often many shopping sites are offering certain amounts of discounts over credit cards and debit cards.
But not everyone thinks using a credit card is safe. The reasons are very simple. There are certain types of myths that are associated with credit card use. Thinking of getting a credit card? Have a look at the basic myths that are associated with using credit cards.
Common Myths Associated With Credit Cards
Before applying for any bank’s credit card, it’s always better to study all the pros and cons of using credit cards. Scroll through the end of the read then decide whether you like to get the credit card or not.
1. Applying a New Credit Card Hamper Your Credit Score
Does a hard inquiry about a new credit card hamper your credit score? Often, banks want to check your creditworthiness through your credit score and record-checking. Hard inquiries slightly impact your credit score. It can dip by a few points, like 1 to 2. That’s all. That’s pretty usual.
2. Canceling the Credit Card Improves the Credit Score
Canceling a credit card is never going to improve your credit score. If you have more than one credit card, you can cancel any of the cards. That’s entirely your choice. Often, canceling the credit card actually makes the work complicated for the lenders. The banks want to see the creditworthiness of the lenders, but after canceling the credit card, monitoring chances will be minimized.
3. Hike of the Credit Limits Can Increase Your Expenditure
This is a big myth. For any shopaholic, we are going to say yes. Of course, increasing the credit limits can increase your expenditure. For regular credit card users, this is not a big deal; you just have to make a clear budget and pay the bill on time.
4. Having More Credit Cards Are Not Good
There is nothing good or bad. Users can have multiple credit cards, but they have to keep their credit card bills under a healthy limit. Long-pending credit bills are always bad, no matter how many credit cards you use.
In Conclusion
Having a credit card is a good idea, but every coin has two sides: pros and cons. If you can’t spend wisely, then having more than one is not a good idea. For regular users, credit cards are such a good money and time savior. It will save you time, and you don’t have to think about withdrawing any amounts from your accounts. Do you have any points in mind? Comment back to us and share your credit card-using experiences through the comment sections.
Need a quick consultancy on managing your debt and improving your credit score? Dynamic Innovations Solution offers the best consultation for those who find struggle in improving their credit records.
