Four Myths and Facts About Credit Cards


According to NerdWallet, the average household in the United States has credit card debt of $15,607. That’s a lot of debt, and many people are way above that number.

Some of this credit card debt is because people don’t fully understand how to use their credit card, and then everything just grows and goes crazy from there. It’s very easy to let credit card debt get out of hand and out of your reach.

I believe that understanding credit cards and why debt can happen is very important and helpful in learning how to correctly use credit cards.

Below are four myths about credit cards:

Four Myths and Facts About Credit Cards1. Using credit cards will only lead to debt.

This is a major myth that I’ve heard. Credit cards will not only lead to debt. It is definitely possible to use credit card and never rack up any credit card debt. I’ve never had credit card debt and I use my credit cards religiously.

2. Paying the minimum payment on your credit card is all you need to do.

If you can, you should always pay off your credit card debt in full each month. Many people think you only need to pay the minimum payment each month in order to avoid any interest fees, any that is not true. If you only pay the minimum payment, there is a HIGH chance that you still will have to pay interest fees each month, and this can add up very quickly.

This then leads to the next one…

3. If you want to increase your credit score, keep a balance.

This is a myth I’ve just recently heard about and it’s a little scary. You do not need to keep a balance in order to grow your credit score. In fact, keeping a balance will hurt your credit score.


4. Credit cards are useless. All you can do is spend money.

There are so many benefits of using credit cards. You can have payment protection on certain purchases, you might receive travel insurance on your credit card, rental car insurance as well, cash flow for the month, and more. Some credit cards also have a 0% interest rate.

Of course though, none of these benefits are good if all you do is rack up credit card debt and interest charges. The key here is to know how to use your credit card without having to pay anything.

What credit card myths or facts have you heard?


Image via Flickr by?Shawn Rossi


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