You’re probably wrong about these credit card “facts”!
Let’s clear up some commonly believed myths about credit cards!
Myth number one. Credit cards are bad for your finances. This couldn’t be more wong. Credit cards are a great tool if you use them wisely! Using a credit card responsibly helps to boost your credit rating because you now have a history of on time payments and managing debt, which can show future lenders you’re low risk if you ever need to take out a loan. Also, some credit cards offer great rewards such as flight miles, cashback or discounts at various stores.
Myth number two. You should only use credit cards for emergencies. Having a credit card is great for emergencies, but you can use them for more than just that! If your credit card offers rewards, you should be using the card so you can get access to them! The trick is to never use more than you can pay off each month. If you normally spend 10 thousand dollars a month using your debit card, you can limit yourself to only using that amount on the credit card instead.
Myth number three. Credit cards are only for people who can’t manage their money. If you’re living only on credit and never paying it off, that’s a red flag. But if you’re using your credit card responsibly, there’s nothing wrong with having a credit card, and as we mentioned, it’s actually beneficial! Having a credit card doesn’t mean you’re living above your means or that you can’t manage your money. It’s all about how you use it.
Learn more about credit cards here!