Credit Card Myths You Should Know About
You’ve decided to sign up for a credit card. But is that a good idea? After all, you heard all the horror stories about people being crippled by a mountain of debt. Well, it depends.
There are a lot of misconceptions about credit cards, since they’re one of the main means of paying for commodities, services, luxury goods, etc.
But whether you decide to sign up for one or not, make sure to avoid these myths like the plague:
Myth # 1: You Can Keep Carrying Some Debt on Your Credit Card
A lot of people are under the misconception that it’s:
- Desirable to carry some debt on your card
- Alright to pay just the minimum amount.
But remember, credit card interest rates are very high.
A lot of people believe that by just paying the minimum every month, they won’t accumulate debt. But paying the minimum doesn’t mean you won’t have to pay the full amount. Eventually, you’ll have to clear your debt.
Moreover, you’ll still be racking up interest for every late payment.
Myth # 2: It’s Easy to Pay Off Credit Card Bills
According to NerdWallet, the average American family carries $16,061 in credit debt.
It doesn’t matter what your bank told you when they made you sign up for a credit card. Salespeople tend to say just about anything to convince clients to buy in.
In reality, paying off credit card bills isn’t always easy.
If you miss a payment, the bank will charge you a markup. As mentioned above, credit card interest rates are expensive, and debt can keep on piling up over time.
Myth # 3: You Can Just Pay the Minimum Amount Needed Every Month
Even if you’re paying the minimum amount, you’re still accumulating debt. You still have to pay back the rest at some point. It’s called running the debt treadmill for a reason!
But at the end of the month, you still have to repay the bank. You still have to make the payments. It’s better to pay in full once than to worry about having to pay back with a high interest rate.
Getting a credit card shouldn’t stop you from living your life. In fact, it’s supposed to make your life easier. If the debt has gotten out of hand and you can no longer get loans because of it, consult one of our credit score specialists.
Sign up without a delay so we can get started right away! We serve clients in Michigan and all over the US.