New to Credit Cards – Stay Away from These Myths

Credit Cards are so in trend nowadays that everyone wishes to get their hands on one of them. But getting a credit is not necessarily very easy until and unless your financial history is flawless. Apparently, this will not be the case for the first timers or the beginners. We call beginners who have just started their financial journey can include the newly graduate student or homemakers who are not necessarily aware of the financial jurisdictions.

As a new customer, you might have a lot of questions, fears, emotions and anxiety about your finances. Well managing finances can be a tough task but there are many options present in the market to choose from. This was initially a good thing, when you actually realise you really have a lot of options to choose from. And while checking all these options, you tend to come across different mindset, some will be anti-credit, some will be in credit minded. But not necessarily anyone of them will be true. What else is not true are the myths you will learn after going through all these options.

Myths, you ask?

What possible myths can be there regarding credit cards, right?

Well, there are many a few of them will be the ones we will talk about in this article. Here are a few Myths related to the credit cards –

Myth – Apply for a lot of credit cards at a same time, this will increase your chances of approval.

Fact – No, you should not apply for numerous credit cards at the same time as it will only cause negative impacts on your Credit Score. You say, as a newcomer, how can I have a credit score right? Well, this is true that you will not have a credit score, not necessarily in the way you see it. But credit bureaus give you a score on the basis of your financial history. Your Credit Score is the one which will help you get the best deals and offers and even the best credit cards in the market. Not only for credit cards but your credit score will also help up in availing the financial aids in future. So, never through your credit score under the bus.

Myth – If I hold more than one credit card, it will be bad for my Credit Score.

Fact – Even if your hold more than one credit card, as long as you have a good “credit utilization ratio” you Credit score will not take the hit. It is important to know that if you have two or three credit cards it is only going to get you benefits for your everyday life. But this does not necessarily a good thing as there are other factors which are attached to these credit cards and that is your repayment behaviour. If you are repaying the borrowed money back in a consistent and responsible manner, everything is good for you. It is better to be responsible as there is not harm in it.

Myth – Even if you pay your credit card dues late, it is okay, as long as you repay it in full

Fact – Once you know your due date, try to make the bill payment before that and that to in full, if you can. If you ignore your due dates, you will be charged not only the additional interest rates every time but also late payment. This also means that the billed amount you might have received before the due date is now added up with some extra charges and the amount has now increased. Not only that, but this type of practice can make your credit report really nasty and you credit score might drop drastically.

Myth – A Credit Card charges and annual fees are very expensive

Fact – Most people who have studied their credit cards before applying for them are aware what the affiliated charges and fees they will have to pay. Some people might also find it really expensive just by looking at them, that is sure a great amount of money and in some cases it is true. If you are unable to make the repayments on time, any type of financial tool is not for you. You need to be responsible while holding your credit. It is important you weigh the benefits and other fees on your credit card to make sure that you are not the one loosing here. And to add-on, not every card is expensive, some credit cards come with just a minimal fee and there are some other credit cards which are lifetime free such as SBI Unnati Credit Card, and if this is not satisfactory what is.

Before jumping into any conclusion, it is important to have thoroughly looked into the credit card you find the most pleasing and matching to your lifestyle.

Conclusion

Credit Cards are of greater benefits when you are just a new individual trying to setup your financial status in the society. It is also very important to have gone through all the information and options possible in order to make the right choice.

Whatever type of new thing you want to try, there are always advices, option and most importantly facts and myths. These are many disbeliefs which needs to be corrected with the right information. There are many myths related to credit cards and the financial management. Maybe with the better information and facts, you will be able to find the credit card which is the right fit for you.