Perhaps the most common payment option, according to the likes of Robert Jain, is by credit card. While it's safe to assume that you have a card of your own that you use from time to time, there is information floating around that simply isn't true. These myths continue to be passed around, which is why it's important to know what's true and false. When it comes to the most common myths about credit cards, here are the ones to know.
"It's good to have a remaining balance on your credit card." For those that believe this to be true, think again. Bob Jain, as well as other names in the world of finance, will tell you that this can actually increase your interest rates. In short, you'll end up owing more over time. This is why it's in your best interest to pay off your debts, in full, as early as possible. This will allow you to save more money than you would have otherwise.
"One should have each of the major credit cards." It's been said that having one of each major credit card, including Mastercard, Visa and American Express, will help when visiting various locations. What if you're in a restaurant, for example, and they won't take your American Express card? Rest easy knowing that situations like these are extremely rare. In fact, nine times out of ten, you'll be able to make payments with the card you use the most.
"There's nothing wrong with signing up for numerous credit cards." This is largely dependent on one's unique situation. For instance, if you have a credit score in the 700s, you may not have to worry about it taking it a hit if you sign up for a card. However, anything below that can have a negative impact. For this reason, focus on boosting your credit score prior to applying for other cards. This will make it easier to become approved, too.
With these credit card myths in mind, hopefully you'll be more open to taking part in the application process. There's no denying the fact that credit is a common payment, though not everyone uses it at the same pace. In fact, many people keep their cards for emergency situations or purchases that are simply too expensive to make at the moment. It never hurts to have options, so research credit cards so that you can find the best one to apply for.
"It's good to have a remaining balance on your credit card." For those that believe this to be true, think again. Bob Jain, as well as other names in the world of finance, will tell you that this can actually increase your interest rates. In short, you'll end up owing more over time. This is why it's in your best interest to pay off your debts, in full, as early as possible. This will allow you to save more money than you would have otherwise.
"One should have each of the major credit cards." It's been said that having one of each major credit card, including Mastercard, Visa and American Express, will help when visiting various locations. What if you're in a restaurant, for example, and they won't take your American Express card? Rest easy knowing that situations like these are extremely rare. In fact, nine times out of ten, you'll be able to make payments with the card you use the most.
"There's nothing wrong with signing up for numerous credit cards." This is largely dependent on one's unique situation. For instance, if you have a credit score in the 700s, you may not have to worry about it taking it a hit if you sign up for a card. However, anything below that can have a negative impact. For this reason, focus on boosting your credit score prior to applying for other cards. This will make it easier to become approved, too.
With these credit card myths in mind, hopefully you'll be more open to taking part in the application process. There's no denying the fact that credit is a common payment, though not everyone uses it at the same pace. In fact, many people keep their cards for emergency situations or purchases that are simply too expensive to make at the moment. It never hurts to have options, so research credit cards so that you can find the best one to apply for.
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For additional information regarding what you've just read, please consult Bobby Jain.. This article, Credit Card Myths Debunked By Robert Jain is available for free reprint.
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