Six Myths About Credit Cards You Don’t Need to Believe
Friday, October 31, 2014, 1:00 AM | Leave Comment
The myths about credit cards are everywhere, but you can move past them if you think critically about your own finances in an intelligent way. You must remember credit cards can help you if you use them the right way.
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Credit Cards Produce Debt
Credit cards only produce debt in your life when you are allowing the debt to mount. There are times when you cannot help a little overflow, but you need to think about what you can do about your payments. If you can make the payment for the outstanding balance every month, you will be in good shape.
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Credit Card Rewards Are Useless
There are credit card reward programs that can benefit everyone in the family. You can take vacations with your earned points, get discounts at stores you go to often, and get prizes that are actually useful. Businesses can use these same rewards to benefit their office or their bottom line. You just need to think about where you use your money most and decide which cards will work to your advantage.
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Business Cards Are the Same as Personal Cards
A business credit card is far different from a personal account. As Creditguard.org says, a business credit card has a rate that is based on the credit rating of the business, and the credit card help to improve the credit of your business. These cards do not change your personal credit score, but are often needed when you need to make purchases quickly.
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Only Cards with Annual Fees Are Worth Having
There are many credit card companies that charge annual fees for cards that are not that exciting. Also, there is a push in the industry to get away from annual fees. There are many rewards programs which don’t feature annual fees. You can pay nothing for the card, benefit from it, and get rewards at the same time.
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Credit Card Interest Rates Never Change
Your credit card interest rate will change often if you are on a variable card. You can also contact the bank to get your interest rate changed. They can quickly review your account to see if they can lower it. You can use this as a way to save money on all your purchase interest fees in the future.
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Carrying Credit Cards Is a Bad Idea
Sometimes you need a credit card in a pinch. You can carry the card to only use for emergencies or long vacations. When you get paid at the end of the month, you can make the payment for the full balance.
Credit cards are not all bad, and you need to ignore the myths about credit cards that are not correct. Use them to your advantage and do your research to find ones that will actually help improve your financial situation.
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