subject: The Truth Behind Credit Card Myths [print this page] The Truth Behind Credit Card Myths The Truth Behind Credit Card Myths
Some people have myths about the credit cards that are hard to dislodge. Even though many consumer groups and card providers are working hard to ensure many people understand the nature and use of credit card, a lot more has to be done to dispel these myths.
One of the most common myths that people have about credit card is that they must have a good credit standing to get a card. While this is true if you plan to get a card that charge low rate of interest, there are many providers that offer high interest rate cards to people who have low credit rating. There are many companies that offer cards that can help you repair your credit and re-establish your credit standing. These cards are issued even to people who have a low credit score. At times, these cards may be issued by securing the deposit that you have in your account. If you fail to repay the card provider, the provider will seize the balance in your account.
Another common myth that people have about credit cards is that having a higher limit on the card is good. Most card companies will increase the limit to encourage users to spend more. Higher limit in the card will lead to a situation where the user spends more than what they can afford. This can result in rise in debt that is out of balance when compared to individuals' assets.
Some people are under the impression that when they close their credit card their credit rating will be affected. The truth is that when you close your account, the details of the card will be reflected in your account for many years. Most credit rating agencies will consider the closing of credit card as favorable and will help in improving your credit score.
Most people assume that card issuers post the payment made by them instantly. Even though there are some companies that post the payment immediately, there are many companies that take 2 to 4 business days to post payment. If the date of posting of the payment is after the due date, your APR may be increased and it may negatively affect your credit score. Also, you may lose certain privileges issued by credit card companies.
One of the best ways of finding out the truth about these myths is to talk to your financial consultant or banker. They will help you in understanding how the program works and how to can manage and take advantage of the credit card system.
Abhishek has been writing articles for over three years. Now only does he specialize in writing articles on finance and credit but you can also check his websitesBusch Gardens Tickets andBody Wrap Shapewear.
