We all have information about the credit and how to use it that may be wrong. It is important to walk through the myths and get to the truths that will help us to maintain, rebuild or start a good relationship with loans that last for many years.
Most of us have passed on information telling us to get rid of the cards we don’t use or just use them for emergencies. These practices are presented to many of us as healthy ways to show good credit ratings. Although myths are many, a bit of information is all you need to correct a lot of bad information.
Myth # 1 You don’t have to use credit cards for emergencies
A credit card, which is often used and paid in time, shows the credit card company that you can manage the credit responsibly. The more the activity of a credit card company sees responsibly, your credit score improves.
A card used only for emergencies does not give the credit card company enough opportunity to observe how to deal with the credit. The routine credit activity paid on time shows a responsible credit management, and these are the things that raise loan rates and credit limits.
Myth # 2 You have to close the cards that you have not used in a while
The more you have a card, the better it reflects on your total balance. This means that a card you use for 5 or 10 years that is not used much is always valuable. When you close this card, your available balance decreases, which is negative on your balance.
Credit age indicates credit default, your ability to maintain a credit account positively over a long period of time. This is attractive for exhibiting companies. A better approach to dealing with older credit cards, which do not bring a lot of benefits, is to make small purchases every few months just to keep the card active. The lending activity is positive if the cards are décaissã in time.
Myth # 3 The minute you use your credit card interests begins by accumulating
They never have to pay interest on loan purchases if they are paid in full within the allotted time. Interest only applies to all leftovers that remain in place after the grace period.
The faster payments are made, the more your loan will be improved, and this is reflected in your rising credit score. Any payment in time reported to the credit Bureau is a positive note on your credit belt.
Myth # 4 Traders can put forward the number needed for credit purchases
By law, a trader cannot charge a minimum purchase of $10 for credit cards. Nothing more. Beware of traders who need more than $10 to spend if you use a credit card, this is not legal.
Myth # 5 You must pay your balance before the due date
If you pay your balance before the due date, you will not get a payment history because you will not be charged. If you keep your unpaid purchases for a full billing cycle, you can create an invoice and report a timely payment to the credit bureau.
It’s OK to do so, because your purchases are not up to the end of the billing cycle after the grace period has expired, interest. If you allow an invoice to be created and paid for, do whatever is in your power to help your loan positively. These positive one-time payments will be reflected in your credit score and with the increase in your borrowing limit.
There are a lot of credit myths out there that confuse a lot of people and use their credit cards in a non-beneficial way. It is worth doing your homework and demystifying the many myths surrounding credit cards,-visit us here to learn more about the best credit cards and how to make them work for you.