Amara walker August 5, 2022

Many times while cutting down on your expenses, you must have thought of credit card as your saviour. A credit card can be really tempting in times of problem. It can be your only solution when you are willing to go for maximum savings.

Many people do not take a credit card because they have some myths about credit cards. It is advisable to clear all your myths and then use your credit cards. If used effectively, credit cards can prove to be a boon for you and also help you save money for your future.

Some people make judicious use of credit cards and benefit from them. Hence, they do not need to think about their finances. As a borrower, if you are aware and do not believe the common myths, you can also benefit from it.

Debunking the credit card

Many people who have myths about credit cards prefer borrowing loans instead. Although there are loans available, they can be an expensive deal. You can borrow various loans such as personal cash loans for bad credit. In Ireland, people who cannot afford credit cards go for these loans.

These loans are not difficult to borrow and do not have many burdens. But every loan requires timely repayment and should be taken care of within time. The same thing applies to your credit card bills too.

Common myths

  1. If you own a credit card, it will make you financially able

FACT: Many people believe that if you own a credit card, it will help you improve your financial standing. You may have heard many people telling you that you can increase your credit rating with a credit card at a young age.

Having a credit card will increase your credit rating. But this is not true. Your credit rating is determined by various other factors along with your credit card.

For example, if you have a student mortgage or a loan and if you do not fulfil it, this can also lead to a bad credit rating. Various loans offer you leverage, such as quick money loans online.

Making timely repayments will help you to increase your credit rating. Also, your credit rating depends on the times you have applied for the loan.

Your credit application also depends upon the amount of time that you have applied for the loan. If you have a loan burden on you and you are unable to fulfil that burden, it may lead to bad credit history.

 If you have a credit card and you are unable to pay off and afford that red card, it can have a negative effect on your credit and savings.

2. If you are associated with any bank, you will get a credit card

Fact: It is commonly believed that if you are associated with any bank, it will be easier for you to get it corrected from that bank. On the contrary, every bank has a certain process for issuing a credit card.

If you do not go through that approval process, you will not be guaranteed a credit card by the bank. These banks process your application and analyze your financial status.

You may be denied a credit card if you have a bad financial status. Sometimes, your current bank may limit your box as an existing customer.

On the contrary, some of the banks may exceed your perks as an existing customer. These conditions depend on the bank for which you are using a credit card.

3. In the case of your credit card, only a minimum payment is required

FACT: This is the biggest with that you only have to pay the minimum amount on your credit card. If you are considering owning a credit card, you must be fully aware of the payment technicalities.

You cannot avoid making credit card payments, and instead, you have to make those payments in full. Making minimum payments will never solve your problem and can increase your debt over the years.

Having a credit card that can be a burden on your finances may make you overburdened with debt. It may also collect interest over here that may be difficult to repay. Hence, pay your credit card debts in full and be debt free.

4. If you miss out on a payment, it will not impact your credit rating

FACT: You may have heard many people saying that if you miss a credit card payment, it will not impact your credit Card rating. It is absolutely wrong. Missing out on payment of your credit card or any that will impact badly on your credit score.

Do not avoid any of the payments. Your credit score depends on your borrowing history and also your financial activities. These activities are studied over a period of time, and then your credit history is created.

It is important to stay on top of things. Otherwise, it can limit your financial borrowings in the future. You can set up a direct debit as it will help you to prevent forgetting any kind of repayments.


Many people have several myths about their credit cards that they do not bother to debunk. If you are using a credit card, knowing all the technicalities and guidelines is essential. You can look out for various myth busters to use your credit card carefreely. Also, these myths can stop you from using your credit card efficiently in the long run.