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We were all given incorrect information about credit and how to use it. It is important to find out the myths and get to the truth that will help us maintain, rebuild, or establish a good relationship with credit that will last for years.

Many of us have been given information telling us to get rid of unused cards or use them only for emergencies. This practice is presented to many of us as a healthy way to use credit properly. Although there are many myths, some information is needed to correct a lot of incorrect information.

Myth 1 You should only use credit cards in emergencies

A credit card that is used frequently and is paid on time shows the credit card company that you can manage your credit responsibly. Increased activity that a credit card company sees responsibly improves your credit score.

A card used only in emergencies does not give the credit card company enough control over how the credit is handled. Normal, timely credit activity reflects responsible credit management, which increases credit ratings and credit limits.

Myth # 2 You should close cards that you have not used for a while

The longer the card, the better it will reflect your overall credit. This means that a card you have had for 5 or 10 years and that has little use is still valuable. If you close that card, your available credit is reduced and it negatively reflects your credit.

Credit age indicates the credit term, your ability to positively maintain a credit account for a long period of time. This is attractive to issuers. It is better to deal with older credit cards that are not used much, if you plan to make a few purchases every few months to keep the card active. Loan activity is positive if the cards are paid on time.

Myth 3 The minute you use your credit card interest accumulates

You never have to pay interest on the credit you purchase if they are fully paid within the grace period of the day. Interest is only accrued on any remaining balance remaining after the grace period.

The more you make payments on time, the better your credit will be, and this will be reflected in your increasing credit score. Every timely payment to the credit bureau is a positive part of your credit line.

Myth # 4 merchants can determine in advance the amount of credit purchase required

By law, a merchant can only claim $ 10 credit cards. Not more than. Beware of merchants who spend more than $ 10 if using a credit card is not legal.

Myth # 5 You should pay your balance ahead of time

If you pay off your balance before you run out, you won’t be storing your payment history because you aren’t billed. If your purchases remain unpaid throughout the billing cycle, you will be able to create an account and report to the credit bureau on time.

This is good because purchases do not accrue interest until the end of the billing cycle after the grace period. If you allow us to create and pay your bill, you do everything in your power you will use your credit positively. These positive payments will be reflected in your credit rating on time and as your credit line increases.

There are many myths about credit that make many people confused and use their credit cards in useless ways. It’s worth doing your homework and disproving the many myths associated with using credit cards – visit here to learn about best credit cards and how to make them work for you.

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