Busting Credit Card Myths One Fallacy At A Time


A ton of bad information about credit and credit cards continues to spread, and social media is a large source of misinformation. Social media allows anyone and everyone to share what they know— or think they know about—a particular subject. It’s always recommended that you fact-check any information you obtain from any source. Extra due diligence when vetting financial information is even more important.

Credit cards are a topic discussed at length by internet financial gurus. As such, tons of credit card myths have continued to persist over time. Unfortunately, there aren’t enough myth-busters spreading the proper messaging. Let’s squash a few of the largest myths.

One credit card myth ranks at or near the top of the list. Let’s see if you’ve heard this one.

Myth: When considering getting a credit card, consider the interest rate first.

Many people will have you believe that the interest rate is the most important thing you should consider before getting a credit card. Unfortunately, it isn’t. If you use your credit card each month and pay off the balance in full when you get the bill, the interest rate will never apply to you. Simple, right?

So, whether the interest rate is 19%, 28%, or some other variable rate, it’s irrelevant if you consistently pay off your balance in full. Many people might challenge you when you tell them this, so prepare for a rebuttal.

Although this myth has now been busted, you still may not agree. Interest rates do matter when it comes to debt—not so much for credit cards. Interest rates should be scrutinized when considering a car or home loan, as both are big-ticket items that carry long-term debt. Credit card debt is something someone should only plan on having for a short time. However, that’s not always the case because many people charge their cards consistently.

Think about it like this: If someone is getting a credit card and is most concerned about the interest rate, they’re already telling themselves (mentally) that they will overspend and may not pay off the balance in full each month.

So, what is the first thing someone should consider when getting a credit card? (All of these would be acceptable answers.)

  • Does the card offer rewards?
  • Is there an annual fee?
  • Can you make the on-time payments each month?

Myth: It isn’t good to max out your credit card.

Fact: Maxing out your credit card is only bad if you don’t pay off the balance (hopefully in full) when you get the bill.

Myth: It’s good to keep a small balance on your credit card month over month because that helps boost your score.

Fact: If you have a balance rolling over each month, that means you’re getting hit with an interest charge. If you are using your credit card and paying off the balance in full, that shows that you’re an active user (makes you look good to the credit bureaus,) and you avoid paying more than you owe. Why pay more money to your financial institution when you don’t have to?

Consider these myths if you decide owning a credit card is for you.

RELATED CONTENT: Report: Massive Glitch In Student Loan Transfers Affects Millions Of Borrowers’ Credit Scores

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Jasper Smith, retirement, plans, early, financial roster, experts
Credit: Gregory Collins (Smoothpix.net)

Jasper Smith is the founder of The #BuildWealth Movement®. He’s worked in the financial services industry for over 15 years and holds a life insurance license, multiple securities licenses, and the Certified Retirement Counselor (CRC®) designation. 



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