The Reality Behind Fallacies About Credit Card – Things You Should Know

Credit cards are one of the most sought after financial tools today with increasing popularity due to the attractive benefits introduced. The well-known form of credit is, however, also misconceived under certain circumstances. 

RBL Bank Credit Card

Credit cards come with a variety of features, categories, and benefits. However, all credit card types come with some terms and conditions of use. Due to such intricacies, it is common that individuals often get confused and give in to the myths about these payment cards.

It is thus always advisable to have any such misconceptions and queries clarified before applying for a credit card. You can consider getting in touch with the card issuer directly to gain a better understanding of how the card functions. Below given are some instances where users often give in to myths, which may keep them from enjoying several credit card benefits.

3 popular myths about credit cards busted

Misconceptions, in this context, are mostly regarding how to get a credit card, its mechanism, limitations, benefits, etc. Although credit cards are one of the most convenient financial options, individuals must be responsible and well-informed when using them.

All credit card types have their own sets of specifications, which the card owner must be well-aware of. When it comes to the misconceptions, you must have all of them debunked to make sure that you use your credit card wisely. Here are some of the most widespread myths about credit cards:

1. Terms of credit cards are non-negotiable

It is often assumed that credit card terms set by a financial institution are absolute and cannot be adjusted. The truth behind this fallacy is that some financial institutions might consider providing you with some concessions for your long-term benefit based on your profile. You can negotiate with the card provider to reduce the interest rate on your credit card or improve its limit with higher income eligibility.

One has to know how to get a credit card from a reliable institution so that he/she can approach the lender for any financing urgency.

2. Keep a part of the credit limit free at all times

Often, individuals go by the notion that they need to keep a part of their card’s credit limit free to keep the credit utilisation ratio low. Mostly, it helps improve an individual’s credit score. The reality, however, is that there are no such compulsions that you must do so. 

Firstly, credit utilisation ratio is calculated based on the total credit available to an individual and not only the card’s credit limit. Thus, other existing credits can be observed to meet this credit score requirement. Then, there are better and smarter ways to increase your credit score through your credit card as well. For example, you can pay off the entire bill amount within the due date.

Depending on your credit card type, you can also request the financial company to increase your credit limit and use it for various purchases while keeping credit utilisation low.

3. Interest on credit cards is applicable irrespective of their use

Owning a credit card does not necessarily mean that you need to keep paying exorbitant interest rates whether you use or do not use your card. It might come as a surprise that you can use your credit card without having to bear any extra charges or fees. 

You can pay your monthly dues in full to avoid such added charges. All you need to remember is to clear your dues before the last date so that you do not end up defaulting.

Apart from these, there are also a few myths related to the pro and cons of owning multiple credit cards which you must clarify before approaching a financial institution.

The affordability of credit cards is also questioned most of the time, which leads to a number of confusions and delusions. Financial institutions provide numerous credit card types to suit your monetary needs affordably. For instance, the SuperCard comes with unique benefits and discounts to assure affordability.

To enhance your experience of availing credit cards, financial companies provide several exciting offers. Pre-approved offers from lenders like Bajaj Finserv are one of them. You can have your credit card application approved easily and in minimum time with this offer which is also available on several financial products, like personal loans and business. You can visit enter some basic details to take a look at the pre-approved offers.

Before you apply for a credit card, you must research well about the ins and outs of it. This will not only debunk any fallacies but also help you use your credit card in a better and wiser manner.

Aryan Singh

Aryan Singh is an experienced Financial Consultant and Tech Reviewer who has 6+ years of experience in the field of finance, business, and technology. He is very passionate to write about Finance, Business, Technology, Gadgets, Digital Marketing, Guest Posting, Fashion, Lifestyle, etc.

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