Are Credit Cards Really Evil?

Updated: Apr 3

Credit cards are my fave product! There is many benefits that come along with credit cards when you use them responsibly.


But first, some myths:


1. Credit cards are evil. FALSE. If you make your payments on time and don't max out your cards- they'll be nice back to you and your credit score.


2. You have to carry balances and pay interest in order for your credit score to improve. FALSE. There is no reason you should pay extra money in interest monthly for your credit score to increase. In fact, you can use your credit card and pay it back immediately. Not only will you pay $0 interest, but this will still reflect on your credit report!


3. Canceling or closing down credit cards will help your credit. FALSE. keeping credit cards open, even when youre not using them, is actually ideal. Why? Sometimes the cards we use the least (or never) are the ones we've had the longest. Which means if you close an old credit card you are shrinking your credit age. This can and typically does ding your credit score.


4. Opening new credit cards will hurt your credit. True and false. You may initially drop a couple points for pulling your credit, but after a couple months (if you're being responsible)- you should be able to have your score back up to where it was, if not higher.

A lot of times opening a new credit card can build your credit. How is that possible? Well, adding a new credit card not only adds an additional tradeline to your credit report, it also adds to your available credit. Having more credit available than your using helps your utilization which the credit bureaus like to see at or around 30%.


5. I dont need to worry about credit until I'm older. Depends what you consider older? You can and SHOULD start building your credit when you turn 18. Don't wait until you need credit! Start well before you have an immediate need so that when you need it- it is easily available.


These are just a few things to know about credit cards. What questions can I answer? Contact your bank/ credit union today to get some more information on what's available for you!


**this is not an ad or a sponsored post**


Post by: Nayab Abbasi

Instagram: @NayabJabbasi

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