Every year new users join the financial services. People who, because of their age, access their first bank account and credit card. Unfortunately, our country does not have a broad financial culture, which sometimes leads to the spread of myths about the use of credit cards.
These myths, although fortunately they are becoming less and less relevant, still exist and continue to have their importance within personal finances. As a result, they can lead to misinterpretations of how to use a credit card.
We are going to review at least four of the main myths that are obviously false or misinterpretations of the reality of this financial product:
This is one of the myths about credit cards that is easiest to debunk. It has its origins in the 1980s, at the height of the easy money boom, when credit and deferred payment cards were practically a gift product or an accompaniment to other products.
However, in fact, the fewer cards you have, the better. Hoarding credit in an unwise way is not a good idea at all, and the massive use of different cards can lead to misunderstandings and mismanagement.
This is more a misinterpretation than a false myth. It is indeed possible to withdraw money with a credit card, in fact, with most credit cards it is possible to withdraw money by debit against the supporting bank account.
Also, it is possible to withdraw money on credit, that is, to withdraw cash using the card’s own credit. However, this is probably one of the least recommended methods of financing.
Firstly, because of the high commissions, and secondly, because credit money on credit cards has a much higher interest cost than any consumer loan that the bank itself can provide you with.
While it is true that, at certain times, especially in the last two decades of the last century, it was relatively easy to access a credit card. However, this is not the case today.
A credit card is a financing product, and as such requires study and the credit limits will be adjusted according to the user’s profile. Therefore, not everyone can access a credit card, and not all credit cards and their limits can be accessed, unless the conditions required by the entity are met.
There is still, in some cases, the unfounded idea that credit history is only affected by financial products that take the form of a loan. This is a gross misconception. In fact, card debt has a significant impact on credit history.