The No. 1 credit card myth that ‘just will not seem to die’—why you shouldn’t fall for it | CNBC make it

The No. 1 credit card myth that ‘just will not seem to die’—why you shouldn’t fall for it | CNBC make it

The No. 1 credit card myth that ‘just will not seem to die’—why you shouldn’t fall for it | CNBC make it

Managing credit card debt and understanding credit scores can be daunting, especially with persistent myths clouding the truth. One such myth labeled the “cockroach of credit scoring myths,” claims that carrying a balance on your credit card can boost your credit score. However, according to experts like Matt Schulz, chief credit analyst at LendingTree, this is not true.

The abundance of information on managing credit card debt can make it challenging to discern fact from fiction. Schulz emphasizes that following misleading advice can lead to financial trouble, highlighting the importance of understanding how credit scores are calculated. These scores are based on payment history, amounts owed, credit history, new credit, and credit mix.

Contrary to the myth, carrying a balance can harm your credit score. High-interest charges can cause your debt to increase rapidly, particularly if you’re only making minimum payments. This can inflate your credit utilization ratio, negatively impacting your score. Schulz warns against falling for this myth, stressing the importance of paying off balances in full and on time to avoid unnecessary expenses.

As of May 2024, the average credit card interest rate hit nearly 21%, making it crucial to manage credit responsibly. Understanding the factors affecting your credit score can empower you to make informed financial decisions and avoid costly mistakes…………full-loaf-600x400-1-e1700879832480 The No. 1 credit card myth that 'just will not seem to die'—why you shouldn’t fall for it | CNBC make it[read more]

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Rising-Dough-e1700879911412 The No. 1 credit card myth that 'just will not seem to die'—why you shouldn’t fall for it | CNBC make itHow might understanding the intricacies of credit scores and debt management impact your financial decisions as a consumer or potential investor?

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af1de8835e7c980b2b5e3260f77b25f0?s=64&d=mm&r=g The No. 1 credit card myth that 'just will not seem to die'—why you shouldn’t fall for it | CNBC make it
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Cindy
12 days ago

Understanding credit scores and debt management can have a big impact on your financial decisions. It helps you make informed choices as a consumer and investor. You’ll know how to manage your debts responsibly and maintain a good credit score.

8ca56736e623e594656b2f1a18e6efd0?s=64&d=mm&r=g The No. 1 credit card myth that 'just will not seem to die'—why you shouldn’t fall for it | CNBC make it
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Bush
11 days ago

Understanding credit scores and debt management can have a big impact on your financial decisions as a consumer or potential investor, my friend. Having a good credit score can open up opportunities for better interest rates on loans, credit cards, and mortgages. It shows lenders that you’re responsible with credit and can be trusted to repay your debts. On the other hand, poor credit scores can lead to higher interest rates or even loan denials. By managing your debt wisely and keeping your credit score in good shape, you can make smarter financial decisions and potentially save money in the long run. It’s all about being informed and making choices that align with your financial goals.

616b6a256effebf2e7378a3ba9864f70?s=64&d=mm&r=g The No. 1 credit card myth that 'just will not seem to die'—why you shouldn’t fall for it | CNBC make it
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Tatiana monsanto
9 days ago

A high credit score often translates into easier access to loans, credit cards, and favorable terms. With a good credit score, you’re more likely to secure loans for significant purchases like a home or car, and you’ll have a broader range of credit card options with lower interest rates and better rewards.

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stonestreetcoffee.com ☕️ **Discover Stone Street Coffee Company - Your Coffee Haven!** Today's Dough readers, if you're on the hunt for exceptional coffee and cold brew, look no further than Stone Street Coffee Company. We at Today's Dough are smitten with their rich coffee blends and refreshing Cold Brew. Stone Street's commitment to quality shines through in every sip. Now, exclusively for our readers, click the banner above to snag a $5 off coupon on your next order. Experience the finest, ethically sourced beans roasted to perfection. Join the Stone Street community, savor top-notch coffee, and elevate your daily brew. ☕️🌟

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3 Comments
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Cindy
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Cindy
12 days ago

Understanding credit scores and debt management can have a big impact on your financial decisions. It helps you make informed choices as a consumer and investor. You’ll know how to manage your debts responsibly and maintain a good credit score.

Bush
Guest
Bush
11 days ago

Understanding credit scores and debt management can have a big impact on your financial decisions as a consumer or potential investor, my friend. Having a good credit score can open up opportunities for better interest rates on loans, credit cards, and mortgages. It shows lenders that you’re responsible with credit and can be trusted to repay your debts. On the other hand, poor credit scores can lead to higher interest rates or even loan denials. By managing your debt wisely and keeping your credit score in good shape, you can make smarter financial decisions and potentially save money in the long run. It’s all about being informed and making choices that align with your financial goals.

Tatiana monsanto
Guest
Tatiana monsanto
9 days ago

A high credit score often translates into easier access to loans, credit cards, and favorable terms. With a good credit score, you’re more likely to secure loans for significant purchases like a home or car, and you’ll have a broader range of credit card options with lower interest rates and better rewards.

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