Credit Card Myths

3 Min. Read
Financial advice is everywhere, but unfortunately, not all of it is accurate. In fact, some of the most common beliefs about money are based on outdated information or misconceptions that can make it harder to reach your financial goals.

In this Myth vs. Fact series, we’re separating fact from fiction so you can make more informed financial decisions. Here, we’re tackling some of the biggest myths about credit and credit cards.

Myth #1: You should never use credit cards

Credit cards aren’t inherently good or bad—they’re simply a financial tool. When used responsibly, they can help you build credit, manage purchases, and provide valuable fraud protection. Like any financial product, understanding how credit cards work and using them wisely can help you stay on track toward your financial goals.

Learn more: How to Use a Credit Card Responsibly

Myth #2: Debit cards are always safer than credit cards

Debit and credit cards each offer advantages depending on how you use them. Using a credit card can give you financial flexibility and help you build a strong credit history. A debit card is convenient for everyday purchases and can help you manage your spending and avoid debt.

Many people benefit from using both a debit card and a credit card. The key is understanding which card works best for your goals, your budget, and the purchase you plan to make.

Myth #3: Checking your own credit score hurts it

Only hard inquiries—like those that occur when you submit a credit card application—may have a temporary impact on your score. Checking your own credit score is considered a soft inquiry (or soft pull), which doesn’t affect your credit score. In fact, it’s a good idea to review your credit report and monitor your score regularly to stay on top of your credit health.

Learn more: How to Monitor Your Credit Score

Myth #4: You need perfect credit to get approved for a credit card

Credit cards are available for people with a wide range of credit histories. Having a higher credit score may help you qualify for more favorable interest rates or rewards, but many credit card issuers offer cards designed for people who are building or rebuilding their credit.

Myth #5: Carrying a credit card balance improves your credit score

One of the most common credit myths is that you have to carry a balance to build good credit. In reality, paying your statement balance in full each month is one of the best ways to demonstrate responsible credit card use (and it helps you avoid interest charges).

Myth #6: Closing a credit card helps your credit

In some situations, closing a credit card can lower your credit score by reducing your available credit or shortening the average age of your accounts. Before you decide to close a card, consider how it may affect your overall credit profile.

Myth #7: Having multiple credit cards ruins your credit

The number of credit cards you have matters less than how you manage them. Paying your bill on time, keeping your balances manageable, and avoiding unnecessary debt are generally more important than the number of cards in your wallet.

That said, maintaining just one or two credit cards can make it easier to build smart financial habits that stick, especially if you’re just starting out.

Myth #8: It’s enough to make the minimum payment each month

Making the minimum payment keeps your account in good standing, but it also means interest continues to accrue on the unpaid balance. Paying more than the minimum whenever possible can help you reduce interest costs and pay off your balance faster.

Myth #9: One missed payment can ruin your credit

Missing a payment can have financial consequences, but it doesn’t have to derail your long-term financial goals. Acting quickly can help you minimize fees, protect your credit, and get your account back on track.

Marine Credit Union: Helping You Separate Fact from Fiction

With financial advice coming from so many different sources, it can be tough to separate fact from fiction. Marine Credit Union is here to help with reliable information that empowers you to make more confident financial decisions.

Explore more articles in our Learning Hub to continue building your financial knowledge.