There’s a lot of myths behind credit cards, and even around credit scores. Perhaps it’s because, when something feels daunting and overwhelming, many of us feel like we’re unable to take in any more information about that sort of topic. Well, we’re here to clear up some confusion and deliver a few facts straight and easily.
- You’ll raise your credit score by using a credit card, not a debit card. While a debit card is a helpful tool for not going into a crazy amount of debt, it’s not going to do your score many favors unfortunately.
- Making minimum payments are not your best bet at paying off your card–chances are, when you make the minimum payment, you’re mostly only paying off accruing interest. If you make more than the minimum payment, you’ll be out of debt a whole lot quicker.
- Closing unused credit cards may actually hurt your score since you’ll make your credit history appear a lot younger than it actually is. Just cut that card up and move on.
Image via PYMNTS.
