Common misconceptions about credit cards and the

[jsucool76]

So I thought it could be fun and somewhat educational if we shared some misconceptions people have about credit cards, and what the facts really are. We'll see if it takes off  

I'll try to start us off with the worst one I ever hear...

You don't accrue interest as long as you make your minimum payment - BOOM, couldn't be wronger - Gotta pay in full if you don't want to pay interest. 

Anyone else got any they heard (and hopefully corrected the person you heard it from) ?

So far: 

• Credit Cards always lead to debt
• Debit cards are also credit cards because you can push "Credit" on the POS terminal (though one bank does offer a card that is both a debit and credit card (See: The Duo Card) 
• Credit cards are free money
• Paying with a credit card means you can't afford what you're trying to purchase - In fact we just want rewards and benefits!
• Credit cards are only for people with no money
• Your credit profile will only benefit if you carry a balance/pay interest - NEVER PAY INTEREST! 
• All credit cards are the same
• Checking your own credit harms your credit score - Checking your own credit (through a self credit check/credit monitoring service) will NOT harm your credit!
• You need to charge large amounts to get a good credit score
• Amex cards are the greatest! - Psht. 
• Having too many cards is harmful - Just treat em right and you'll be fine =] 

[Anonymous]

Credit cards are bad and lead to debt.

[Anonymous]

I especially love the people who claim their Debit card is also a Credit card "Because i can run it as credit and it goes through."

[IncrsCredScore]

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@Anonymous wrote:

I especially love the people who claim their Debit card is also a Credit card "Because i can run it as credit and it goes through."

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I was one of those people under that misconception.  What a rude awakening to discover that none of my "debits" effected my credit report at all.

[Callandra]

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@Anonymous wrote:
Credit cards are bad and lead to debt.

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I've heard that one a million times. 

Also: credit cards are free money. 

[Anonymous]

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@IncrsCredScore wrote:

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@Anonymous wrote:

I especially love the people who claim their Debit card is also a Credit card "Because i can run it as credit and it goes through."

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I was one of those people under that misconception.  What a rude awakening to discover that none of my "debits" effected my credit report at all.

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My brother in-law is one of these, sadly.

He doesn't like "normal" CC's since his Ex-GF ran up about $35,000 in CC debt in his name which was charged off, along with two mortgages, 3 auto-loans....etc.

[Dw4250]

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@Anonymous wrote:

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@IncrsCredScore wrote:

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@Anonymous wrote:

I especially love the people who claim their Debit card is also a Credit card "Because i can run it as credit and it goes through."

---

I was one of those people under that misconception.  What a rude awakening to discover that none of my "debits" effected my credit report at all.

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My brother in-law is one of these, sadly.

He doesn't like "normal" CC's since his Ex-GF ran up about $35,000 in CC debt in his name which was charged off, along with two mortgages, 3 auto-loans....etc.

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Makes sense that he would feel that way.  But in that scenario the problem was the GF not the CC.

[JSS3]

A response to my sister telling her boyfriend he needs to pay her CC back multiple times a month and with big payments:

"Credit Card Companies want you to use their cards. That's what it's there for. You don't have to worry about utilization, multiple payments, waiting until after the statement closes to use it again, or making big payments because they(CCC) don't."

Keep in mind, dude has bad credit and that's why she allowed him to become an authorize user on her card. 

[PandiferBear]

I don't know why, but some people seem to think that if you pay with a credit card, it is because you cannot afford to purchase otherwise. NO, I pay with a credit card for the rewards and consumer protection.....

[PandiferBear]

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@Callandra wrote:

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@Anonymous wrote:
Credit cards are bad and lead to debt.

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I've heard that one a million times. 

Also: credit cards are free money. 

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Sadly, I know some of these people.......