5 Credit Card Misconception Vs Reality

5 Credit Card Misconception Vs Reality

Credits cards have helped make life easier in many ways. They are especially useful in emergencies where you may not be able to access nearby ATMs quickly. While credit cards offer many benefits when appropriately maintained, certain terms may render you confused. Payment management, keeping a good credit score, and understanding terms of credit cards can be difficult if you are new to using it.

Here are five common misconceptions about credit cards that you may have come across:

  1. If You Keep Credit Cards, You Might Become a Shopaholic

It is only a myth that credit cards can make you shopaholic just because it can help accelerate your spending habits. In a few cases, some credit cardholders get carried away while going out shopping.

You may not have to pay hard cash while shopping with a credit card, which makes the spending convenient. However, it entirely depends upon your spending habits and financial discipline. If you plan well before shopping for things, a credit card can save overhead expenses; thereby saving you from becoming a shopaholic.

  1. You Should Not Keep More Than One Credit Card

There is another misconception about keeping more than one credit card. Many people believe that using multiple cards can hinder your financial health, which is not accurate in every case, depending upon how efficiently you manage it.

Different credit cards offer different deals, which you can grab to get maximum benefits. If you have more than one credit card, it can increase your chances of availing various deals offered on different portals. Keep in mind that you should only keep an appropriate number of cards for which you can pay back on time and maintain your credit score efficiently.

  1. You Should Opt for Charge-free Credit Cards

It is a common misconception that a person should only opt for those credit cards having no annual charge than the ones having high yearly fees.

In reality, the credit cards having high annual fees also offer significant discounts than the ones having zero charges. If you own a charge-free credit card, you may not get facilities like free access to an airport lounge or redeem air travel miles. Also, you can avail of many discounts at restaurants and other outlets. Usually, the benefits offered by credit cards having an annual fee are significant and outweigh the cost in most cases. Many banks also waive off this premium if a certain threshold is achieved as per specified terms.

  1. You Can Get Free Credit by Swiping

It is not entirely wrong as when you swipe a credit card, you get free credits for 30-50 days depending upon the billing cycle of the company or the bank.

For instance, if you purchase something on 1st April, you can get interest-free credits till 30th April, after which the bill is generated for the month. However, the dates depend upon the chosen bank.

If you have more than one credit card with different billing cycles, it will help you balance expenses. You can also maximize the interest-free period to avail of various benefits.

  1. You Should Accumulate Reward Points for Better Benefits

Reward points are usually offered by banks to their credit card customers so that they can spend them to avail more benefits at various outlets.

However, you only accumulate rewards if you spend money in the first place. It is only wise to spend on the things you require as per a set budget. Reward points accumulated over time, lose its value or lapse if not redeemed periodically within a set time frame. You can also adjust such points against your monthly credit card bills as per the rules of your bank.

Amidst receiving all the benefits of credit cards, you must also maintain a good credit score to unlock various savings and other benefits. Many reputable banks like Axis Bank offer credit cards with multiple offers customized to individual needs. The bank also provides an online service for quick issue resolution with dedicated customer support. You should always keep in mind to choose the right bank to apply for a credit card and avail their best facilities.


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