Credit Card Rumors

Don’t believe everything you hear

There are a lot of myths floating around when it comes to credit cards. Some of these are believed by many people, but we should set the record straight and deal with some helpful facts.

Stolen Cards

Probably the biggest misconception about credit cards is what happens if your card is stolen and the thief goes on a spending rampage. Well, the truth is you don’t really have to worry too much as credit card holders are generally only charged the first $50 of a crook’s spending spree. In fact, you might not even have to pay anything as long as you report your card lost or stolen as soon as possible. Any transactions made with lost and stolen card are unauthorized purchases.

No Credit, No Card

Another rumor that many people believe is that if they have a bad credit rating or no credit history, they won’t be able to get a credit card. Although some types of credit cards are only available for those who have above average ratings and a lengthy credit history, there are numerous cards available for people with no credit history, bad credit and below average credit. You can also consider applying for a prepaid credit or debit card or a secured credit card.

Bigger’s Not Always Better

When it comes to credit card limits, bigger isn’t always necessarily better. Having a high credit limit can sometimes get you into trouble as you may tend to spend beyond your means. This could lead you into higher debt. Often times a credit card company will automatically raise your limit without you asking. However, if you feel uncomfortable with a higher credit ceiling you can call the issuer to have it lowered.

Canceled Cards

Some people believe you can cancel a credit card account by simply cutting the card in half or melting it in the microwave. This isn’t true. If you want to close the account you need to notify the issuing company and have it done properly. You should also be aware that canceling a card doesn’t remove it from your credit report. Old credit card accounts can actually stay on your report for up to seven years.

King of the Cards

When it comes to which credit card is the most widely accepted, many people believe it’s Visa. However, in the US, MasterCard is really just as popular with merchants. Discover credit cards are more popular in other parts of the world than in America, and American Express is actually more widely accepted in Europe and Asia than in North America.