Credit Card Newbies – Stay Away from These Myths.

Credit cards have become a coveted financial tool in today’s world, with almost everyone aspiring to have one. However, obtaining a credit card isn’t always a straightforward process, especially if your financial history isn’t impeccable. This can pose a challenge for newcomers, such as recent graduates or homemakers who are still navigating the complexities of personal finance.

As a novice in the financial world, it’s natural to be filled with questions, concerns, and even a bit of anxiety about managing your finances. The abundance of options available in the market initially seems like a positive aspect, offering you a multitude of choices. Yet, as you explore these options, you’ll encounter varying mindsets—some adamantly against credit, while others advocate for it. However, it’s important to recognize that not everything you hear is true, especially when it comes to the myths that often surface during your financial exploration.

What possible myths can be there regarding credit cards, right?

Well, there are many a few of them will be the ones we will talk about in this article. Here are a few Myths related to the credit cards –

Myth – Apply for a lot of credit cards at a same time, this will increase your chances of approval.

Fact – It’s a common misconception that applying for multiple credit cards simultaneously is a smart move. In reality, doing so can have adverse effects on your credit score. Now, you might wonder, as a newcomer, do you even have a credit score to worry about? It’s true; you won’t have a well-established credit score in the traditional sense. However, credit bureaus do assess your financial history and assign you a score based on that. Your credit score plays a pivotal role in securing favorable deals, offers, and access to the best credit cards on the market. Moreover, it’s not limited to credit cards; your credit score will also shape your ability to obtain financial assistance in the future. So, it’s wise not to underestimate the significance of your credit score.

Myth – If I hold more than one credit card, it will be bad for my Credit Score.

Indeed, having multiple credit cards doesn’t automatically harm your credit score, provided you maintain a healthy “credit utilization ratio.” Owning two or three credit cards can offer various benefits for your daily life. However, it’s essential to understand that these credit cards come with additional factors, primarily your repayment behavior. If you consistently and responsibly repay the borrowed funds, you’re on the right track. Being responsible in managing your credit is always a prudent choice, and there’s no harm in it.

Myth – Even if you pay your credit card dues late, it is okay, as long as you repay it in full

Once the due date is known, aim to settle the bill ahead of time, preferably in full. Ignoring due dates results in incurring both extra interest charges and late payment fees. Furthermore, the initially billed amount received before the due date becomes augmented with additional fees, leading to an increased total. Such a practice can have a detrimental impact on your credit report, potentially causing a significant drop in your credit score.

Myth – A Credit Card charges and annual fees are very expensive

The affiliated charges and fees associated with credit cards are usually well-understood by those who have studied them before applying. For some, the cost can appear prohibitive, representing a significant sum of money, and in certain cases, this perception holds true. If repayments are consistently missed, any financial instrument becomes unsuitable. Responsibility in managing your credit is crucial. To ensure you’re not at a disadvantage, it’s essential to assess the benefits and fees of your credit card. Moreover, not all cards are costly; some come with minimal fees, and there are even lifetime free options like the SBI Unnati Credit Card, which leaves little room for dissatisfaction.


Credit cards can offer significant advantages, especially when you’re a newcomer looking to establish your financial standing in society. However, it’s crucial to thoroughly explore all available information and options to make an informed choice.

In any new endeavor, whether it’s financial or otherwise, there are always advice, choices, and, most importantly, both facts and myths. Many misconceptions surround credit cards and financial management. By gaining access to accurate information and dispelling these myths, you can better navigate the credit card landscape and find the one that suits your needs best.

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