8 Things Most Americans Don’t Know About Credit Cards

Your Credit Report Shows as Debt-Free If You Pay Your Balance in Full Every Month

Paying your entire credit card statement in full every month is a sound financial strategy.

Applying For a Store-Branded Credit Card Won't Hurt Your Score

There's a common misconception that opening store-branded credit cards is not the same as opening a general credit card from an issuer like Chase Bank.

Closing Unused Accounts Raises My Credit Score

From a financial planning standpoint, it's true that you shouldn't have more credit cards than you need. However, if you go about canceling your unused credit cards, you might end up paying a price when it comes to your credit score, in two ways.

You Must Carry a Balance To Improve Your Credit Score

This mistaken belief no doubt arises from the truth that you must use your credit cards if you're to generate positive score reporting.

All Credit Cards Charge More or Less the Same Interest Rate

Most credit cards are similar in terms of how they operate. You're extended a credit line, and every month that you make charges you're expected to pay back at least a minimum amount.

It's OK To Carry a Balance If You're Earning Credit Card Rewards

The battle for consumer credit card spending has gotten very competitive, and many card issuers now offer lucrative sign-up bonuses and ongoing perks to attract customers.

Paying Off Delinquent Debts Erases Them From Your Credit History

Making late payments on your credit cards is one of the most damaging things you can do to your credit score, short of filing for bankruptcy.

Credit Reports Are Always Accurate

Credit reports are official records of your financial history, so it makes sense that many Americans believe that they are always accurate. The reality is that this couldn't be further from the truth.

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