Paying your entire credit card statement in full every month is a sound financial strategy.
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.
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.
This mistaken belief no doubt arises from the truth that you must use your credit cards if you're to generate positive score reporting.
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.
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.
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 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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