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What Are Some Credit Card Myths?

Credit card myths abound these days. This could be due to the abundance of credit card companies and different types of credit cards. It could also be due to the fact that not everyone really pays attention to the fine print that credit card companies lay out. Whatever the reason, there is still a lot of information about credit cards that circulate - information that is not accurate at all.

Perhaps one of the most common credit card myth is that if you do not have a good credit score, you will not be able to get a credit card. The truth is that there is a credit card for any person. Even those with bad credit can get a credit card. However, if you have bad credit, then you will most likely have to pay higher interest rates and get lower credit limits.

Another common credit card myth is that, when you close a credit card account, your credit score will suffer. This is simply not true. As a matter of fact, closing a credit card account while keeping others active and in good standing might even score you points. The important thing is the latter part - that your remaining credit card accounts are in good standing.

A lot of people think that the higher the credit limit is, the better. While it can be better in the sense that you can buy more expensive things, having a high credit limit does not necessarily mean a better credit score. The important thing is that you do not max out your credit card all the time and that you keep your balance to a fraction of the credit limit.

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