7 Myths about Credit Cards you need to know

There are a lot of myths about credit cards and it’s important that you learn about them. The more factual information you get on credit cards, the more you are going to get out of them throughout your lifetime. Too many people don’t realize certain things about credit cards that they should. This article will provide you with all of the information you need when it comes to credit card myths so you will know the truth.

1. Writing “See ID” on the signature line will stop thieves

Some people believe that writing “See ID” on the signature line on the back of their credit cards will stop thieves from using them, but this is not the case at all. These people think that salespeople are going to look at the back of the card and ask for ID when they see that “See ID” is written on it. The truth is that an unsigned card is technically invalid, so you will need to put your signature on yours.

2. There is no credit limit on an American Express card

If you think that there is no credit limit on your American Express card, you will want to think again. While American Express commercials claim that there is “no preset spending limit,” the fact is that now AmEx does not issue just charge cards, which are a very effective way to rack up a lot of debt. American Express issues credit cards as well, which allow you to carry a balance.

3. You need to have one of each of the big cards

While some people may tell to you that you really should have one of each of the big cards (Visa, Mastercard, American Express and Discover), the truth is that there is nothing wrong with just having one or two. The more credit cards you have, the more likely you are to go into debt. It is important to keep this in mind as you think about just how many cards you want to apply for.

4. You can boost your credit score by paying more than you owe

Another common misconception about credit cards is that paying more than you owe can actually increase your credit score. The reality is that whether you have a credit of $100 or $1,000, it will still show up as a zero balance when it comes to scoring purposes.

5. Using your credit card wisely can help your credit score

Perhaps one of the biggest credit card myths that exist is that using your card wisely will help your credit score. While it’s true that having a bank account and using it responsibly will demonstrate that you are responsible, it won’t be factored into your credit.

6. Keeping your Balance under 30 Percent of your total credit limit is good for your score

While it might seem like keeping your balance under 30% of your total credit limit could do wonders for your credit score, the truth is that it really doesn’t matter at all. This simply doesn’t make any sense, so you don’t want to get all caught up in trying to do this.

7. You can go over your credit limit and pay it back before the due date but still be fine

Going over your credit limit is never a good thing, and paying back the full amount before the due date simply won’t do anything for you at all. You always want to keep close track of your credit card spending so don’t end up going over your allotted limit.


With so many different credit card myths out there, you will definitely want to make a point of getting all the factual information you can. One of the most common reasons that people fall into credit card debt is because they acted according to the myths that have been perpetuated throughout the years by uninformed consumers. The more time you take to learn these facts, the better off you are going to be. Credit card debt can take many years to get out from under, so you will therefore need to arm yourself with knowledge as much as possible.


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