Credit card myths dispelled

Credit cards can be a great way to help you buy things before you have the financial means to do so. As long as you closely monitor your spending, you can use them to your advantage to potentially improve your credit rating and become comfortable looking after your finances.


There are a lot of card products and it can be quite daunting when it comes to researching the right one for you. You will have probably stumbled across a number of myths which has made you unsure of which one to choose.

But not to worry. To help you along this journey, we've compiled a list of common credit card myths that you may have previously seen - and dispelled them.

I'll get into large debt if I get a credit card

You are in control of how much you spend and how you manage your repayments. If you pay off the full amount you owe every month, you're less likely to get into debt.

Having a credit card will affect my credit rating

Yes it will. As long as you manage your account well by making at least your minimum payment each month and staying within your credit limit, this should be for the better. But if you don't manage your account well, then this could harm your credit rating. Lenders like to see that you're good with credit, and they can only judge this based on your existing credit rating.

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Does having a credit card means you're bad with money?

No, it can actually mean the opposite. You can be clever with the way you use your credit cards so make them work for you.

Paying off my credit card every month is good for my credit rating

It's a good idea to pay off your credit card every month however the main thing that negatively affects your credit rating in terms of payments is missing one.

Setting up a direct debit will ensure you never miss a payment

A low APR is the most important thing to look for

If you aren't going to pay off the full amount each month then the APR is important as you're likely to pay more in interest payments over time. But if you're going to pay off the full amount each month, it doesn't really make any difference. If this is the case, you might want to look for a credit card with other benefits such as air miles or rewards.

The more credit cards you have the better

This isn't necessarily true. Your credit rating is determined by the different types of credit you have (which could include a student loan, a mortgage and credit cards), as well as other things such as the length of your credit history, how many times you've applied for credit recently and the amount of debt you have.


Hopefully this has clarified a few things around credit card myths. If you're interested in learning more about what we offer then head on over to our credit cards page.