Credit cards can be a vital financial tool, but they often come with many misconceptions that can lead to misunderstanding and mismanagement. It's important to debunk these misconceptions and understand the benefits of a RuPay credit card:

Carrying a balance is suitable for your credit score: One of the most persistent myths is that having a pending balance on your credit card benefits your credit score. Making only the minimum payments or carrying a balance can cause high interest charges and debt accumulation. Your payment history and credit utilisation ratio primarily influence your credit score. To maintain a good credit score, it is essential to pay off your balance in full each month.

Closing old credit cards improves your credit score: One common misconception is that closing old credit cards will boost your credit score. In truth, closing a credit card can harm your credit score. The length of your credit history is an important factor in your credit score calculation, and closing an old card shortens your average account age. Additionally, closing a credit card reduces your overall credit limit, which may increase your credit utilisation ratio.

All credit cards charge high annual fees: While some come with steep annual fees, not all do. Many credit cards, particularly those designed for students or beginners, feature no yearly or low fees. It’s essential to shop around and compare card options before you decide to apply for a credit card. Thoroughly research available cards to find one that fits your financial situation without overspending on fees.

You need perfect credit to get a credit card: Many people believe that only individuals with excellent credit can obtain a credit card. However, there are cards available for those with less-than-perfect credit. Secured and student credit cards are created for people looking to establish or rebuild their credit. If you have limited credit history, you should consider applying for a credit card that caters to your financial needs.

All credit cards offer the same benefits:  Not all credit cards provide the same perks and rewards. Some cards focus on cashback rewards, while others may offer travel points or discounts at specific retailers. For example, a Rupay credit card may provide distinctive advantages, especially in India, such as easing transactions at local merchants and online shops. When selecting a card, assessing the benefits that align with your spending habits is essential to maximise your rewards.

Understanding the real deal behind these common credit card misconceptions can empower you to use credit responsibly. By debunking these misconceptions, you can make informed decisions if you're looking to apply for a credit card. Remember that when used wisely, credit cards can be an asset in your financial toolkit.