Myth: Carrying a Balance Boosts Your Score
The Truth: Nope. Paying interest is not a prize. Your credit score loves it when you pay your bill in full, not when you gift the bank free money every month.
Myth: Closing Cards is Always Bad
The Truth: Sure, closing an old account might ding your score a tiny bit temporarily (because it lowers your total credit limit), but keeping fee-laden, unused cards “just for your score” makes no sense.
If you’re done with a card—especially one charging you a $95 annual fee for perks you don't use—cut it loose. Your wallet (and sanity) will thank you.
Myth: More Cards = More Debt
The Truth: Credit cards don't spend money; you spend money. Having multiple cards just means you have more total credit available.
Actually, having more credit available but using very little of it (low utilization) boosts your score significantly. Self-control, people. It’s a vibe.
Myth: Rewards Cards Are a Trap
The Truth: Only if you’re bad at math. Used right, rewards cards pay you for spending you’d do anyway.
If you buy $500 of groceries with debit, you spent $500. If you buy it with a Blue Cash Preferred, you spent $470 (after 6% cash back). Who is the trap really for?
Myth: Applying for Cards Tanks Your Score
The Truth: A hard inquiry drops your score by maybe 5 points. It bounces back in a few months.
Unless you are applying for a mortgage next week, don't sweat a 5-point drop to get a $200 sign-up bonus. The math is in your favor.
The Real Truth
Credit cards aren’t evil. They’re power tools. Use them correctly, and you build something great. Use them wrong, and you lose a finger. Unpack the myths, pay attention, and you might actually come out ahead.
*No myths were harmed in the writing of this blog. Turns out, common sense works if you try it occasionally.