Most Americans think they know the majority there is to know about credit cards and the credit industry.  When it comes to credit cards, however, there are actually several common falsehoods that have actually been passed from card holding generation to generation.  Here we’ll discuss some very common beliefs and practices when it comes to using a credit card – and believe it or not, many of them are purely based on myth. If you get caught up in some of them, you’re credit score could actually suffer for it.
Firstly, many Americans believe credit card accounts aren’t open until activated.  We receive a card in the mail that has a sticker with a toll free number on the back.  Most of us think that this card is not part of our credit report or credit ratio until we decide to pick up the phone, dial the number, and give the okay to activate the card.  No so, say credit industry experts!  As soon as you apply for the card, your credit reports are pulled and the account almost immediately shows up as active on your credit report.  Simply applying for a credit card can even damage your credit score.
Another common belief among consumers is that if credit card bills are paid in full and on time, there is no need to worry about the credit cards effect on your credit score.  Credit ratio basics prove this belief to be a myth, one that blissful unawareness of can hurt your credit score.
Remember that paying your balance on time and in full is great for your finances, stress level, and even prevents large dings to your credit score but there is another part of the equation you must remember.  Even if you’re doing both of these things, you still may be using too much of your credit limit.  Your debt to credit ratio which consists of your total credit limit (across all cards) and how much of that credit you use makes a difference within your FICO score.  When you hear “be wary of maxing out your cards” even if you pay on time, this is why.  When in question about why you have a low credit score/bad credit or how to repair your credit, contact Credit Strategies at 480-502-5554.

Credit Strategies
480-502-5554 * www.911CreditPro.com * Mick@911CreditPro.com