5 Myths Uncovered About Credit Card Debts

There are numerous opinions about credit card debts that simply don’t hold water. A recent NerdWallet survey found that a majority of Americans barely understand basic concepts about credit cards and often end up making some seriously expensive mistakes. Most of the respondents showed some level of ignorance on critical issues such as credit scores and resolving debts. It is no wonder then that most people don’t realize how reputable credit card debt consolidation services such as Consumer Credit Card Relief can be of great help in resolving their debt issues.  

One of the key reasons why many borrowers have an inaccurate picture of credit card debt is a tendency to believe in popular misconceptions and myths about the industry. Dispelling credit-related myths is actually the first step in improving your credit score. To help you sort out myth from reality, let’s look at 5 common misconceptions about credit card debt and how these bogus beliefs cannot help you raise your credit score.


First Myth: Discarding old cards improves your score

Most borrowers lack sufficient knowledge on how the cards stuck in their wallets and purses can affect their credit scores. A majority of credit card users don’t actually realize that closing old credit card accounts could have adverse effects on their score. This misconception comes from being overly cautious and believing that as soon as you pay off a card’s balance you should eliminate it to avoid future temptations.

The reality is that there are two ways in you could harm your credit score by closing a credit card account. For a start, once you close an account you’ll have reduced the number of credit options available to you and, if you still maintain your spending habits, increase your credit utilization ratio, which has a 30% impact on your FICO score. Credit utilization ratio basically refers to the share of credit available for you at any time. Secondly, when you close an old card you’ll be reducing the average age of your credit card accounts. Remember 15% of your score is determined by the age of your credit history.

Rather than close your old account, keep the card active by simply charging a small payment that you can affordably pay off every month. At Consumer Credit Card Relief we show you how you can maintain your credit cards active without running into unmanageable debt.  

Second Myth: Having many cards affects your score

Another common reason why most people close old cards is the belief that your score could potentially be affected by the number of cards you have. This is not entirely true. You may suffer a temporary hit on your credit score every time you apply for a new card but in reality having ten cards is not as bad as, say, having one card. Most credit experts even have dozens of cards and still maintain great FICO scores.

So how many cards should you ideally have? According to NerdWallet, two cards are sufficient just in case one gets lost or cannot be accepted at a particular retail outlet. If you are getting your first credit card, keep in mind that the application will have an impact on your score so try to space out each application by around six months or more. Don’t apply for tons of cards with high yearly fees within a short duration. If you ever run into unmanageable debts with multiple credit card lenders, expert counselors at Consumer Credit Card Relief will help you consolidate the debts to give you lower monthly payment amounts which are easier to manage.   

Third Myth: It’s enough to make minimum payments

This is one of the most common myths about credit card debts. Most credit card issuers require a minimum monthly payment as you gradually reduce your balance. A majority of people believe that making this minimum payment is often enough to maintain your score. However, it is advised that you pay off your balances in full each month whenever you can. Most new card holders often confuse the term “minimum payment” to be everything they owe each month. They don’t usually check their total current balance to know exactly how much they owe each month. When you get into a habit of making minimum payments every month, you will be accruing a bigger credit card debt and eventually pay more in interest.

For example, if you charge $500 on a card that has 18% interest and only make a minimum monthly payment of $25, you would take 2 years to complete paying off the balance if your interest remains constant. Eventually, you’ll pay around $100 in interest. Supposing you make additional charges on the card before you’ve finished paying the first debt and continue making minimum payments? As an expert credit card debt counselor at Consumer Credit Card Relief would say, you’ll be looking at an even longer payback timeframe and a much higher interest.

There are others who believe making minimum payments will suffice because having a balance on your credit card helps to build your credit history. After all, without a balance, you don’t have a credit history. Well, nothing can be further from the truth. The truth is that you build credit history whether you have a balance on your card or not. Carrying a balance on your card every month only exposes you to late fees, higher interest charges, and the possibility of damaging your score if you fail to pay off the accrued balances.

Fourth Myth: You improve your credit score by paying with cash every time

A majority of people prefer to pay with cash because they believe it is convenient and since they are not getting into debt, they credit score will improve significantly. In reality, paying with cash for everything leaves you with a mediocre credit score. There is only one way of building your credit score and that’s by making good use of credit accounts. Paying with cash, checks, debit cards, and other currencies does nothing to improve your credit score.

If you don’t make good use of available credit options, you’ll never have any credit score to talk about. This means you’ll eventually be charged higher interest when you purchase a car, home, or something that will require taking a loan. The higher interest could translate into thousands of dollars that you would have saved by using credit cards in small day to day expenses. Paying with cash for everything you purchase is not a sound financial move if you want to improve your credit score. Get a credit card and start building your credit history by charging small recurrent expenses on the card that you can easily pay off every month. At Consumer Credit Card Relief, everyone, including those with unmanageable, debts is advised to maintain a credit card as their debt problem is being resolved.

Fifth Myth: You lose money when you invest in a credit card debt relief service


It’s not true that you’ll end up losing more money when you invest in a trusted credit card debt relief service. After all, these companies exist to help you take control of your debt situation and even help you to lower your monthly payments. They’ll negotiate with your credit card lenders to give you better payment terms and save you money in the long run. With the help of a credit card debt relief service, you’ll finally have peace of mind when you get multiple creditors off your back and only have to concentrate on making a single payment every month.

For instance, Consumer Credit Card Relief has certified credit card counselors willing to help you overcome your debt problems. They’ll help you to consolidate all your credit card debts and teach you how to manage your personal finances. You don’t lose money when you invest in Consumer Credit Card Relief services. The company is trusted by thousands of people who’ve benefitted from its services. The credit card debt relief service will not only save you from bankruptcy but help you to live a debt-free life as well.  


To most people, credit card debt is a sensitive financial matter that is treated with utmost caution. This is why there are many unfounded myths and misconceptions about credit card debt among the general populace. Fortunately, there are many avenues available both online and offline that you can use to get real information about any credit card debt issue or concern you may be having. Don’t just believe every myth you come across but instead strive to develop smart financial habits such as paying off your loans early and avoid spending more than you can afford to pay. Good payment behavior and a healthy combination of credit types will help to improve credit card debt management and increase your score. If you are already struggling with credit card debts, click here to find out how Consumer Credit Card Relief can help you to pay off your debts in easy and affordable plans.