Can’t decide whether you should get a credit card for your daily purchases? If you want to make an informed decision, you must stop believing the myths associated with credit cards in Canada.

In this blog, we’ll be busting some of the most common credit card myths so you can feel more empowered when managing your finances. Read on to learn which credit card myths you should stop believing today.

Myth1: Credit Cards Can Increase Your Debt

The rising household debt is an alarming situation for Canadians. In such circumstances, most people want to minimize their debt to get their finances back on track. If you pay off your credit card balance each month, you won’t incur any additional debt and can even earn rewards points or cash back on purchases.

You can also use credit cards to build your credit score and manage your finances if you use them responsibly. If you use a low-interest-rate credit card, you may be able to save money on interest charges when compared to other forms of borrowing. Ultimately, the key is to make smart decisions with your spending and always pay your card balance.

Myth2: Credit Cards Can Decrease Your Credit Score

Using a credit card responsibly can increase your credit score over time. That’s because when you use a credit card, you’re building up your payment history and showing potential lenders that you’re responsible and able to pay back debts.

Having access to a line of credit through a credit card is an excellent way to ensure you don’t overdraw from your bank account or miss any payments due to a lack of funds. So, if you want to improve your credit score, don’t shy away from using a credit card—use it responsibly and watch as your score improves.

Myth3: Credit Cards Are Mostly Financial Scams

Yes, there might be some companies trying to scam you with fake credit cards, but this is why you must acquire credit cards only from reputable organizations like the Great Canadian Rebates.

The key is to research and find a card that works for you. Look for one with low-interest rates, no annual fees, and rewards that match your spending habits. Make sure to read the terms to understand how the card works and what fees you’ll have to pay.

Once you have a card that meets your requirements, you must use it sensibly. Never spend more than you can afford to pay off each month, and always complete payments on time. Doing this will ensure your credit score isn’t affected by late payments or high balances.

With the right card and responsible spending habits, you can use yours to build a positive credit score while earning rewards.

Myth4: Using Multiple Credit Cards Can Decrease Your Creditworthiness

It’s a common misconception that using multiple credit cards can decrease your creditworthiness. When you use numerous cards responsibly, it’s a sign to creditors that you’re financially responsible and have no problem managing different types of debt.

It can lead to a higher credit score and open more financial opportunities for you. If you don’t use your cards responsibly, having multiple cards could lead to lower scores due to high balances or missed payments. So, while having more than one credit card has its benefits, always remember using them wisely is crucial for maintaining good credit.

Myth5: Closing Old Credit Cards Is Beneficial

Closing an old credit card can harm your credit score by reducing your available credit and increasing your utilization ratio. It can lower your overall score and make it harder to get future loan approvals. You must remember that the length of your credit history is a factor in determining your credit score, so keeping an old card open allows you to increase this length and benefit from it in the long run.

Myth6: Credit Card Terms Are Non-Negotiable

Credit card companies provide plenty of flexible options when it comes to their terms, ranging from low-interest rates to rewards programs. We recommend thoroughly researching the best credit card deal before signing up for one. If you already have a credit card, you can reach out to your provider and see if they’re willing to make changes based on your requirements. Don’t be afraid to ask for what you need because most providers will do their best to accommodate your requests.

Myth7: Debit Cards Are Better Than Credit Cards

One of the most prevalent myths about credit cards is that debit cards are always a better option than credit cards. While it’s true that debit cards have their benefits, they don’t always offer the same level of convenience and financial flexibility as credit cards.

Debit cards are linked to your checking account and draw funds directly from the account when you purchase a product. It means you can only spend what you have in your account.

Credit cards are a valuable financial tool to build your credit score and earn rewards points with every purchase. Depending on the card, you can also take advantage of cashback bonuses, travel reward programs, and other features like better warranties. Credit card companies also offer fraud protection for their customers so you can shop with peace of mind knowing any unauthorized charges will be taken care of by the company.

Get Your Hands On Top-Notch Cash Back Credit Cards

Looking to get cash back credit cards in Canada? Great Canadian Rebates provides information on a wide range of major credit cards in Canada and gives generous cash back rebates upon approval of credit cards applied for through their website. From cash back credit cards for online shopping to travel credit cards, the platform offers various options to help you get excellent financial rewards. Visit the website today for more information.