Page 36 - November 2021 Issue Hustle Mama Magazine
P. 36

 Credit Card Advice You Should Ignore
Anyone can find a ton of information on the internet about dealing with credit card debt. Often, some of this advice is conflicting, and it can be challenging to figure out what information you should and should not listen to.
The best way to decide if a piece of advice is trustworthy or not is to try and think about what the intent is and who stands to profit from those tips. For example, some content creators on financial sites might have a business model that will make them more money if you follow their advice. Just be careful not to follow any bad advice because that could lead you to even more credit problems.
Here are the main pieces of credit card advice that you should ignore.
Your Credit Score Increases When You Use More Credit
There is a commonly held mistaken notion that the more credit you use, the better your score will be because it indicates that you are both being accepted for credit and can keep up with payments. On the contrary, though, utilizing too much of your available credit can actually hurt your score.
The number of your credit cards and the limit you set for them will determine what kind of rating you will get. It is recommended to have a low utilization if at all possible.
Never Transfer Balances onto Different Cards
It is advised that you do not transfer your balance from an existing card to a new one. While balance transfers can appear to be useless under certain circumstances, they are also helpful when you need a break from payments.
Often balance transfer cards come with 0% interest for six to twelve months. You can actually pay off the balance sooner, and, as a result of that, you will end up paying less overall because there is no interest rate.
If you see the APR on your credit cards, it can be surprisingly high. However, some reputable sources point out that this does not affect people who are good at managing their money. The truth is, the APR makes a considerable difference to your finances.
Ignore the APR
Choosing a credit card with the lowest APR is important: that will make repayments more affordable, and you will not be paying as much back in interest.

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