Awhile back we received an email from a reader who wanted to share a video created by Credit Card Canada about credit card myths with our audience. The information provided in the video holds true for both the United States and Canada. We wanted to thank Kristy for sharing this with us as we always stress the importance of understanding and utilizing your credit score to your full-advantage! Previously we discussed 6 reasons why your credit score matters and what makes up your credit score. The video helps bring it all together and does an excellent job explaining the following 7 myths:
1) Checking your FICO score hurts your credit
2) Closing accounts will raise your credit score
3) Paying off debts instantly restores your credit
4) All you need to do to maintain a good credit score is pay your cards off in full, on time.
5) “No limit” credit cards have no spending limit for purchases.
6) An ID is required when you pay with a credit card.
7) Your credit card account won’t show on your credit report until you activate it.
Check out the video to see these myths dispelled:
Did this video help answer your questions about credit cards? If you learned something new from the video, please share it with us.