Some people are afraid of credit cards because of potential debt, but credit cards can be beneficial when used responsibly. Some also come with perks!  Many myths about credit cards scare consumers into making the wrong decisions:


Myth No. 1: Using your debit card will boost your credit score!

Many people think debit cards boost credit scores because the card has Visa or MasterCard on it. This does not mean your debit card provides the same benefit credit card. In fact, owning and using a debit card has no effect on your credit score. “Credit cards are always bad” is a common misconception. While credit cards can become a problem if not managed responsibly, a credit card is one of the easiest ways to establish and build credit. It’s important to pay bills on time and keep balances low to avoid negative effects on your credit score.  

Share secured credit cards can be a great option for first-time credit card users. Secured credit cards provide a great way to improve your credit. Since a secure credit card is backed by cash on deposit, you can feel better using your credit card responsibly and paying balances on time. 


Myth No. 2: Keeping a balance on your credit card is bad!

Many credit experts suggest keeping a small balance on your card rather than paying it off because it shows you actively use it. When lenders look at your credit report, they can see how you manage debt and if bills are paid on time.


Myth No. 3: The more credit cards you have, the better!

Having a lot of credit cards is not always beneficial. A percentage of your credit score is figured by the type of credit you have. A good rule of thumb is to have a variety of loans. A good mix includes a credit card, mortgage, or fixed loan. Having all credit cards does not give lenders confidence in your credit history.


Myths do exist about credit cards, but they are not all true.  Credit cards can be beneficial for improving credit scores when used responsibly.  Some even earn rewards and offer competitive promotional rates.  Knoxville TVA Employees Credit Union offers the most widely accepted card. The Visa Platinum credit card gives you the purchasing power and attractive rate you expect and deserve! With benefits like a fixed annual rate, no annual fee, rewards points and more, why not carry it in your wallet?