Unless and until you experience something or some product first hand, you are likely to believe the assumptions or the myths prevailing about it. Same goes for credit cards, there are certain myths that we would like to bust today. Check them below.

Myth 1: Don’t use your credit card, it will impact your CIBIL score

On the contrary to what people believe, using a credit card can boost your CIBIL score faster than any other method. You can use three to four credit cards (secured and unsecured), use them wisely, and pay the bills in a prompt manner. If you follow the suggested tips, your credit score will increase by a considerable percentage in a very short time.

Myth 2: Don’t keep your old credit cards with yourself

Throwing or closing your old credit cards is never a good idea. Doing the opposite might add to your loan eligibility. A higher number of open credit accounts results in longer history of credits. Having said that, you have to manage them well.

Myth 3: Don’t use more than one credit card.

Some people believe that owning multiple credit cards can affect their debt-burden ratio and highlight their credit hunger behaviour. This might be valid in some cases wherein people own more than 5 credit cards, but having 2-3 cards won’t be any harm. In fact, CIBIL experts suggest owning at least 3 credit cards at a time to improve their score.

Myth 4: It is good to have a certain percentage of your dues outstanding every month

This is the most absurd myth about credit cards. The last thing you would like to do with your credit card dues is not paying them on time and in full. Maintaining a portion of the monthly bill as outstanding only attracts a high rate of interest on the pending amount.

Considering the innumerable benefits associated with credit cards, you are missing out an opportunity to improve your future loan eligibility. Mend your mistakes now and get a Bajaj Finserv Card for yourself.

Read More about: What is Credit Card