Do you ever find yourself struggling to get sound financial advice? Probably not. Financial help is everywhere these days. Whether it’s from your relatives, your colleagues, or the internet, the amount of knowledge you can gain about managing your finances can be overwhelming.

However, not every piece of information you receive is reliable – in fact, some of it could be untrue. And when it comes to credit cards, there are quite a few myths that exist around them. Here’s a handy guide towards separating these myths from the reality:

Myth: Owning multiple credit cards can harm your credit score

The fact is that the number of credit cards you own has no impact on your credit score. As long as you are paying your credit card bills on time, you have nothing to worry about. Also, you will seldom find a credit card that fulfils all your financial requirements. So, while nothing stops you from owning as many credit cards as you like, make sure you are prudent with your spending and repay all dues on time.

Myth: You shouldn’t accept a credit limit increase

A lower credit limit is not always a great idea, and an increase in credit limit does not mean an increase in spending. In fact, having a high credit limit will only help ensure that you maintain a low credit utilisation ratio, which will drastically improve your credit score. Not just that, a high credit limit will ensure that you have access to a good amount of liquid cash which can be helpful in times of need. Medical emergencies can hit anyone, at any time. Imagine if you were to be hospitalised- the entire burden of paying the hospital bills would be on your family. A credit card with a good limit can come extremely handy at such a time.

Myth: It is okay to spend more than your credit limit

Some lenders permit their customers to make one or two payments even when they’ve used up their credit limit. But making this a habit isn’t advisable. When you exceed your credit limit multiple times, it reflects poorly on your money management skills and hence has a negative impact on your credit score.

Myth: Making the monthly minimum payment is fine

The prospect may even seem tempting, but what many don’t realise is that by making just the minimum payment, you end up paying interest on the other installments.

Myth: Credit cards with an annual fee are always a bad idea

Credit cards that come with an annual fee are also loaded with features and benefits. As a result, you end up earning more than you pay as the fee – in the form of cashback, reward points, and vouchers. In some cases, the fee may be waived based on your annual spends.

Now that you’re aware of the most common credit card-related myths, be sure to dismiss any such claims you hear. For choosing a credit card for yourself, visit or download the Chqbook App today. Get personalised recommendations to help you pick the right credit card that is perfectly suited for your needs. Not just that, you enjoy a seamless application journey, you earn rewards too. So go on, opt for a credit card of your choice today and earn as you shop!