Myths about your Credit Card that can get you into trouble
The credit card is the most popular means of credit in the world; if ever there’s an emergency, your credit card is there to help. But before getting a credit card, it’s important to find out about the best deals on the market. Non-banking financial institutions like Bajaj Finserv provide credit card options that come with a ton of benefits.
Due to their widespread popularity, users often have many misconceptions about credit cards in general. Below are some of the popular credit card myths debunked.
Myth #1: The CVV Number Is the Only Important Detail
This is a popular misconception that many entertain. If nobody knows your CVV number, then your card is not necessarily safe. Some websites don’t ask for your CVV number when you make an online transaction; all they need is the expiration date, card number, and name of the card holder. This essentially means that fraudsters could use other information about your credit card in order to rob you. It’s important to maintain the privacy of each one of your credit card details, and not just the CVV number.
You can, however, scratch off the CVV number at the back of your card for safer offline transactions, provided you remember it. Also ensure that you observe the process when your card is being swiped.
Myth #2: Carrying Balance on My Card Will Help My Credit Score
This is one of the thou-shalt-nots in the list of credit commandments. Carrying a debt balance on your credit card and paying the minimum due each month is not going to improve your credit score. This is one of the major credit card myths you should be careful about. In fact, this practice may completely ruin your credit score.
When you can’t afford to pay your bills in full, then you can choose to pay back the minimum amount. However, if you keep paying just the minimum due for a continued period of time, then you risk damaging your credit score. This is because your credit card issuer assumes that you’re struggling financially or that you’re simply irresponsible when you don’t make full payments on time.
Myth #3: My Signature on the Back of the Card is Not Critical
Contrary to popular notions, the signature on the back of your credit card is quite important; if there isn’t any signature, then the card may simply deemed invalid. The signature is present so that when you’re purchasing a product, the merchant can cross-check your signature on the card with that on the bill. Most merchants ignore this rule, and so do most consumers. The signature can help prevent a lot of confusion even if you lose your card; this is one of the credit card facts that you need to keep in mind.
Myth #4: I Need a Credit Card to Earn Rewards
If you’re getting a credit card solely for the rewards, think again; you get rewards only if you pay off your dues on time. Financial firms introduced the reward system when they realised that users could not pay their credit card debts on time. Lenders usually end up making more money off the reward system than customers. You can consider using an EMI card from Bajaj Finserv as it provides a better reward point system.
Myth #5: My Credit Card is Safe as it Cannot be Duplicated
Your credit card is made with a specialised magnetic strip that stores valuable information. When you swipe your card, data is extracted from the magnetic strip so that your payment can be verified. Now this information can be cloned in order to make a duplicate card, thereby putting your account at risk. In order to avert this threat, you can choose a credit card issuer like Bajaj Finserv, who provides an additional layer of security. Select from either the platinum card or the world credit card, depending upon your requirements.
By knowing these credit card myths, you can avoid making the common mistakes that card holders frequently make.