Credit Card Myths You Need to Stop Falling For

Let’s be real—credit cards get a bad rap. Some people swear they’re a one-way ticket to debt, while others treat them like free money. The truth? Most of what you’ve heard about credit cards is either outdated, oversimplified, or just plain wrong.

At Wealthy Swipe, we’re cutting through the noise. Whether you’re in the UK, US, or Canada, these myths could be costing you money, travel perks, or even a better credit score. Time to set the record straight.

Myth #1: “Carrying a Balance Boosts Your Credit Score”

Reality Check: Nope. This is like saying paying extra for a gym membership you never use will make you fitter.

Credit bureaus care about two things when it comes to your balance:

• Whether you pay on time (late payments hurt you)

• How much of your limit you’re using (keep it under 30%)

Paying interest does nothing for your score. In fact, carrying a balance just means you’re throwing money away.

Pro Tip: Set up autopay for the full balance every month. Your credit score (and wallet) will thank you.

🔗 For more on how credit utilization works, Experian breaks it down here.

Myth #2: “Credit Cards Are a Fast Track to Debt”

Reality Check: So are cars if you drive them off a cliff.

Yes, reckless spending leads to debt—but that’s not the card’s fault. Used right, credit cards:

• Offer better fraud protection than debit cards

• Earn you cashback, points, or travel perks

• Help you build credit (crucial for mortgages, loans, even rentals)

The key? Spend like you’re using cash. If you wouldn’t swipe your debit card for it, don’t put it on credit.

Myth #3: “Closing Old Cards Helps Your Credit”

Reality Check: Actually, it might do the opposite.

That old student card you never use? Closing it could:

• Shrink your available credit, spiking your utilization ratio

• Shorten your credit history, making you look less reliable

Unless the card has a crazy annual fee, keep it open. Stick a small recurring charge on it (like Netflix) and set up autopay.

🔗 NerdWallet explains why closing cards can backfire here.

Myth #4: “You Need a Huge Salary for a Premium Card”

Reality Check: Banks care more about how you handle credit than your paycheck.

Plenty of people with modest incomes qualify for travel cards or high-reward cards because they:

• Have a credit score above 700

• Keep low balances

• Don’t apply for 10 cards at once

Example: The Chase Sapphire Preferred has a $95 annual fee but approves many mid-income applicants—and its sign-up bonus can cover years of fees if used right.

Myth #5: “Debit Cards Are Safer Than Credit”

Reality Check: Ever had your debit card hacked? It’s a nightmare.

Why credit cards win on safety:

• $0 fraud liability (you’re not on the hook for scams)

• Chargebacks (dispute charges easily)

• Your bank account stays untouched

With debit cards, thieves can drain your actual money—and getting it back takes weeks.

🔗 The FTC spells out the differences in this guide.

Myth #6: “Applying for Cards Wrecks Your Credit”

Reality Check: A single application might ding your score 5-10 points—for about 6 months.

Big deal? Not if you’re strategic:

• Space out applications (3-6 months apart)

• Avoid applying before a mortgage/loan

• Use pre-approval tools to check odds first

Fun fact: People who churn cards for bonuses often have excellent scores because they manage credit well.

Myth #7: “Paying the Minimum Is Fine”

Reality Check: Sure, if you enjoy lighting money on fire.

Here’s the math:

• $5,000 balance at 20% APR

• Minimum payment: $125/month

• Time to pay off: 6+ years

• Interest paid: ~$3,500

Paying just the minimum is how people stay in debt forever. Always pay in full—or at least double the minimum.

Myth #8: “All Credit Cards Are Basically the Same”

Reality Check: Would you say all shoes are the same? (Try running a marathon in flip-flops.)

Cards differ wildly in:

• Rewards (4% back on dining vs. 1% on everything)

• Fees ($0vs.$695 annual fees)

• Perks (free airport lounges, travel insurance)

Example: If you dine out often, the U.S. Bank Altitude® Go (4% back on food) beats a generic 1%-back card.

🔗 Compare cards tailored to your spending at Credit Karma.

The Bottom Line

Credit cards aren’t evil—misinformation is. Ditch these myths, and you can:

• Build credit without paying interest

• Earn hundreds in rewards yearly

• Avoid common debt traps

At Wealthy Swipe, we’re about working the system, not fearing it. Got a credit card “rule” you’ve heard but aren’t sure about? Drop it in the comments—let’s debunk it together!