Hey Lykkers! Let’s have a real talk about credit cards.

You’ve probably heard a ton of advice—some from well-meaning friends, some from the internet, and some that sounds like financial folklore passed down through generations. But how much of it is actually true?

Today, we’re putting on our myth-busting hats and clearing the air. Grab your favorite beverage, and let’s dive into the 7 common credit card myths that just won’t die.

Myth #1: Carrying a Small Balance Boosts Your Credit Score

This is the granddaddy of credit myths. The truth: Paying your balance in full each month is the best move. Your credit report shows your statement balance, not whether you carry it over.

Carrying a balance only means you’ll pay interest, which does nothing for your score. As credit expert John Ulzheimer, formerly of FICO, states, "Carrying a large balance relative to your credit limit can have a negative impact on your credit. Less than 10% should be your target."

Myth #2: You Should Close Old Credit Cards You Don’t Use

It feels tidy, but it can backfire. Closing an old account shortens your overall credit history and reduces your total available credit, which can increase your credit utilization ratio (the amount you owe vs. your limit). Both can ding your score.

Myth #3: You Need to Carry a Balance to Have a Credit Utilization Ratio

Nope! Your utilization is simply the percentage of your credit limit you’ve used when your statement closes. You can use 30% of your limit, pay it off in full by the due date, and never pay a cent in interest, while still reporting that 30% utilization. For the best scores, aim to report a utilization below 30%, and ideally below 10%.

Myth #4: Checking Your Own Credit Report Hurts Your Score

Checking your own credit report is a soft inquiry and has zero impact on your credit score. Please, check it regularly! It’s your right to monitor for errors or fraud.

Myth #5: More Cards Always Hurt Your Score

Not necessarily. When applied for responsibly, more cards can help by increasing your total credit limit (lowering your utilization) and adding to your mix of credit. The damage comes from applying for too many at once (multiple hard inquiries) or using them to rack up unsustainable debt.

Myth #6: Debit Cards Are Safer Than Credit Cards for Fraud

This myth can be costly. With credit cards, you’re spending the bank’s money while a fraud dispute is investigated. Federal law (the Fair Credit Billing Act) limits your liability to $50. With a debit card, it’s your actual cash that’s missing from your bank account, and recovering it can be a lengthy, stressful process.

Credit cards offer superior fraud protection layers.

Myth #7: A High Income Guarantees a High Credit Limit

Your income is a factor, but it’s not the only one. Issuers look at your creditworthiness—your income-to-debt ratio, payment history, and credit score are far more critical. Someone with a high income but maxed-out cards and late payments may get a lower limit than someone with a moderate income and impeccable credit habits.

Your New Credit Card Clarity

Navigating credit doesn’t have to be shrouded in mystery. The foundation is simple: Use your card for planned purchases, pay the statement balance in full and on time, keep your utilization low, and monitor your reports.

Armed with the facts, you can now use your credit card as the powerful financial tool it was meant to be—not a source of fear or folklore.

Go forth and build that score wisely, Lykkers! Your financial future will thank you.