by Trisha Echols
Majority of consumers have their own credit cards. Students, housewives, merchants, executives, and practically every sector and industry in the society possess personal credit cards. It’s the craze today and the numbers are rising. And most business accept credit cards. It’s the most convenientP way to transact business. However, a good number of people doesn’t like credit cards, nor would they accept credit card transactions. These concerns stem from the many fallacies that continue to spread like wildfire. These ugly rumors and half-truths cause strongn resistance against the use of credit cards.
It’s high time we examine these credit card fallacies and set the record straight.
-
CARD HOLDER ARE LIABLE FOR STOLEN CARD’S UNAUTHORIZED TRANSACTIONS
Suppose you somebody stole your credit card. Then that somebody used your card to make several costly purchases. As the owner of the card, you are liable for those transactions and have to pay for those purchases.
The truth: NO. Some card companies only charge a $50 to the owner of the card for any purchases done through a stolen credit card regardless of the amount. Even then, card-issuing companies will waive this amount if you report the loss promptly.
-
YOU CAN GET A CREDIT CARD ONLY IF YOU HAVE A GOOD CREDIT HISTORY
This implies that people excellent credit rating can get a credit card while those who fall short can not get one.
The real score: NOT TRUE. Anyone of legal age can get a credit card regardless of their credit rating. The only slight difference is that people having good credit rating enjoy lower interest in their credit cards compared to those with poor credit history. The fact remains that anyone can apply and get a credit card that suit his/her financial condition.
-
YOU CAN ONLY GET ONE CREDIT CARD IN YOUR LIFETIME
Let’s have a clear understanding of this fallacy. It states that if you already have a Visa, you can no longer apply or get additional credit cards. You are limited to only card in your entire lifetime.
The truth. NO. This is simply not true. You can get unlimited number of any type of credit cards as long as you can maintain good payment scheme for all of them. You can apply for, get and accept credit cards that suit your fancy. Just be sure that you exercise good financial responsibility.
-
SHREDDING YOUR CREDIT CARD WILL DELETE YOUR DELINQUENT RECORD HISTORY
For example, you are past behind in your credit card payments. Dumping your credit card into a shredder will immediately delete your delinquent record. You can then make a fresh start.
The truth: Absolutely false. Shredding, burning, or chopping your credit cards will never delete whatever credit payment history you incurred. Your credit history with credit card will remain on records regardless of whether you shred, burn, or chop your card.
-
A HIGH CREDIT LIMIT SPEAKS ILL OF YOUR REPUTATION
A card holder who has been granted a high credit limit only shows her wanton and obsessive shopping personality. It speaks ill of her reputation.
The truth: This is a complete absurdity. If you are granted a high credit limit, it shows that the card holder can be trusted. It shows responsibility; you can pay and likewise accept credit card payments. Having a high credit limit is also an indication that your finances are in order.
(Trisha Echols currently is a long-time financial consultant with established consultancy offices in Amsterdam, Halifax, Malaysia and other key cities. Her clients belong to the top 500 companies in England and in the United States. Miss Echols serves as business consultant for several credit card processing companies, including www.acceptcardsnow.biz. She does lectures on strategic business practices and also writes for various magazines on business matters.)
