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Top 10 Canadian Credit Card Myths Dispelled

The Top 10 Credit Card Myths DISPELLED! 35% payment history 15% credit history length 10% new credit 30% 10% number of types of credit accounts amounts owed Checking your FICO score hurts What's in a FICO 1 score, anyway? your credit. INCORRECT! What really hurts your credit is when you excessively apply for credit cards. Checking Closing accounts will raise your credit score. your own score won't have any effect. At least 1 in 10 Canadian consumers has ten credit cards in their wallets. FALSE. Credit reports grade you on your available credit and what you are using, so closing accounts will actually lower your score. Paying off debts instantly restores All you need to do to maintain a good credit C score is pay your cards off in full, on time. your credit. NOT EXACTLY... Your credit report is a history, not an instant snapshot of your credit. Paying off debts will improve your credit, but it won't erase the fact that you previously owed a large balance. Your credit score will rise as THAT IS GREAT, UNLES... You are charging amounts that are close to your credit limit. Even if you are paying off your balance each month, your score is calculated based on how much of your limit you are using. you develop a history of being close to debt free. 65% of Canadians pay their credit card off each month. "No-limit" credit cards have no spending limit for purchases. FALSE! All cards have limits based on your credit history and financial circumstances. According to Visa and MasterCard, a card is not valid 6. An ID is required when you pay O with a credit card. unless it is signed on the back. Pease See ID WRONG! Merchant's agreements with major credit card companies specifically forbid them from requiring ID. Your signature is supposed to be enough. Your new credit card account won't show | on your credit report until you activate it. My credit card company won't change my rate unless I mess up. NOT TRUE. Your account will show up as active on your credit reports shortly after the card is approved. NOT QUITE... Any rate is subject to change with 15 days notice. New regulation prevents rate increases on existing balances, unless you miss payments. 9. Debit cards have better fraud 10 You need protection than credit cards. INCORRECT. Credit cards provide more fraud protection, but they are almost twice as likely to incur fraudulent chages. to carry a balance to have good FALSE. Your statement balance is credit. the only thing reported, so carrying a balance will not improve your credit. If you are making minimum payments (2%) a $1,000 charge on an average credit card it will take 22 years to pay off and will cost over $2300 of interest due to compound interest. initial $1000 charge $2300 interest over 22 years SOURCES http://www.debthelpcanada.com/Creditcard_facts.html http://www.kiplinger.com/tools/credit or_debit/map.html http://www.cba.ca/en/media-room/50-backgrounders-on-banking-issues/123-credit-cards http://www.billshrink.com/blog/7293/myths-versus-facts-credit-card-usage-and-debt/ http://articles.moneycentral.msn.com/Banking/CreditCardSmarts/9BigCreditCardMyths.aspx CreditCardsCanada The Top 10 Credit Card Myths DISPELLED! 35% payment history 15% credit history length 10% new credit 30% 10% number of types of credit accounts amounts owed Checking your FICO score hurts What's in a FICO 1 score, anyway? your credit. INCORRECT! What really hurts your credit is when you excessively apply for credit cards. Checking Closing accounts will raise your credit score. your own score won't have any effect. At least 1 in 10 Canadian consumers has ten credit cards in their wallets. FALSE. Credit reports grade you on your available credit and what you are using, so closing accounts will actually lower your score. Paying off debts instantly restores All you need to do to maintain a good credit C score is pay your cards off in full, on time. your credit. NOT EXACTLY... Your credit report is a history, not an instant snapshot of your credit. Paying off debts will improve your credit, but it won't erase the fact that you previously owed a large balance. Your credit score will rise as THAT IS GREAT, UNLES... You are charging amounts that are close to your credit limit. Even if you are paying off your balance each month, your score is calculated based on how much of your limit you are using. you develop a history of being close to debt free. 65% of Canadians pay their credit card off each month. "No-limit" credit cards have no spending limit for purchases. FALSE! All cards have limits based on your credit history and financial circumstances. According to Visa and MasterCard, a card is not valid 6. An ID is required when you pay O with a credit card. unless it is signed on the back. Pease See ID WRONG! Merchant's agreements with major credit card companies specifically forbid them from requiring ID. Your signature is supposed to be enough. Your new credit card account won't show | on your credit report until you activate it. My credit card company won't change my rate unless I mess up. NOT TRUE. Your account will show up as active on your credit reports shortly after the card is approved. NOT QUITE... Any rate is subject to change with 15 days notice. New regulation prevents rate increases on existing balances, unless you miss payments. 9. Debit cards have better fraud 10 You need protection than credit cards. INCORRECT. Credit cards provide more fraud protection, but they are almost twice as likely to incur fraudulent chages. to carry a balance to have good FALSE. Your statement balance is credit. the only thing reported, so carrying a balance will not improve your credit. If you are making minimum payments (2%) a $1,000 charge on an average credit card it will take 22 years to pay off and will cost over $2300 of interest due to compound interest. initial $1000 charge $2300 interest over 22 years SOURCES http://www.debthelpcanada.com/Creditcard_facts.html http://www.kiplinger.com/tools/credit or_debit/map.html http://www.cba.ca/en/media-room/50-backgrounders-on-banking-issues/123-credit-cards http://www.billshrink.com/blog/7293/myths-versus-facts-credit-card-usage-and-debt/ http://articles.moneycentral.msn.com/Banking/CreditCardSmarts/9BigCreditCardMyths.aspx CreditCardsCanada The Top 10 Credit Card Myths DISPELLED! 35% payment history 15% credit history length 10% new credit 30% 10% number of types of credit accounts amounts owed Checking your FICO score hurts What's in a FICO 1 score, anyway? your credit. INCORRECT! What really hurts your credit is when you excessively apply for credit cards. Checking Closing accounts will raise your credit score. your own score won't have any effect. At least 1 in 10 Canadian consumers has ten credit cards in their wallets. FALSE. Credit reports grade you on your available credit and what you are using, so closing accounts will actually lower your score. Paying off debts instantly restores All you need to do to maintain a good credit C score is pay your cards off in full, on time. your credit. NOT EXACTLY... Your credit report is a history, not an instant snapshot of your credit. Paying off debts will improve your credit, but it won't erase the fact that you previously owed a large balance. Your credit score will rise as THAT IS GREAT, UNLES... You are charging amounts that are close to your credit limit. Even if you are paying off your balance each month, your score is calculated based on how much of your limit you are using. you develop a history of being close to debt free. 65% of Canadians pay their credit card off each month. "No-limit" credit cards have no spending limit for purchases. FALSE! All cards have limits based on your credit history and financial circumstances. According to Visa and MasterCard, a card is not valid 6. An ID is required when you pay O with a credit card. unless it is signed on the back. Pease See ID WRONG! Merchant's agreements with major credit card companies specifically forbid them from requiring ID. Your signature is supposed to be enough. Your new credit card account won't show | on your credit report until you activate it. My credit card company won't change my rate unless I mess up. NOT TRUE. Your account will show up as active on your credit reports shortly after the card is approved. NOT QUITE... Any rate is subject to change with 15 days notice. New regulation prevents rate increases on existing balances, unless you miss payments. 9. Debit cards have better fraud 10 You need protection than credit cards. INCORRECT. Credit cards provide more fraud protection, but they are almost twice as likely to incur fraudulent chages. to carry a balance to have good FALSE. Your statement balance is credit. the only thing reported, so carrying a balance will not improve your credit. If you are making minimum payments (2%) a $1,000 charge on an average credit card it will take 22 years to pay off and will cost over $2300 of interest due to compound interest. initial $1000 charge $2300 interest over 22 years SOURCES http://www.debthelpcanada.com/Creditcard_facts.html http://www.kiplinger.com/tools/credit or_debit/map.html http://www.cba.ca/en/media-room/50-backgrounders-on-banking-issues/123-credit-cards http://www.billshrink.com/blog/7293/myths-versus-facts-credit-card-usage-and-debt/ http://articles.moneycentral.msn.com/Banking/CreditCardSmarts/9BigCreditCardMyths.aspx CreditCardsCanada The Top 10 Credit Card Myths DISPELLED! 35% payment history 15% credit history length 10% new credit 30% 10% number of types of credit accounts amounts owed Checking your FICO score hurts What's in a FICO 1 score, anyway? your credit. INCORRECT! What really hurts your credit is when you excessively apply for credit cards. Checking Closing accounts will raise your credit score. your own score won't have any effect. At least 1 in 10 Canadian consumers has ten credit cards in their wallets. FALSE. Credit reports grade you on your available credit and what you are using, so closing accounts will actually lower your score. Paying off debts instantly restores All you need to do to maintain a good credit C score is pay your cards off in full, on time. your credit. NOT EXACTLY... Your credit report is a history, not an instant snapshot of your credit. Paying off debts will improve your credit, but it won't erase the fact that you previously owed a large balance. Your credit score will rise as THAT IS GREAT, UNLES... You are charging amounts that are close to your credit limit. Even if you are paying off your balance each month, your score is calculated based on how much of your limit you are using. you develop a history of being close to debt free. 65% of Canadians pay their credit card off each month. "No-limit" credit cards have no spending limit for purchases. FALSE! All cards have limits based on your credit history and financial circumstances. According to Visa and MasterCard, a card is not valid 6. An ID is required when you pay O with a credit card. unless it is signed on the back. Pease See ID WRONG! Merchant's agreements with major credit card companies specifically forbid them from requiring ID. Your signature is supposed to be enough. Your new credit card account won't show | on your credit report until you activate it. My credit card company won't change my rate unless I mess up. NOT TRUE. Your account will show up as active on your credit reports shortly after the card is approved. NOT QUITE... Any rate is subject to change with 15 days notice. New regulation prevents rate increases on existing balances, unless you miss payments. 9. Debit cards have better fraud 10 You need protection than credit cards. INCORRECT. Credit cards provide more fraud protection, but they are almost twice as likely to incur fraudulent chages. to carry a balance to have good FALSE. Your statement balance is credit. the only thing reported, so carrying a balance will not improve your credit. If you are making minimum payments (2%) a $1,000 charge on an average credit card it will take 22 years to pay off and will cost over $2300 of interest due to compound interest. initial $1000 charge $2300 interest over 22 years SOURCES http://www.debthelpcanada.com/Creditcard_facts.html http://www.kiplinger.com/tools/credit or_debit/map.html http://www.cba.ca/en/media-room/50-backgrounders-on-banking-issues/123-credit-cards http://www.billshrink.com/blog/7293/myths-versus-facts-credit-card-usage-and-debt/ http://articles.moneycentral.msn.com/Banking/CreditCardSmarts/9BigCreditCardMyths.aspx CreditCardsCanada The Top 10 Credit Card Myths DISPELLED! 35% payment history 15% credit history length 10% new credit 30% 10% number of types of credit accounts amounts owed Checking your FICO score hurts What's in a FICO 1 score, anyway? your credit. INCORRECT! What really hurts your credit is when you excessively apply for credit cards. Checking Closing accounts will raise your credit score. your own score won't have any effect. At least 1 in 10 Canadian consumers has ten credit cards in their wallets. FALSE. Credit reports grade you on your available credit and what you are using, so closing accounts will actually lower your score. Paying off debts instantly restores All you need to do to maintain a good credit C score is pay your cards off in full, on time. your credit. NOT EXACTLY... Your credit report is a history, not an instant snapshot of your credit. Paying off debts will improve your credit, but it won't erase the fact that you previously owed a large balance. Your credit score will rise as THAT IS GREAT, UNLES... You are charging amounts that are close to your credit limit. Even if you are paying off your balance each month, your score is calculated based on how much of your limit you are using. you develop a history of being close to debt free. 65% of Canadians pay their credit card off each month. "No-limit" credit cards have no spending limit for purchases. FALSE! All cards have limits based on your credit history and financial circumstances. According to Visa and MasterCard, a card is not valid 6. An ID is required when you pay O with a credit card. unless it is signed on the back. Pease See ID WRONG! Merchant's agreements with major credit card companies specifically forbid them from requiring ID. Your signature is supposed to be enough. Your new credit card account won't show | on your credit report until you activate it. My credit card company won't change my rate unless I mess up. NOT TRUE. Your account will show up as active on your credit reports shortly after the card is approved. NOT QUITE... Any rate is subject to change with 15 days notice. New regulation prevents rate increases on existing balances, unless you miss payments. 9. Debit cards have better fraud 10 You need protection than credit cards. INCORRECT. Credit cards provide more fraud protection, but they are almost twice as likely to incur fraudulent chages. to carry a balance to have good FALSE. Your statement balance is credit. the only thing reported, so carrying a balance will not improve your credit. If you are making minimum payments (2%) a $1,000 charge on an average credit card it will take 22 years to pay off and will cost over $2300 of interest due to compound interest. initial $1000 charge $2300 interest over 22 years SOURCES http://www.debthelpcanada.com/Creditcard_facts.html http://www.kiplinger.com/tools/credit or_debit/map.html http://www.cba.ca/en/media-room/50-backgrounders-on-banking-issues/123-credit-cards http://www.billshrink.com/blog/7293/myths-versus-facts-credit-card-usage-and-debt/ http://articles.moneycentral.msn.com/Banking/CreditCardSmarts/9BigCreditCardMyths.aspx CreditCardsCanada The Top 10 Credit Card Myths DISPELLED! 35% payment history 15% credit history length 10% new credit 30% 10% number of types of credit accounts amounts owed Checking your FICO score hurts What's in a FICO 1 score, anyway? your credit. INCORRECT! What really hurts your credit is when you excessively apply for credit cards. Checking Closing accounts will raise your credit score. your own score won't have any effect. At least 1 in 10 Canadian consumers has ten credit cards in their wallets. FALSE. Credit reports grade you on your available credit and what you are using, so closing accounts will actually lower your score. Paying off debts instantly restores All you need to do to maintain a good credit C score is pay your cards off in full, on time. your credit. NOT EXACTLY... Your credit report is a history, not an instant snapshot of your credit. Paying off debts will improve your credit, but it won't erase the fact that you previously owed a large balance. Your credit score will rise as THAT IS GREAT, UNLES... You are charging amounts that are close to your credit limit. Even if you are paying off your balance each month, your score is calculated based on how much of your limit you are using. you develop a history of being close to debt free. 65% of Canadians pay their credit card off each month. "No-limit" credit cards have no spending limit for purchases. FALSE! All cards have limits based on your credit history and financial circumstances. According to Visa and MasterCard, a card is not valid 6. An ID is required when you pay O with a credit card. unless it is signed on the back. Pease See ID WRONG! Merchant's agreements with major credit card companies specifically forbid them from requiring ID. Your signature is supposed to be enough. Your new credit card account won't show | on your credit report until you activate it. My credit card company won't change my rate unless I mess up. NOT TRUE. Your account will show up as active on your credit reports shortly after the card is approved. NOT QUITE... Any rate is subject to change with 15 days notice. New regulation prevents rate increases on existing balances, unless you miss payments. 9. Debit cards have better fraud 10 You need protection than credit cards. INCORRECT. Credit cards provide more fraud protection, but they are almost twice as likely to incur fraudulent chages. to carry a balance to have good FALSE. Your statement balance is credit. the only thing reported, so carrying a balance will not improve your credit. If you are making minimum payments (2%) a $1,000 charge on an average credit card it will take 22 years to pay off and will cost over $2300 of interest due to compound interest. initial $1000 charge $2300 interest over 22 years SOURCES http://www.debthelpcanada.com/Creditcard_facts.html http://www.kiplinger.com/tools/credit or_debit/map.html http://www.cba.ca/en/media-room/50-backgrounders-on-banking-issues/123-credit-cards http://www.billshrink.com/blog/7293/myths-versus-facts-credit-card-usage-and-debt/ http://articles.moneycentral.msn.com/Banking/CreditCardSmarts/9BigCreditCardMyths.aspx CreditCardsCanada

Top 10 Canadian Credit Card Myths Dispelled

shared by judithgold on Sep 22
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This inforgraphic explains what major credit myths are and what are the actual facts. It also gives statistics on credit card usage in Canada.

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Credit Cards Canada

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