If you’re looking to improve your credit, you’re probably reading as many personal finance books as you can, taking workshops, consulting with financial professionals, and talking to friends and family. However, it is important to make sure you steer clear of bad money advice, especially when it comes to credit management. The worst advice is based on myths that continue to get passed on from consumer to consumer.
A Capital One study of consumers who were rebuilding or establishing credit found that a lot of confusion exists when it comes to credit cards. While roughly 53% of respondents said they were very confident when it comes to understanding credit, about 31% said that closing unused cards was good for their credit score and about 52% thought carrying a credit card balance from month to month was also beneficial.
Following erroneous money advice could put you on the wrong path and negatively impact your financial health for years to come. The Cheat Sheet reached out to financial experts to ask them about the worst credit card advice they ever received or heard. Here are 5 big points they want to warn you about.