Top 10 Credit Card Myths And Realities

Credit cards have become an unnecessary nuisance of our day to day life. They are essential at times in case of emergencies like medical exigencies. However, the allied liabilities and charges for the credit money available is quite stressful. The average person does not realise that using credit card is just as good as paying money out of the pocket at the time of use. This often creates a delusion of a higher financial capacity which can be critical.

There are however, times when the credit or debt becomes unmanageable thereby giving rise to desperate ideas. Thus, people listen to baseless guidance and end up getting into more of a mess than getting a resolution. Some of these realities or myths are:

  • The idea that CVV number that is the 3 digits from the back of the card are a layer of protection for you since nobody has any inkling about it is not true. The requirement to key in the CVV is not a universal mandate across websites. There are many websites outside India which do not have this as a necessity.


  • The scenario becomes further grim since the very same international websites do not have a necessity to accept requisitions with PIN numbers. This remains an added layer of security for online payment which was brought in by the RBI in India. Thus, if anyone gets a hold of your card details, and do not know the PIN, they can still run up quite a high bill which might affect you.


  • It is a somewhat vague idea which people have that closing a credit card means a lower credit score. However, it is true that temporarily the score does take a beating since if it is a card with a high limit; it means the overall credit limit capacity goes down thereby reducing the score.


  • It is absolutely untrue that if one closes or returns a credit card, it causes the debt burden to come down. This is so since the lender will not allow closure even if you close down the account unless all dues have been met in full.


  • The signature on the credit card does matter since the merchant is supposed to match the signature with that on the bill. Thus, if a signed card goes missing it is the duty of the merchant to verify the same if the card is signed.

Thus, one must be extremely careful and should also not feel that their credit cards cannot be duplicated. Be careful and watchful.

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