Don’t Fear the Plastic 💳
If the thought of using a credit card makes you uneasy, you’re not alone.
For decades, people have shared spooky stories about credit cards — tales of endless debt, ruined credit, and financial disaster.
But the truth? It’s not the card that’s dangerous — it’s the credit card myths that surround it.
Let’s bust a few of the most haunting credit card myths and learn how to use credit wisely instead of letting fear drive your financial decisions.
Myth #1: “Credit Cards Are Always Bad”
This is one of the most common and misleading credit card myths.
Credit cards themselves aren’t bad — they’re simply tools. Like any tool, they can help or harm depending on how you use them.
When you pay your balance in full each month and use credit wisely, credit cards can actually work for you:
✅ They build your credit history.
✅ They protect you from fraud.
✅ They often offer rewards or cash back for everyday spending.
💬 The card isn’t the villain — mismanagement is.
Myth #2: “Carrying a Balance Helps My Credit Score”
This myth is downright frightening — and expensive.
Carrying a balance doesn’t help your score. It only increases credit card debt and adds to your stress.
Your credit score improves when you use less than 30% of your available credit and pay off your balance in full each month.
That’s how you use credit wisely and show lenders you’re in control.
💡 Pro Tip: Want to see how utilization actually affects your score? Check out this NerdWallet guide to credit scores for a simple breakdown of what really matters.
Myth #3: “Having Multiple Cards Hurts Your Credit”
Here’s another persistent credit card myth.
Having several cards isn’t automatically harmful — applying for too many too quickly can cause a short-term dip, but over time, having multiple cards can actually help your score.
When managed responsibly, more available credit means lower utilization — which helps your credit profile.
The secret? Keep spending under control and pay in full every month.
Myth #4: “I Should Close Old Accounts to Improve My Score”
This is one of the credit card myths that sounds logical but backfires.
Closing old accounts can actually lower your credit score by shortening your credit history and reducing your available credit limit.
Unless a card has a high annual fee you don’t want to pay, keep it open and use it occasionally.
That history of responsible use strengthens your score and helps you use credit wisely.
Myth #5: “Credit Cards Always Lead to Debt”
This final myth is what keeps many people from building credit at all.
Yes, credit card debt can be scary — but it’s completely avoidable.
The truth is, credit card myths like this one cause more fear than financial harm.
When you track your spending, automate payments, and only charge what you can pay off, credit cards become your financial ally — not your downfall.
How to Keep Credit from Becoming Creepy
If you’ve fallen for these credit card myths, it’s time to bring your money out of the dark.
Here’s how to keep credit under control:
1️⃣ Pay your balance in full each month.
2️⃣ Keep spending below 30% of your limit.
3️⃣ Automate payments so nothing slips through the cracks.
4️⃣ Review your statements monthly to catch surprises early.
When you use credit wisely, it helps you build confidence, flexibility, and long-term financial clarity.
Next Steps
Don’t let credit card myths haunt your financial progress this Halloween.
The power isn’t in the plastic — it’s in your plan.
Learn how to build better habits in Budgeting 101, where we cover budgeting, credit, and long-term financial clarity.
Or start small with the Mojo Money Guide to find your weekly spending number and finally feel in control of your cash flow.
And if you’d love community support while you face those financial fears, come join From Chaos to Clarity: The Money Reset Group — we’re busting spooky money myths all month long!
