There are some very commonly held credit card beliefs that hurt your credit score. Credit cards are always associated with debt burdens and low credit scores. However, there is no such reality behind it. It all depends upon some good credit and financial habits that can help you avoid hurting your credit score. Here are some of the commonly held habits about credit cards and CIBIL scores that are commonly believed.

The one about not accepting a credit card limit increase

If people are telling you about not accepting your credit card limit increase, it is going to be wrong if you accept it. If you believe that the fact that credit limit increases are bad, this is a wrong credit card belief and you need to stop feeling that. When your loan provider offers you a high credit limit, it is given to you to attract you so that you can use your credit card more. But if you consider it, it actually works in your favour. A higher credit limit means that you can stick to the 30% credit utilisation ratio with more credit at your disposal. And this is good for your credit score too. For business loan interest rate visit : business loan interest rate.

The one about sticking to just one credit card

This is completely based on your choice and preference. If you are happy and completely fine with the fact that you have only one credit card, you can always have it that way. However, when you have more than one credit card, it can actually help increase your credit score. Provided you do not end up overutilizing the credit limit available on your credit cards, Are you thinking of how? Well, when you have multiple credit cards, your overall credit limit availability increases. In this turn, it helps you keep your credit utilisation ratio below the 30% range.

The one about not paying your past-due balance in full

When you use credit cards, it is important to understand the rules for outstanding and overdue amounts. Carrying a balance outstanding on your credit card by just paying the minimum payment every month may seem like a good idea, but it is not. When you keep paying the minimum balance every month by keeping an outstanding balance, it not only damages your credit score but becomes very expensive for you. Many people don’t know, or rather ignore, the fact that not paying their credit card in full payment will actually hurt their credit score. Must Read : What Is a CIBIL Score for Credit Cards and How Can It Be Improved?

The one about not getting a credit card

Do not become stressed regarding getting a credit card; your debit card is more important. Debit cards should be more than enough to handle your finances in the right way. If you were thinking this, it is not right. Owning a credit card does not mean you will end up with a high bill amount. There are people that spend useless and unnecessary money. However, if you keep control of your spending habits, credit card financing is an option for emergencies and crises to go cashless.

Finishing up

Your CIBIL score is not affected when you pay your credit card bills on a serious note. It is important to go through the CIBIL score check online to know your score.