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Myth 1: Only those having great credit scores are eligible for a credit card.
In one way, this is true. Lenders and banking agencies often prefer high credit score customers while providing credit. However, there are several companies that provide credit cards to even bad credit customers. Once approved, it becomes the responsibility of the customer to use the credit card in a more sensible and judicious manner. In case of bad credit customers, interest rates on credit cards will be slightly higher than normal. One way of improving credit is to go for either a secured credit card or a prepaid debit card.
Myth 2: Visa credit cards are the only ones that are widely accepted.
Visa and MasterCard are the two major credit issuing companies that are accepted globally. Both these cards have equal acceptance. Apart from these, there are other credit issuing companies like American Express, whose credit cards are accepted in the US, Europe and Asia.
Myth 3: In case of theft, the cardholder has to pay the entire amount spent by the thief using the credit card.
This is an absolute myth. In most cases, credit card companies follow a zero liability principle where the cardholder is not held responsible for any unauthorized payments or purchases made using the credit card, if the theft is reported immediately. In situations where theft was not reported immediately, credit card companies charge the customer for the first $50 spent using the credit card.
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