Vincenza Vicari-Bentley, AFC
USU Extension Empowering Financial Wellness Program Coordinator
Money Myths- how do they even start? Did you hear it from a friend who heard it from a friend? Maybe a family member or a co-worker? Wherever we get these myths, it seems that we often accept myths about personal finances as truth (especially when we hear the same thing over and over again). This can be especially true when it comes to personal finances because a lot of people don’t have a ton of knowledge about that topic and it is one of those topics that can be intimidating to a lot of people. Given the complexity of credit scores and how they are calculated, it’s easy to see why so many myths about them exist. I’m here to break down 3 common myths about credit scores.
Jerevie Canlas, Ph.D., CFLE,
Empowering Financial Wellness Program Coordinator
In all fairness, credit cards are very convenient and help individuals build credit - because there are things that are not easy to purchase in cash. However, it’s really tempting to overspend with a credit card. If not used cautiously, excessive credit card use can put you years behind in your financial goals. Imagine this: you are using credit cards to build credit so you can purchase your own home. When you miss a payment or are not able to pay your balance in full, you might not be able to build good credit, so you end up getting a less desirable interest rate on a mortgage loan. What’s worse, since you’re paying off debt, saving for a downpayment for that dream home might take longer. Just with this scenario, the biggest advantage of credit cards is credit building, and the biggest pitfall is overspending and debt - exactly the things that will ruin the credit you’re wanting to build.
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