Money Myths: 10 Ways We Fool Ourselves About Managing Credit

Money Myths: 10 Ways We Fool Ourselves About Managing Credit
Steve Buissinne/Pixabay
Carrie Schwab-Pomerantz
Updated:
Dear Readers: April Fools’ Day can make for a good joke, but there are certain myths about money that, if not dispelled quickly, are no laughing matter. Misconceptions about credit and debt are right at the top of the list. Here are 10 common beliefs about credit that can lead to financial trouble. Don’t fall for them!

Myth No. 1: A Credit Score Is Only Important if You Need to Borrow Money.

If only it were that simple. Of course, your credit score impacts your ability to borrow, but nowadays, it can affect many other areas of your life including:
Interest rates: Whether you’re looking to finance a home, a car or a washer and dryer, the better your credit score, the lower the interest rate you may be offered.
Carrie Schwab-Pomerantz
Carrie Schwab-Pomerantz
Author
Carrie Schwab-Pomerantz, a certified financial planner, is president of the Charles Schwab Foundation and author of "The Charles Schwab Guide to Finances After Fifty."
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