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7 Myths about debit and credit

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It is one’s choice to believe in any kind of myth but it is important reading and understanding all the concept and weigh what to keep. Like any other thing, myths have been created for debit and credit cards, which have also affected the auto loan companies in quite a number of ways. The fact that a number of people are comfortable operating on credit, makes some of the myths unbelievable, but again, we cannot just rule out some of the common myths that have trended for a while now. For instance:

  1. Debit cards are better and safer than credit cards: with debit cards, one thing is for sure that in case of fraudulence, cash can easily get lost compared to credit cards since money gets out easily from your account with no pressure. Credit card users enjoy protection legally and monitoring of high technology hence a feeling of safety when dealing with credit. However, we cannot still rule out debit cards since it tends to imply a situation of responsible spending.
  2. Credit cards use results to overspending: looking at this, it solely depends on one’s character and nature of spending. A person that works on a budget will not complain of excess spending compared to one that does impulse buying. Buying on credit has no limitations of flow of cash, an important factor since it chips in for necessary things. It is also a way of building and improving one’s credit score hence mending credit history.
  3. Buying on credit creates debt: one thing is for sure that there is no debt that accrues with no credit involved. The solution to this though is being responsible in spending.
  4. Acquiring a credit card affects the credit score: having good credit score and history revolves around persistence in paying debt timely. However, some truth in this myth will only apply when default in payment and negligence comes in.
  5.  Transacting in cash beats all other ways: this is true and especially good for those who are poor in spending. On the other hand, you will realize that it is important to have a credit history and that can only happen when you carry out transactions on credit.
  6. Debts accrued in credit is no bother: this will definitely be a big deal when you acquire many credit cards with accrued balances that become a burden and affect your credit score. The weight is always felt when one intends to get an auto loan but the records seem to derail the process.
  7. Transactions on credit are not the credit history makers: this is not the case because at all cost, you will only need to build your credit history by acquiring debts and managing them accordingly.

Get an immediate approval for your auto loan by applying for one at Canadian Approval Center Canada

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