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2 mins Read | 3 Years Ago

5 Credit Card Myths That You Should Not Believe

Common Myths About Credit Cards Busted


Back in the day, payments were mostly made in cash. Then, other offline modes grew popular. And many years later, with the advent of the Debit Card, it became possible for people to pay for purchases digitally. But the real transformation took place when we turned to credit cards. These little plastic products have single-handedly made the whole buy-now-pay-later culture possible.

As per records pertaining to the year 2019, around <52> million Indians owned Credit Cards. That number has only been on the rise, and with the pandemic making digital payments the need of the hour, the spotlight on Credit Cards has grown stronger. Interestingly, there are many misconceptions about this nifty little financial product.

So, let’s bust some myths surrounding Credit Cards:

Myth #1: Interest Is Charged Right From The Day Of Purchase

This is a popular myth believed by most. However, this is not true. All Credit Cards, including ICICI Bank Credit Cards, come with an ‘interest-free grace period’ during which interest is not charged on your purchases. The time period between the end of your Credit Card billing cycle and the credit card payment due date is known as the ‘interest-free’ grace period.

Therefore, if you pay your Credit Card bills on or before the due date, no interest will be charged on your purchases. Interest starts to accrue only after the due date. However, this applies only to purchases made on your Credit Card and not towards cash withdrawals. In the event where you use your Credit Card to withdraw cash, interest starts to accrue immediately and continues till the date of the payment.

Myth #2: Credit Cards Can Make You Spend Impulsively

This is another myth doing the rounds ever since Credit Cards came into existence. While Credit Cards like the ICICI Bank Credit Card do make it extremely easy and convenient to purchase goods and services, they don’t make you a spendthrift. Spending impulsively only serves to signify a lack of financial discipline and cannot be attributed solely to Credit Cards.

For instance, a financially disciplined individual with responsible spending habits is very unlikely to go on a spending spree. Nevertheless, if you still feel that Credit Cards may make you spend impulsively, you could always make use of budgeting to inculcate responsible spending habits.

Myth #3: It’s Enough (and Even Ideal) To Have Just One Credit Card

Credit Card issuers generally tend to collaborate with different brands, service providers, and retailers. This allows them to offer their customers exclusive deals, discounts, promotions and specialised offers. A single Credit Card may not be able to offer you the collaborated benefits from multiple brands and service providers.

By just having one Credit Card in your kitty, you might actually be missing out on several attractive discounts and offers. With multiple credit cards from different issuers, you actually increase your chances of enjoying access to a wide-range of deals and promotions from various brands and retail outlets.

Myth #4: It is Not a Good Idea to Enhance Your Credit Limit

One of the primary reasons for the propagation of this myth is that an enhanced credit limit would only serve to increase the amount of spending by the card holder. Again, this is not true as it boils down to the individual’s own level of financial discipline.

If you’re reasonable when it comes to Credit Card utilisation, there’s absolutely no need to fear a credit limit enhancement. On the other hand, an enhanced credit limit would only serve to help you in times of dire need and other emergencies by giving you the freedom to mobilise liquid funds instantly.

Myth #5: Free Credit Cards Are The Real Deal

While Credit Cards with no annual fees are still a great option, they may not always carry benefits such as reward points, frequent flyer miles and airport lounge access. These exclusive benefits are generally offered only by Credit Cards that charge an annual fee.

And to top it all, Credit Cards that charge an annual fee usually tend to waive it off once you exceed a certain specified spending limit for the year. This effectively makes them free. With so many benefits on offer, it makes little sense to only stick to free Credit Cards and overlook the others.


So, what we understand from this is that when used prudently, Credit Cards can help you achieve financial freedom. Like any other financial product, they need to be used with proper planning. That way, you can optimally tap into the benefits they offer. Check out the ICICI Bank credit card eligibility criteria and apply for one now.


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