Common myths and facts about credit cards

Summary: A credit card is a great way to manage your finances in a cash crisis. Before you start using one, let's bust some credit card myths and reveal some important facts about them.

03 Oct 2025 by Team FinFIRST

Apply Now

Credit cards make shopping a breeze by offering easy lines of credit. They are an ideal way to maintain one's financial health, but only if used wisely. If you do not keep a close watch on your credit card usage, it can hamper your finances significantly.

Here are certain credit card myths and facts to be aware of so that you can learn to use your card responsibly.

I need a credit card only to build credit

Many people opt for a credit card for this very same purpose, i.e., to build a good credit score. However, most people miss out on the fact that a credit score is derived from several parameters such as your payment history, borrowing profile, credit utilization ratio etc. Simply put, you can opt for a credit card to meet other needs, such as emergency or shopping.

There are various credit card benefits and wishing to add a credit card to your wallet to build credit is only one of several factors to build a good credit score where the user needs to be disciplined about on-time repayment and spending a portion of the credit limit assigned etc.

6 ways to budget with your Credit Card when your cost of living is too high

How long should you keep your inactive Credit Card open

I need a credit card only to shop

If you think you need a credit card to fulfil only your shopping requirements, you may be in for a surprise! While some credit cards do offer amazing shopping deals such as cashbacks, reward points, etc., a credit card has much more utility than simply being a shopping partner. For example, you can travel anywhere with a credit card with little to no cash since it is the most accepted form of payment. You can also get insurance coverage against accidents through your credit card. Therefore, shopping is just one of the reasons to own a credit card and not the only one.

I need a credit card only for emergency

An emergency may arise at any given time, especially a medical emergency that may require you to make immediate payments. Credit cards come in handy at such moments, as you can instantly pay without having cash on hand. This is one of the major credit card benefits. But it is also the most common credit card myth to consider having one just to meet your emergency requirements.

A lot of the time, you may never even have to face an emergency for a large part of your life. Is your credit card simply going to sit inside your wallet and feel the dust? No! Get that credit card out and understand how to utilize it to your benefit. For example, the excellent reward point programs run by credit card issuers can be redeemed against future purchases and save you a lot of money. IDFC FIRST Bank Credit Cards offer never-expiring reward points that are easily redeemable.

To sum it up

Using a credit card responsibly is one of the best ways to manage it. Always ensure that you pay your credit card dues on time. Not doing so could severely impact your credit score.

IDFC FIRST Bank offers various credit cards for all your needs. With zero annual joining fees, a low rate of interest, and a great reward points plan, IDFC FIRST Bank takes care of all your credit needs!

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirst.bank.in for latest updates.