Conventional wisdom is often a good thing, or at least harmless. For instance, even if chicken soup doesn’t help your cold — and research shows it probably does help — it won’t hurt you. Plus, you’ll help keep someone employed in the soup industry.
But there are plenty of times when conventional wisdom isn’t just wrong — it can cost you money. So the next time you’re about to make a big financial decision, keep in mind that rarely is anything black and white when it comes to the green stuff. Here are five money “rules” that are largely wrong.
Carrying a credit card balance will help your credit score. Not at all. If you are carrying a balance you can’t pay off, it will help to keep the balance as low as possible because credit bureaus don’t like to see a high debt-to-income ratio. In other words, they want to see that you aren’t maxed out to the limit every month. So intentionally carrying a balance on your card won’t put your credit in better standing or save you money; paying interest only benefits the credit card companies.
Having a zero balance every month on your credit card is fine, especially if you’re making regular or occasional purchases and pa[...] Read More...