Consolidated Credit Addresses Common Credit Myths During Financial Literacy Month | Noticias Newswire

FORT LAUDERDALE, FL, April 10, 2025 [Noticias Newswire] – As Individuals face challenges akin to growing rates of interest, inflation, and record-high bank card debt, Consolidated Credit, a number one nationwide nonprofit credit score counseling group, is utilizing Monetary Literacy Month this April to confront some of the vital limitations to monetary wellness: misinformation.

“Bank cards and credit score scores play a vital position in nearly each monetary choice, but many individuals maintain onto misconceptions that may negatively have an effect on their monetary well being,” mentioned Sandra Tobon, Director of Housing Counseling and Neighborhood Outreach at Consolidated Credit score.

Consolidated Credit score highlights that a number of the most dangerous monetary myths proceed to flow into, typically main people to keep away from utilizing credit score responsibly or overlook their current debt.

“Many individuals really feel embarrassed or confused relating to their credit score. We need to take away the stigma and substitute it with assist and training,” says April Lewis-Parks, Consolidated Credit score’s Director of Monetary Schooling.  “Good credit is possible — you simply want the proper instruments and knowledge.”

Prime Credit score Myths:

MYTH #1: A excessive credit score rating equals simply paying payments on time.

Reality: Whereas fee historical past is essential, it’s not the one issue. Credit score utilization ratio is necessary, too.

TIP: Goal to make use of lower than 30% of accessible credit score throughout all accounts. If the credit score restrict is $5,000, attempt to hold your stability beneath $1,500.

MYTH #2: Solely fear about credit score scores when making use of for a mortgage.

Reality: Credit scores can have an effect on job alternatives, condominium leases, insurance coverage premiums, and even utilities. Lenders use credit score rating ranges to evaluate danger stage and decide charges and phrases:

• 720+ Glorious: Could qualify for the perfect charges and rewards
• 660–719 Good: Usually permitted for credit score, however could have greater charges
• 580–659 Honest: Restricted entry to credit score; greater prices
• Under 580 Poor: Typically denied conventional credit score or topic to very excessive charges

MYTH #3: APR doesn’t matter should you plan to pay your stability off.

Reality: Whereas that’s true, greater than 60% of Individuals carry a stability, in keeping with Debt.com’s newest analysis. The typical credit card APR within the U.S. is at present over 20%, however many customers don’t even know what theirs is.

TIP: Something beneath 15% APR is usually thought of favorable, however even then, carrying a stability provides up shortly.

MYTH #4: Bank card rewards are at all times a win.

Reality: Rewards might be helpful, however solely when paying off the stability in full every month. In any other case, curiosity expenses typically cancel out any cashback or factors earned.

TIP: Rewards ought to be a bonus — not a purpose to spend extra. Concentrate on accountable utilization first, then optimize rewards.

MYTH #5: You’ll know when your debt is getting out of hand.

Reality: Many individuals don’t understand their debt is unmanageable till they’re overwhelmed. Warning indicators embrace:

• Solely making minimal funds
• Skipping different payments to pay bank cards
• Utilizing one card to pay one other
• Feeling nervousness or disgrace about bank card or mortgage balances

TIP: A wholesome debt-to-income (DTI) ratio is under 36%. If greater than a 3rd of your revenue goes towards debt funds, it’s time to reassess your price range or search assist.

Empowering Shoppers with Details, Not Concern

To rejoice Monetary Literacy Month, Consolidated Credit score is providing free sources, webinars, and one-on-one counseling classes to assist folks substitute myths with actionable methods. Sources embrace:

• Free downloadable guides and budgeting worksheets
• Bilingual webinars and workshops for households, college students, and first-time homebuyers
• Knowledgeable financial counselors obtainable to reply questions and develop customized plans

“Persons are doing their greatest in a fancy monetary world,” says Lewis-Parks. “This April, we need to give folks an opportunity to reset with actual, clear, and empowering monetary training.”

Go to www.ConsolidatedCredit.org to entry sources and study extra.

About Consolidated Credit score

Consolidated Credit is a nonprofit group that has helped over 10 million folks overcome debt and obtain monetary freedom. For greater than 30 years, its mission has been to supply monetary training and customized counseling that empowers people and households to construct stronger monetary futures.

Media Contact: Jill Randolph JRandolph@mediamgmtgroup.com