Credit cards can be a bit of a hot topic (and for good reason). There’s over $1.2 trillion in credit card debt in the U.S., y’all. Needless to say, there are plenty of reasons to be cautious.
But mixed into reality are some frequent credit card myths that keep people from maximizing their financial tools… and accessing some free travel.
Let’s look at some of those myths and determine the truth about five of the most common ones.
Myth 1: Credit Cards Are Dangerous
Credit cards can be risky if misused… just like a car is dangerous if you don’t know how to drive. 🫠 But when used responsibly, they’re one of the most powerful financial tools in the game.
There are two golden rules:
Only spend what’s already in your bank account.
Pay the balance in full every month.
Setting up automatic payments means you’ll never pay a penny in interest or late fees (that’s what I do!). No matter how many points you earn, nothing is worth crazy interest rates. When used well, cards can give you some pretty sweet rewards and protections (while keeping you debt-free).
Myth 2: Using Credit Cards Hurts Your Credit Score
Lots of people assume that carrying multiple credit cards means you’re financially irresponsible. But in reality, responsible credit card use is one of the easiest ways to build excellent credit.
On-time payments, low credit utilization, and a mix of accounts can actually raise scores. Even if you hold dozens of cards, you can still maintain a score in the high 700s or more if you keep your balances in check.
The idea that cards make you overspend also doesn’t hold up if you stick to your budget. Whether you’re paying with cash, debit, or credit, disciplined spending is what matters most here.
‼️ Don’t Miss: How to Build Credit as a College Student (or young adult).
Myth 3: Miles and Points Are Too Complicated
The world of miles and points can look intimidating from the outside. But at its core, it’s surprisingly simple:
Earn points through everyday purchases.
Redeem them for travel.
That’s it. 😄
Travelers who get addicted to this stuff can transfer points to airline and hotel partners for even better value (like business-class flights for the cost of an economy ticket). But even without any crazy strategies, just using a travel rewards card can unlock hundreds or thousands of dollars in free trips.
💡 Pro Tip: Tools like Daily Drop Pro make it easy to find award flights and maximize redemption value without hours of searching.
Myth 4: You Need Dozens of Credit Cards to Benefit
While there are surely people out there with overflowing wallets, most people don’t need more than two or three cards to rack up enough points for annual vacations.
The sweet spot for many is a setup that includes:
One premium travel card (for lounge access, statement credits, and high multipliers)
One mid-tier card with strong spending category bonuses
One no-fee backup card for credit building and occasional perks
This idea of a credit card trifecta can maximize points earned on daily spending, bonus categories, and major travel perks without any overwhelming overlap or upkeep.
Myth 5: Using Miles and Points Is Unethical
One of the more nuanced myths claims that free flights are paid for by people drowning in debt. While banks do profit heavily from interest payments, they also earn money from merchant interchange fees, annual fees, and cross-selling products like mortgages or bank accounts.
Yes, irresponsible credit card use still warrants rewards, but it’s definitely not the whole picture. Banks have multiple streams of revenue, and rewards encourage customer loyalty across their entire financial ecosystem.
For consumers who use cards responsibly, the upside far outweighs the ethical gray area.
Best Credit Cards to Start With
If the myths have held you back, here are some top travel rewards cards that deliver value right out of the gate:
Capital One Venture Rewards Credit Card: 2x miles on everything and the ability to pay for anything
Chase Sapphire Preferred® Card: 2x on travel and 3x on dining, with the ability to transfer points to United Airlines, World of Hyatt, and more
The Platinum Card® from American Express: Premium lounge access, airline credits, and elite hotel status (enrollment required)
Citi Strata Premier® Card: 3x on air travel, hotels, gas, restaurants, and supermarkets, with strong transfer options
These cards all have strong earning rates, flexible redemptions, and perks that can easily offset the annual fees. And, they just happen to be some of our faves. 😚
If you’re more of a visual learner, be sure to check out our full breakdown of these myths on YouTube.
Bottom Line
Credit cards are not inherently dangerous or complicated, and when used correctly, they can open up a world of travel opportunities.
Credit card myths are rooted in partial truths, but they’re worth a little research. When used recklessly, cards can lead to financial trouble. When used strategically, they can fund free travel, build excellent credit, and even give you valuable protections.
The key isn’t avoiding credit cards — it’s using them the right way. Stick to a budget, pay your balances in full, and take advantage of miles and points to turn everyday spending into that next dream trip.
