Why is there so much "fiction" published about credit cards? There are two primary reasons that the subject of credit cards generates so much fiction.

1. Competition. You should be aware that credit card companies are in strong competition with each other. Almost every commercial bank, credit union, mutual savings bank, electronic bank, and many other lenders offer VISA or MasterCard accounts. Add to this equation Discover cards and American Express credit cards and you have an incredibly competitive environment. While credit card issuers are very careful about their advertising claims, the sheer volume of words can create confusion as listeners hear information differently.

2. Financial "experts." The widespread problem of mismanaged credit card accounts has given birth to a whole generation of credit experts, many with widely different opinions and advice. You've probably heard or read many conflicting claims and recommendations. For example, some experts will advise you to have multiple credit cards to give you more options and the ability to keep your monthly payments low. Other counselors will recommend that you keep only one credit card in your possession to help you control your spending. Neither of these opinions is fact, but is often presented as if it were.

As a result, much is said and printed that appears to be fact, but often is merely opinion. The truth is that credit cards are neither good nor bad. Those who consistently tout their benefits or criticize their existence often resort to fiction instead of fact to prove a point.

Credit card facts

Here are a couple of the lesser-known facts about credit cards that you might use to your advantage:

Fact: You can get some fees waived if you just ask.

One of the most common charges that your card company will agree to waive is a late fee. These charges are among a group commonly called "bad boy fees." These are cash penalties charged when you do something that violates your credit card agreement. Since late fees are extra income, they can be waived without direct harm to their bottom line. Simply calling and asking them to waive your late fees is often all that is necessary.

Fact: If you have excellent or good credit, be selective.

If you have good credit, take the time to be selective about all credit cards you consider. You should qualify for the best deals being offered. It is not necessary to merely settle for one card or another. You can choose the best ones for you. Whether you are interested in the lowest interest rate, the best frequent flier miles offering, or the highest cash back rebates, you should qualify for the best of the best.

Credit card fiction

The myths surrounding credit cards are everywhere. Here are a couple popular myths to consider:

Myth: You always have to pay an annual fee for rewards cards.

While it is true that many rewards credit cards come with an annual fee, there are many that do not. Much depends on the quality of your credit score. If you have excellent credit, you should be able to find credit cards that offer good rewards and have no annual fee.

Myth: Having multiple credit cards decreases your credit score.

This is a common untruth that is often heard or read. Should you have nine or ten pieces of plastic, it is possible that you may do some harm to your credit score. However, if you have three or four cards, and manage them properly, you might increase your credit score.

While it is difficult to estimate how many points you might add, showing that you can manage several credit lines effectively can actually improve - not harm - your credit scores.

It is important to minimize the myths and concentrate on the facts surrounding credit cards. Taking action of any kind based on one or more myths often creates problems in the future.

The easiest way to eliminate the myths is to carefully examine the real terms offered by different credit card companies. Using well-respected websites, like e-Wisdom.com, you can compare the facts about a wide variety of personal and business credit cards. This type of intelligent evaluation eliminates the myths and displays the important facts about all the major credit cards.

You can then select the best ones for you and your financial situation. Even if your credit score is only fair, you'll be able to select the cards that have the best terms available and are designed for those people with less-than-perfect credit.

Credit card fact or fiction series: Part I | Part II | Part III