FALSE! - This may be a good way to get rid of debt, but it's utter destruction to your credit score. Why? Because of the 5 factors that make up your credit score, one is how you use and manage your credit, a factor that makes up 30% of your score. That's 255 points! Use the cards every month for gas, groceries etc. but pay them off.
Myth #2: Consolidate Debt onto 1, Low-Interest Credit Card
FALSE! - Everyone gets the tempting credit offers to consolidate your debt onto one credit card but when you max out that card, your credit score will drop 60-100 points overnight! Do not consolidate your credit card debt UNLESS, the balance will be under 30% of the available limit.
Myth #3: It's Okay If You Go Over Your Credit Card Limit Because The Bank Authorized the Purchase
Myth #4: Closing Credit Card Accounts Will Help Your Score
FALSE! - Don't close credit card accounts at all, with the exception of closing a joint account after a divorce. You will lose points in two areas: in the Amounts Owed Area which is worth 30% of your credit score, and in the Length of Credit History Area which is worth 15% of your credit score.
Myth #5: Becoming an Authorized User on Someone's Credit Card Makes You Legally Responsible for the Account
FALSE! - While the activity on these accounts, good or bad will show up on your credit report if you are an authorized user, but you are NOT legally responsible for terms of the agreement.