Do you use your credit card properly?

BUFFALO, N.Y. (WIVB) - In today's economy, a good credit score is more valuable than ever, and your credit card is at the heart of it all.

The big question is, do you know how to use your credit card properly?

Let's debunk four credit card myths.

-A lot of people think that if they apply for a credit card and then choose to not call the 800 number and activate it, that it won't impact their credit score. That's false. Every single time you fill out an application for a new credit card, your credit score can get dinged by about 5 points.

- Here's another myth, that you have to turn your drivers license or ID over to a merchant when you give them your credit card. Merchants have agreements with Visa and MasterCard that they won't ask for ID. American Express and Discover don't prohibit asking but strongly discourage it. They don't want a clerk writing down your personal information and stealing your identity.

- Myth number three, if you pay on time and in full your credit report is fine. It's not true, because your credit score can be dinged if you almost max out your card, even if you pay it off in full as soon as your bill comes in. And by the way, 80% of credit reports have mistakes on them that cost you points.

-Final myth, you can boost your credit score by overpaying your card. Yes, it can temporarily boost your score. But the main thing to remember is you want to maintain a good credit history on all your cards.

You can check your credit report for free once a year from each of the three nationwide credit reporting companies, Experian, Equifax, and TransUnion.

This is the only authorized site: www.annualcreditreport.com.