Have you been told growing up that credit cards were a trap? I remember my parents telling me that I wasnt allowed to get a credit card and to stay away from them. While not allowing a high schooler to get a credit card is probably a smart move on my parents part, making someone fear credit cards is not!
When I went to college I looked into getting my own credit card. My very first card was from Citibank with a $3,000 limit. It was designed for students with little to no credit. This was the single best move I made for my financial security. Starting a credit line relatively young can have great affects on your credit score. One of the factors that goes into your score is “length of credit”. I still have that Citibank card to this day with a few recurring charges keeping it alive.
All of this being said, just because you have a credit card doesn’t mean you should go buck wild charging things to it. Every single card that you have should be paid off in full every single month. You avoid paying any interest and it helps build your credit in a positive way! If you feel you can have enough self control to limit yourself to what you can comfortably pay off every month – you should get a credit card right now!
When you go to buy a house, car, or apply for any other loan – your small credit card that you got when you were 18 years old could really have a positive impact.
- You need credit cards to help build your credit
- Starting credit young can have a very positive impact on your score
- Apply for a card meant for people with very little credit – it will be easier to get approved
- Know your personal spending limits and pay off your card in full every month
- See your credit score rise!
More posts to come on my favorite cards and how you can leverage rewards for super cheap vacations!