Credit Cards

Credit Cards are a necessary evil. A lot of parents would strongly discourage, or not even allow you to get one due to them being very dangerous if not used correctly.

However, they are one of the best ways to save thousands of dollars over the course of your life. Having a good credit score gives you the ability to have lower interest loans when buying a house or a car, and allows you more benefits through your life.

You build your credit score by showing lenders (Credit card companies, banks giving you loans) that you can pay back money. The easiest way to do this is to get a credit card at a young age, and consistently pay on time, and to not use all of your available credit.

Building Credit

My recommended route of building credit safely at a young age is simple. When you turn 18, apply for a credit card. It can be from a local bank you already have history with, or one of the recommend cards. Even without a job or income, you can still qualify for a card.

The absolute safest way to build credit is to make one small purchase a month, and set up auto-pay for your card. For me, this is my Spotify subscription. Every month, it automatically charges me, and the money pays the card off from my bank account. With this, I don't even have to keep my credit card on me. I can leave it at home, and not even think about it, and consistently build credit.

Steps Forward

After 6–12 months after opening your first card, you might feel compelled to apply for another one, or start using your credit card. If you follow one rule, it'll be very hard to get into trouble. Don't spend money you don't have. Treat your credit card as a debit card. Pay every month off in FULL, or better yet, use autopay. I would not get more than 2-3 credit cards your first 1–2 years. However, to make the most of your cards to build credit, ensure you make a payment once a month with each card (even if it's only a dollar). The amount of credit you use per month doesn't matter (Unless you use more than 50% of what is given to you) in building credit. Focus on consistent payments, and self control.

A strong credit score when your young is INSANELY good. Not only does it help with lower interest rates, it also helps with lower rates on car payments, house mortgages, and lower insurance. Setting up a strong credit score early allows you to save money throughout a lot of your life.

You also get amazing benefits using credit cards. The better your score, and the older you get, the better the perks are using a credit card. Although credit cards are a corrupt system and are idealistically evil, they can provide lots of money and travel points if used correctly, allowing families to have fully paid vacations when used right.

Pay off

Questions? Let me know!

brickcooksey@gmail.com

806-206-8996