No Credit Isn't Good Credit
When you get declined for a line of credit due to your age, you may think that this will keep you from overspending and accruing too much debt. While overspending is certainly a risk you take when you open a credit card, having no credit doesn't help your situation either. Landlords, lenders and even employers use your credit score to get a sense of your ability to manage your finances responsibly and pay down debt. Without any credit to your name, you essentially are a blank slate. Building your credit means building your financial reputation--and your future.
When you get approved for that very first credit card, don't forget to read the fine print. It's better to start with a smaller line of credit at a lower rate than a big line of credit at rates that will keep you in debt. Shop around to ensure that the interest rate on your purchases won't prove to be a barrier between you and a balanced budget each month.
Student Cards are Smart Cards
If you're a student, or a young person under 21 who is new to the credit card game, it's worth looking into student credit cards as a way to start building your credit while creating an emergency financial safety net. Student cards often offer low rates, especially for students who pay their bills on time every month without fail. A student credit card can be a great way to establish your financial reputation before applying for a new apartment, car loan or even a first job. Manage your credit well, and your credit will help you meet your financial goals.