When did you get your first credit card?
For me I felt it was my first step into adult hood when I opened my first Old Navy Card my freshmen year of college.
My credit limit? $200.
Thankfully, I still have it, but not without a few mishaps and learning lessons along the way. Considering your credit is like your own pass to owning a house, a car or almost anything at all, I was excited to learn even more about my credit from this sponsorship with
Honestly looking back at high school (or even college), classes like Home Economics (which many schools don’t even offer anymore) should be a requirement for EVERYONE. Training on creating a budget, understanding your credit, and even buying your own home should be something we all learn. But we don’t and the irony is, no matter how good at sports, band or science we are, we all should know at least the basics to live.
But in speaking with almost everyone I know, the moment they were 18, they opened up a credit card. And then another. And maybe even another one before things all went downhill. Then they spent the next 7-10 years fixing their bad credit and building up their score so finally they might be able to buy a house, get a good job and plan for the future.
So honestly, these five facts aren’t just for teens, but for most of us. These are good reminders that a good credit score makes a huge difference in your lifestyle for decades to come so you should learn how to take care of it the right way.
1. Credit is not free money.
Credit is a good thing, if you treat it right. And it can be the end of you, if you don’t follow the rules. Credit is more like a loan with a really high repayment rate. And if you don’t repay it when you say you are going to, the companies that gave you that piece of plastic are going to make things difficult for you. They will hunt you down and tell everyone you know or that will make a difference in your life you don’t pay things as agreed and it will be much worse than being benched from a game.
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2. Get a copy of your credit report.
By law, everyone is entitled to one free report at least once a year. Thankfully gives you much more than that – for free. While it is your responsibility to manage your credit, that doesn’t mean you have to do it all by yourselfoffers free credit monitoring and notifies you of any significant changes on your credit report around the clock.
[Tweet “33% of Americans have never checked their credit report #MyCreditKarma #Ad”]
Credit monitoring is a service that tracks your credit report on a daily basis and notifies you of any significant changes on your report. Since the credit monitoring service will notify you any time a new account is opened in their name, many consumers use credit monitoring as a means of preventing identity theft. In addition, credit monitoring can help prevent errors from credit reports. Mostly notably, credit monitoring will notify you of derogatory reports such as a delinquencies from a creditor.
3. Learn to read your credit report.
I admit at first look a credit report looks like a lot like a lot of graphs, numbers and words that either you don’t understand or make it too hard to find the stuff you should be paying attention to. But it’s important to read it and understand what it says.
That big three digit number? That’s your credit score. You want your credit score to be at least 720, which is considered good by many creditors. Some aim higher than that.
4. Make a plan for change.
Sometimes you made the blunder and didn’t make a payment (or 10), but sometimes it’s just a matter of “cleaning house” with the credit agencies. Things happen. Unfortunately, if your credit has been compromised from a data breach or stolen card, you definitely need to stay on top of reporting what is yours and what isn’t yours. If you have something on your credit report you want to change, can help you find the right solution to fix your issue. Whether it’s a late bill from years ago, they will help you with a solution tailored to you.
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5. Make a plan for the future.
Are you planning to purchase a new home or get a loan to start your business? Then begin planning today with some of Credit Karma’s free tools like the Home Affordability Calculator and Simple Loan Calculator.
But there’s many more tools available from Credit Karma. All you have to do is sign up for free to begin taking charge of your credit future today.
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This is a sponsored post written by me on behalf of the Credit Karma™.
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Great tips. I got a credit card the minute I turned 18 and ended up racking up a huge bill in no time.
Great article & tips for every teen entering the spending arena. I got my first credit card at 17, and have had great credit ever since. My brother?… now, that’s another story.. lol
These are things we’re discussing with our young adult children now and have been for the past few years. I obtained my first credit card (JcPenney) when I was 17 and I’ve had it ever since. I use it on occasion and try to pay it off when I get my statement so I’m not wracking up interest charges.
I’ve always maintained good credit, but I also started out with huge debt. I’ve eliminated all of it now, but I wish I’d learned some basics when I turned 18.
These are all really great points. Teens need to learn to respect money now, so they’re not in major debt when they’re adults.
What great tips. when I was a teen my Dad would take me shopping twice a year for clothes. He gave me $100 cash and that is all I could spend. I learned really quickly how to spend it. HA! He made it clear that that $100 was my Credit Card. It taught me a lot…
My daughter’s credit card came just the other day. She’s 18 yo. She’s not a shopper and avoids stores like the plague, so we are, thankfully, lucky. .I’m still going to go over these important topics you brought up.
Wish i would have know about credit when i was younger. These are some great tips.
What great information! It is SO important to teach kids about this young because too often when they get in their 20’s they make a lot of mistakes with their credit and think it’s not a big deal.
Lots of great information! My daughters are not teens yet but I will definitely remember all of this. I want to make sure my kids are very careful with money.
What great advice! I think it’s so important to understand the credit is not money!
I totally screwed up my credit while in my 20’s, mostly due to my ex-husband and his terrible spending habits. I really wish someone had taught me about using credit responsibly when I was younger. I think I would have made much better decisions. I learned the hard way, and am slowly getting my credit back in check.
My mother signed me up for my first credit card, as an emergency back up. Turned out it wasn’t for my emergencies, though, but for hers. She eventually paid me back the amount she borrowed, but not the 9 months of interest and fees she incurred on it without my knowledge. I’m still paying it off, and that was 10 years ago. I haven’t had another credit card since.
This was awesome. I knew nothing about money or credit until I majored in Finance in college and started working at a bank. It’s vital information everyone should know!
I have two teens and this is a very important topic. Banks are so quick to give kids credit cards and it is so important to make sure they understand the responsibility involved.
Good info! I have bad credit so this is really helpful in teaching what NOT to do the second time around with regards to my credit.
This is so important. I feel like I was pretty clueless in the credit department when I moved out for college!
My grandparents sat down with me when I was 18 years old and thankfully got me on the right path for money matters and credit. To pay it forward, I did the same for my younger sister.
These are great topics! Something I need to talk to my teen about for sure!
My daughter got a credit card when she started college, but she can’t remember to pay her bill on time! It is so frustrating, but I guess she will have to learn the hard way.