Should I get a credit card? -HS Junior

Should I get a credit card? My Economics teacher said that he has navigated through the American system without one, but many people say that credit cards are an excellent tool. I know there are many pros and cons, but what do you think? Also, what age should I get my first credit card, if you think I should get one?

Yes, I believe you should get a credit card. You can get a card in your own name starting at 18. You’ll likely have a credit limit of $500-$1500 at that time. Why get a card? Because if you control it, it teaches responsibility, planning, and consequences without giant risk. Most importantly, it’s the beginning step to establishing a good credit rating. 

Note, that’s very different than you should use a credit card. If you do use your credit card, unless it’s an emergency (or you’re incredibly disciplined), don’t buy something you couldn’t pay cash for at the time and pay it off immediately - even before the bill comes. 

I wrote a book on this stuff (Cradle to Credit Money Lessons Birth to 18) and Mr. ZZZ has a copy in his classroom. Read the section on credit reports and credit cards. Pg 107+. A credit score is your adult report card on how responsible you are. The assignments you complete to build that report card is how and when you use a credit card. Don’t get a card on a whim for some free t-shirt offered to you at the mall or when away at college. Research best credit cards for young consumers. I’d suggest a card that gives you cash back. And then use the card once or twice a month AND immediately (like, before you get the bill) make a payment to the card to pay off the balance. Sure, emergencies happen. You may need a car repair that you don’t have the cash for upfront and must carry a balance for a month or two. That’s life. BUT, if you carry a balance forward every month it’s the equivalent of borrowing money from the mafia. The interest rate is CRAZY high because you’re young and without a credit history.

I personally LOVE to be the person credit card companies HATE. I have a credit card I only use when I know I can pay the balance in full immediately. But they still have to give me cash back on my purchase so it’s more or less costing the company to have me as a customer. I love that. 

Credit cards also do provide some protection on larger purchases and if you encounter fraud so there are benefits to using them. I’m not recommending a specific card because reward programs and perks are always changing. But if you have more questions when comparing cards, let me know.