Read time: 3 minutes.
Welcome to the Friday FinTips newsletter, where I provide tips to simplify how you manage money.
The Point
Credit cards can be a great tool for your financial future…but only if you use them right.
What I Did
When I turned 18, I got offers from a bunch of credit card companies who wanted me to open an account with them. Of course I fell for it, and within the next year I had a handful of credit cards. BUT, I was very cautious with how I used them. I treated them like cash and set aside the money to pay them off.
Over the next couple of years, I started to see the pros and cons of each card (mostly cons). I wanted something that offered more benefits and had better customer service. That’s when I came across Amex. I opened an account when I was 20 and still have that account today. It’s been a great experience. (I feel like I should be getting paid for this!)
My goal has always been to build my credit score so when I “grow up” I can get financing for things like a house and a car. It’s something that takes years to build and a lifetime to maintain. But, it’s really important…unless you’re paying for everything in cash because you’re rich (which I am NOT).
What You Can Do
Find credit cards that offer the benefits you’re looking for (use websites like NerdWallet to find them).
Try to avoid opening & closing accounts regularly. It’ll hurt your credit score.
If possible, avoid keeping balances on your cards (unless you have 0% interest).
Remember you’re in it for the long haul. Building a good credit score takes time, so hang in there.
That's all for now. Go enjoy your weekend!
-Logan
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