The first thing you learn when you enter the “real” world is that you need two things:
Money & Credit
They go hand in hand. You need money to build your credit. Then you need credit to purchase anything you want.
Most young people don’t understand credit, they just want to make money. However, I knew enough about money management to investigate the concepts behind credit.
So…as a college sophomore, I decided to apply for my own credit card to start building my credit. The limit was about a thousand dollars, which was fine because it was a start.
It was a simple student card that I used for gas, groceries, books, and anything else I needed. I was always told to buy furniture or any type of large ticket items like a television or anything pricey. The key is to pay it off within 6 months or so just to show that you can handle making your payments. Plus, the best thing about getting a new card is the zero interest for a year or so, that is what makes it so easy to abuse it. However, I still paid more than the minimum, if not the full balance, every single month.
Despite the fact three years later, I still needed a cosigner for my first apartment and that is perfectly fine. Everyone needs help in the beginning so don’t be afraid to ask for it!
15 months later…
I decided to start my own business. On a credit card. That I got with MY credit. My limit started at over three thousand! It may not be much to some but it was a lot for a struggling Ph.D. student.
Then to make it even better, there were tons of perks with the card. One year with no interest, cash back on every purchase (which they matched dollar for dollar within the first year), and plus they have a 5% cash back schedule that alternates every three months.
I made money from spending money!
It was great and I recommend it to everyone who needs a good card that has amazing perks!
I used a Discover card to build my business. Now over a year later, it is still helping me save money. Between the discover deals that I can use while shopping, the rotating 5% cash back bonuses, and the multiple ways to redeem those bonuses I fell in LOVE with this card. Discover is a great company with a wide variety of cards to choose from, look them over so you won’t miss anything!
I know people say don’t use credit cards because they can get you into so much trouble but in my opinion, EVERYONE needs one. For emergencies, building a business, or just renting a car. The key is to be responsible. Check out this article on how to use credit cards as a helping hand but NOT a crutch!
Be sure to let me know your first credit card in the comments below! Tell me what was good or bad about your experience.