Credit cards can be powerful financial tools, when used wisely. With so many options available today, from travel rewards cards to low-interest options and retail cards offering exclusive discounts, it's important to choose one that aligns with your lifestyle and financial goals.
For teens and young adults, a traditional credit card with features like cash back, purchase protection, and little to no annual fees can be a smart and straightforward choice. Learning how to manage a credit card responsibly is a key step in building a strong financial foundation.
Before swiping your card at the register, ask yourself:
· Is a credit card the best way to pay for this purchase? Would cash or a debit card be more appropriate?
· Do I understand how interest will be charged?
· Are there any fees associated with this transaction?
· Will I be able to track minimum payments and due dates easily?
Understanding your payment schedule, minimum payment requirements, and other terms helps you stay on top of your finances and contributes to a strong credit score.
Credit cards are one of the fastest ways to build credit. Issuers report your activity to credit bureaus monthly, including your balance and payment history. Two key factors that influence your credit score are:
· Payment History: Consistently paying your bill on time builds a positive credit record. Missed or late payments, however, can negatively impact your score.
· Credit Utilization: Using more than 50% of your credit limit regularly can lower your score. Keeping your utilization below 30%, or better yet, paying off your balance in full, can help improve it.
Telhio Credit Union's consumer credit cards are designed to help you pay down balances faster, earn rewards, maximize cash back, and build your credit history. Explore your options at telhio.org/personal/credit-cards.
