Should I get my first credit card?

Claire:

It’s great that you’re thinking about taking a big financial step toward adulthood! Credit cards are very powerful tools that can do a lot for you, but before you get one, it’s important that you understand what credit is and the potential dangers and benefits of opening a line of credit. While it might seem scary, financial literacy is important for growing your independence, and a shockingly low number of people, only 4 of 7 Americans, understand financial concepts. Learning about credit cards and money is a great first step toward setting yourself up for success. Reading The Stute’s biweekly column “Advice for broke college students,” by Hima Thummala could also help put you in the right direction to achieve financial literacy. Because I’m not a financial expert, I would advise you to do your own research. Some highlights that I’ve learned from getting my own credit card is don’t put too many charges on each month, pay off your bill in full every time you get it, and don’t treat your credit like free money. The biggest issue that people face when using credit cards is that they treat their credit as a way to spend now and pay later. This mindset, along with not understanding its consequences, can lead to high interest-rate debt that can follow you and drain your credit score for years. However, you should also understand how to build your credit score and how it can benefit your life. If you understand all of this and feel confident, I would say go ahead and get your first credit card!

Ethan:

This sounds like a question for Chase Bank; I am no expert in financial literacy, but I can make some assumptions and help you out. I’m going to assume that you have no idea what you’re doing if you expect Claire and me to sort out your financial crisis. Since you seem to lack a grasp on your financial situation I would have to recommend not getting a credit card. However, if you are going to get one anyway I would have to recommend not being broke or else you might plunge yourself into debt. Since you probably have no money, your journey to finding a credit card will be more difficult. There have to be millions of different credit cards that have a lower risk of ruining your life, so I advise doing your research and taking time before making a decision. I knew a guy that got a credit card and ended up in prison after a couple of months so I would be careful. His criminal history is more closely related to his intent to distribute than his credit card issues, but the idea of being careful still stands. If I have learned anything from giving advice, it is that I can only help you so much. Make decisions for yourself and live with the consequences. I have no desire to get tangled up in your personal problems after you read what I have to say. If you actually wanted to take my advice, I would tell you to not get a credit card and deal exclusively with cash. Good luck!