Credit Cards and 20 Somethings

Lately I’ve been reading more and more on personal finance. To be more specific I’ve been reading a lot about credit and credit cards.
Being only 21 years young I don’t have tons of experience with credit or related issues, but I have become very well informed on the subject for my age.
First off, I want to say that for those around my age (early to mid twenties) it is CRUCIAL to start building credit. When you get into your late twenties or early thrities you’re going to be wanting to start looking into getting a house of your own, being able to finance a car that doesn’t cost a fortune, or even get a loan. All of these things require credit. Unfortunately, in the current day economy, these things require an almost impeccable credit score to get a decent rate and sometimes to even be considered.
Credit cards, in my opinion, are a lose-win contract. And when I say “win”, it only applies to cards with rewards. Credit cards that offer rewards often reward you for paying on time and staying under your credit line. Rewards can be several things, most being frequent flyer miles, cashback, and some even offer a slight APR reduction for your purchases.
Just a little side note here: if you would like more information on credit card rewards or would like to compare cards to get an idea, head over to for more.
These are all nice little bonuses for your effort, but if you take a look at the applications for such cards you will notice that you will have to already have a good or excellent credit standing to be approved for these cards. So, in other words, these aren’t cards for us 20 somethings looking for a start.
Personally, I don’t use credit cards at all. I don’t own even one. There are many other ways that you can build your credit that are more valuable than these plastic demons that devour our lives.
A few alternatives for building credit are:
* Paying Bills On Time – This applies to just about any bill. Rent, cable, cell phone service, internet service, utilities, insurance payments, all of these can contribute to a good credit score if maintained well.
* Keeping Bank Accounts in Order – This is something that is overlooked often. Making sure you steer clear of overdraft fees, keeping a positive balance, and staying with banks for extended periods of time also contributes to improving your FICO score.
* Co-Signed Loans – This is thought of as the fastest way to build credit. Although I highly recommend not taking a loan, because it does put you in debt, this can be an easy way to better your credit score.
* Store and Gas Cards – Many department stores and gas stations offer credit cards for their services and products. These cards don’t rack up good score points as much as normal credit cards do, but they are typically easier to get approved for.
* Secure Cards – In all reality these are prepaid credit cards. Your initial deposit onto the card is your “credit limit”. You do have to pay interest on these cards and its usually very high. There are also fees that apply to most of these. Most allow you to become “unsecure” after a year or two of good standings.
These are all pretty good ways to increase your FICO score and become more eligible for loans and financing after proving you’re trustworthy.
Keep in mind, though, this is not a quick and easy process. Building credit takes a long time. And unfortunately making mistakes like missing payments and having bills sent to collection agencies amounts What Is An Advance Finance to taking 3 steps back after taking 1 step forward. So, if you choose to make it a goal to bring up your score, you HAVE to stay on top of things. Otherwise it will end in financial disaster.
Now, in my opinion, those that are in their twenties, thirties, forties, or whatever age group you fall in, shouldn’t put themselves on the road to demise by using credit Online Earn Money By Typing cards or loans. I believe you should budget yourself and save your pennies for everything you want. This includes cars and houses. IT IS POSSIBLE. Start saving now.
Most of you already know that main key to financial success, and if you don’t, here it is, SPEND LESS THAN YOU EARN. It doesn’t get much simpler than that. Live it and you CAN obtain your goals and desires.

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