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Writer's pictureRishi Hariharan

Credit Cards 101: What Every Teen Needs to Know

Hey future college students! Let's talk about credit cards - those plastic rectangles that can be both awesome and dangerous. Here's what you need to know:


What's a Credit Card?

It's like borrowing money from a bank. You can buy stuff now and pay later, but you have to pay it back!


The Good and Bad

Good:

  • Builds credit score (your financial report card)

  • Handy for emergencies

  • Some give rewards

Bad:

  • Easy to overspend

  • Can hurt your credit if you don't pay on time

  • Interest makes things more expensive


Interest: The Hidden Cost

If you don't pay your full bill each month, you owe extra money called interest. Example: A $100 purchase could end up costing $120 or more!



Golden Rules

  1. Pay on time, every time

  2. Try to pay in full each month

  3. Don't max out your card

  4. Only buy what you can afford

  5. Understand your card's terms


Your First Card

When you're 18, consider:

  1. Student credit card

  2. Becoming an authorized user on your parents' card

Remember: A credit card isn't free money - it's a tool. Use it wisely!

Want more money tips? Check out fiscally-fit.org!


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