Why credit cards are both a good and bad idea

Credit cards are no more than a tool. Use them wisely and you can get cash back, travel rewards, and other free stuff. Use them poorly and you end up paying a lot more for what you buy.

Building credit is a good idea. Using credit cards responsibly when you’re young can help you start building credit. When you have a good credit score (above about 680), banks and financial institutions can see that you are trustworthy and repay your debts. Then when you want something big, like a car or a house, not only will it be easier for you to get a loan from a bank, but you’ll pay a lot less too.

Credit card debt is a bad idea. If you have credit card debt, get rid of it. Period. Find a way to pay it off so it doesn’t hang over your head any longer that it has to. Interest charges and fees add up quickly, and they hurt people’s lives and relationships. No one wants this for you!

Bottom line: Using credit cards and paying them off, in full, every month, is a smart idea. Using credit cards to buy things because you don’t have the money is a bad move that will get you in trouble faster than you can swipe through TikTok.

Read more about credit cards here. Be smart out there!