Biggest Financial Mistakes You Make In Your 20’s

16.

“I didn’t get a credit card until my late 20’s because everyone said I’d end up maxing it out and having to pay it off for years. Yes, it’s very tempting to spend a lot of money with your credit card, but without it, it’s way harder to build a credit score, and you need that for a lot of things. So, my advice is get a credit card early, but, be very mindful of how you use it. Don’t max it out, make sure you can pay off what you put on it, read up on the interest rates, rewards, etc.”

“The part about it that was bad for me is that the age of my credit is low, so, it reflects negatively on my credit score. I make all on-time payments, and my usage isn’t terrible, but my score could be higher if I’d opened it up earlier. Building a good credit score is important for things like loans, renting, etc. Credit cards aren’t worth it if you don’t use them, so do use them, but only spend what you can actually afford to pay off.”