Generation Z Credit Card Usage

Best Age to Get Your First Credit Card?

Although it’s a matter of personal preference, the age of 18 is usually a good time to get your first credit card. A low balance starter credit card is a good option to help you learn how to effectively manage your finances and learn about billing cycles, statement balances, managing a budget, grace periods, APRs, etc. You’ll likely want to be an authorized used on a credit card prior to this age, just so you a familiar with credit cards in general. Everyone has their own preference but 18 is a reasonable age to start using cards as you graduate high school and possibly head into college. However take this with a grain of salt as everyone develops and matures at different ages, some much sooner than others.

Keeping Track of Payments

As a young adult it’s crucial that you keep track of payments. If you fear you’ll have trouble keeping track of payment due dates you can remain on track by setting up an automatic monthly payment or learning how to setup a monthly budget. If you have a monthly budget established you can setup a calendar event a few days before your due date or try to make a mental note of the due date every month. You can also opt to pay the card as you make transactions every so often, however this route is best suited to those that are frequently using the app or check statements quite often. It’s all a matter of personal preference and what method works best for you can be decided at your discretion. The main thing is that you take care of your payments and make sure you don't miss on barring any major life circumstances.

Financial Literacy

Younger generations like Generation Z are learning a lot more about credit and personal finance than they have been in previous generations. Although personal finance was taught in some schools to some extent, it wasn’t until after the 2008 financial crisis that it has become more of a standard. It’s important to familiarize yourself with personal finances if you want to avoid having a credit card monster on your back. Financial literacy is of vital importance to our youth and thankfully is now more widely acknowledge of being such.

Building Credit

There are many ways to build credit as a college student and young adult, making timely payments is just one piece of that puzzle. As you continue to use credit and make timely payments you will naturally build credit overtime. Besides this you’ll need to manage your utilization rate, make sure you’re not applying for too much credit and practicing good credit habits. All of these factors are what combine to create your credit score and ideally a good one when it’s all factored together. As a Generation Zer with all the technology you grew up utilizing you have the financial world at your fingertips. There's no limit to what you can't do. You just need to make sure you are practicing safe finance and are familiar with your budget.