This one is going to be short and sweet.
I recently just found out that many of my friends in their 20s don’t have a credit card.
I was dumbfounded.
Sure, people always warn of the dangers of credit cards if they are used irresponsibly (20% interest rates!!!!), but there are also many dangers of not using a credit card.
When you are in your 20s, you have so many life milestones that often require a credit check. If you aren’t working on building your credit, you will never be eligible for any of these things. Here are a few of them that often require a credit check:
- Renting an apartment
- Buying a car
- Buying a house
- Applying for student loan refinancing
- Cell phone plans
- Many, many, many more things
In short, I highly recommend to all my millennial friends to learn about responsible credit card usage, get a credit card, start using it (responsibly) each month, pay it off each month, and watch your credit score go up.
Whether you like it or not, our nation and many other nations are highly dependent on credit. The longer you wait to build it, the longer you are going to be ineligible for many important things.