There are many misconceptions about people in their 20’s using their credit cards. Fearful parents, relatives, and various other sources will often tell you and try to get you to stay away from them at all costs. However, the exact opposite should be encouraged. Young people NEED to use credit cards; however, we do need to use them wisely.
The thing about using debit is that there are no real benefits. You get no incentives for using them and actually end up getting charged fees if you use the debit card too much. On the other hand, credit cards offer many benefits. Through properly paying them off, you can develop a good credit score which will help with future purchases. The other thing about credit cards is you can choose from a variety of incentive programs such as air miles or cash back options. If you are going to be spending money you may as well receive some kind of true benefit for spending your money. Only credit cards really capitalize on this opportunity.
Also, if you are a good customer from time to time you may reach out to your credit card company say for example once a year and receive a retention bonus for staying with the company. Credit card use by young adults should be encouraged, although it needs to be encouraged to be used with discipline. Young people should not be avoiding credit cards but instead, should be stepping up and learning to use them responsibly and take control of their personal finances earlier on in their lives. Paying your balance on time and regularly is very key and a great habit to develop. The long-term benefits will be huge
Summary: Credit cards offer various benefits such as building your credit score, lowers fees, and incentives that make them the best option for making purchases. Young people should be encouraged to use credit cards but learn to use them in a disciplined manner and always make their payments on time