How Getting a Credit Card Changed My Perspective on Personal Finance
At the tender age of 15, I asked my Mom for a credit card. Yes, a credit card, not a debit card.
I always thought that credit cards were super cool, the swipe of a card allowed my parents to pay for my legos, nerf guns, and the occasional Hot Cheetos. This magical card was what allowed my parents to pay for the whole family’s wants and needs.
Little did I know, the credit card is a double-edged sword ⚔️
Credit cards work by offering a line of credit that can be used to make purchases wherever the card is accepted, then repaying what is spent monthly. If the minimum payment isn’t met, interest charges will begin to accumulate, simple enough.
SPEND ONLY WHAT YOU CAN PAY
Start!!
Getting a credit card was never on my mind, I was the regular pre-teen kid who only paid with cash n’ coins.
However, I realized that carrying cash, in general, was a hassle. Having a single card that I could pay with sounded amazing.
So I did just that, I registered for a checking account at my local Chase and received my card two weeks later.
Life didn’t change, I replaced my cash with my card, and occasionally helped cover friends who couldn’t pay cash.
Until…
Youtube
What influenced me to get a credit card at an early age was just watching personal finance videos of Youtube. I watched the likes of Graham Stephan, Nate O’ Brien, Andrei Jikh, and Charlie Chang. These YouTubers got me hooked on just learning and getting more fluent in personal finance. However, there was one focused niche in personal finance that got me HOOKED.
This niche was none other than — credit cards. Youtubers, Brian Jung, and Ask Sebby from Youtube solidified my interest in credit cards and opened my eyes to the whole world of personal finance. From credit cards to stocks, to streams of passive income, it was an art. I was determined to start my journey and ensure my future success.
Step 1: Do what I’ve always wanted to do, get a credit card!
Research
Getting a credit card at 15 isn’t something that is normally done. Usually, people acquire credit cards in or out of college. Even so, the credit cards younglings get are entry-level cards because they have no previous credit history.
This has many drawbacks:
- Building credit history takes time
- Sign-up bonuses are nonexistent
- Credit score is also nonexistent, 700<
But what if I told you there was a way to bypass all 3 drawbacks and enter straight into 2% cashback and get any reasonable credit card.
It’s called becoming an authorized user — an authorized user is a person who can access the credit line of the primary user. Being an AU allows the person to build credit history which in turn helps with building your credit score.
Overall, there are virtually no drawbacks, except that your credit score will be influenced by the primary user. Luckily, my parents are well off meaning having a credit card is the same thing as using a debit card except I get 1.5% cashback, and history to help build my credit score
I consulted with my parents, did some convincing, and the next day I was off to my local Chase to register as an authorized user ✌️
The Now
Well, what’s changed — Nothing
My spending habits are still the same even with a credit card. But what’s changed is my view of finance and how important it is.
Being able to manage/produce your OWN money is a superpower that everyone should have.
What I gained from getting a credit card was the fire to pursue further knowledge in the subject. Something irreplaceable
Personal finance may seem boring, or maybe useless, I used to think that way too. However, in this day and age where money is so prevalent, it is a superpower that everyone of all ages should possess.
THANKS FOR READING⚡️
I will be writing more about my Instagram experience, financial freedom, and whatever I find interesting. Please let me know in the comments on how I can improve my writing, and if you enjoyed please consider smashing that follow button!!
— Tristian Xu
