An 18-year-old on the cusp of financial independence sparked a family debate by opening a Discover credit card to begin building their credit history.
The move was intended to set a financial foundation for future goals, but according to Reddit user marmar8888, their parents were against it based on their own history of bad debt management at that age.
"My parents are very upset, did I make the wrong choice?" they asked on r/personalfinance.
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Marmar8888, who turns 19 in a few months and plans to move out in January for school, said they signed up for the credit card to build credit so they can buy a car and rent an apartment.
"I've heard it's hard to do these things without a good credit score," they wrote.
Marmar8888 noted their own responsible habits, stating they've been "working and saving money and responsibly budgeting since I was 16," but their parents' concern came because they had a lot of credit card debt of their own starting when they were 18 and were very irresponsible.
"I’m open to any advice and guidance because I’m mostly on my own when it comes to research and understanding," marmr888 told the Reddit community, "and I just want to do the smart thing financially."
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Responses were largely supportive.
"A credit card is a tool that can be misused," wrote A_Starving_Scientist. "Getting one is not inherently bad, but it opens up the possibility of you getting into the type situation that your folks are afraid of, which perhaps is why they reacted that way."
"It can be a trap that so many people fall into your age," wrote baxterhan. "If you demonstrate that you're responsible for a few months they may not worry so much."
"They are doing what most parents do," wrote wistex. "They think you will make the same mistakes they do, so they become overprotective. As long as you don’t really make the same mistakes, you will be fine."
"Building credit can be powerful if used correctly," they added, "but disastrous if not used correctly. You have the power of credit. Use it wisely."
"Here’s the only credit card rule you need," wrote phunniemee. "Do not spend money that you do not have. Treat it in your head like a debit card, pay it off in full every month, and you’re going to be fine."
Financial experts support marmar888's decision, emphasizing that starting early is a key component of a strong financial future. A good credit score is not just a prerequisite for major loans; it can affect everything from interest rates to rental applications.
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Lenders, landlords and some employers use credit scores to assess financial responsibility. A good score can lead to lower interest rates on loans, saving thousands of dollars over time, and can be the difference between getting approved for an apartment or requiring a co-signer.
A key component of a credit score is the length of your credit history. Starting at 18 allows the credit clock to begin ticking sooner, positively impacting the score over time.
With payment history making up about 35% of a FICO credit score, experts advise making every payment on time. Even a single late payment can cause a significant drop in your score. Setting up automatic payments or calendar reminders can ensure that bills are never missed.
Credit utilization is another factor that impacts your credit score, accounting for about 35% how it's calculated. Financial experts advise keeping the ratio below 30%, with some recommending a goal of 10% or lower.
While marmar888's parents' concern stems from a painful lesson learned about debt, the consensus among financial planners is that responsible, early action is the best preparation for financial independence.
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