Credit Cards!

So I fell a little bit behind this week due to the flu, but I'm back! It's amazing how much better you feel when you actually take time off when you're sick. Normally I try to power through but this time I took my time and now I'm feeling (almost) better than ever!

It's no surprise that credit cards would come up at some point in discussion and there will probably be some information in this post that you will want to follow and some that you'll shake your head at. REMINDER: all of my posts are based on my own personal experiences! You are free to take my advice and do whatever you'd like with it!

One of the first things I did when I turned 18 was apply for a credit card. I heard so much talk about how you needed to have a good credit score to get a house and I knew a house was in the somewhat near future for myself so I wanted to get started as soon as possible. I was approved, not for a crazy amount of credit but enough that could get me in trouble. Confession: I was SO paranoid when I first got my credit card. So much that I didn't even use it for the first six months. The very first time I used it I remember it vividly. I went out with a friend for lunch and thought hey, let's try this thing and see how it goes. I swiped it, dropped my friend off and immediately rushed to the bank to put a payment on my account. This went on for three months. I used it, I paid it, I had a $0 balance at the end of every month. I felt like I was winning this whole credit card game that so many people fail at.

Fast forward to Christmas of that year. I went a little overboard on gifts (for everyone else and myself) and I used my credit card because I thought great! So many Airmiles! (note that I only got 1 mile for every $20 spent) I used my card like it was nothing and at the end of that month I got my bill and my face went white. I knew I screwed up. Bad. I overspent on things that weren't necessary, I went out three nights a week and just put everything to the card. I lost track, and evidently felt like I failed myself. I knew I had to get rid of the card, but silly me said no no keep it otherwise your credit score will go down.

So I paid it off, and took my bank account waaaaay down. That right there was a huge slap in the face and a massive wake up call for me. Now I've never actually maxed out any of my cards nor have I had to hide it while I've paid it off. BUT my savings have taken a hit a couple of times because I lost control.

During school I used my credit card more than I like to admit. I felt like it was that security blanket and it was nice to not see my savings go down every week when I spent my savings on coffee, Subway and energy drinks. Do I have regrets about getting a credit card when I was 18? No. I think it taught me a very valuable lesson. Do I wish I would've called the bank and asked them to drop my limit by about 80%? 100% yes. Had I known better, I would've got a very small limit and only used my cards for gas or something that was necessary at the time. I let things get out of hand and for that I wish I knew better.

Do I think getting a credit card at 18 is a good idea? I think if you are SMART with money, it's a great idea to get one right off the bat. You will build your credit score from a young age and be able to gain access to more credit when it's time to make bigger purchases. My top tips?

1) Do your research. There are SO many cards out there and everyone has a different reason for why they want/need one.

2) Get a no fee card. If you are in university/college it really doesn't make sense to pay for a credit card. There are lots of student friendly cards out there that will get you good rewards or discounts and you don't have to pay!

3) Start off with a small limit. Take a look at your income and see what is reasonable for you. Again if you are a student, starting with a limit of $200-$500 is probably the smartest thing to do especially if you're only working part-time. There is no sense in spending a whack load of money that you don't have.

4) If you have little to no savings, stay away from a credit card for a while. Your future self will thank you.

5) If you're worried about overspending, hide your credit card at home in a safe place. Don't keep it in your wallet or you risk the temptation of buying those extra chips at the grocery store or the new top at the mall.

If you aren't sure about credit cards, do your research first. Like I said, I don't regret jumping in because it taught me a very valuable lesson early on, but knowing how much money I could have in my savings right now had I been smarter, I wish I would've taken the time just to stop and think.