Discussion#5

1) List at least two pros and two cons for getting a credit card at age 18? What age did you get a credit card; share more about your experience? If you do not have a credit card, explain why not. 

* 350 word minimum for discussion posts

2) 50 word minimum for reply for the following post:

There are many advantages and disadvantages to getting a credit card at the age of 18. In my opinion, if we are not aware and cautious of the terms to our credit cards, these advantages can lead to disadvantages. For example, many people would want a credit card as an emergency plan or the idea of being able to spend without actually having to pay in the moment. However, if we don't accurately calculate our spendings, or go over what we are able to cover, we can go into debt and the interest rates will increase. Another reason I think that advantages can lead to disadvantages is the ability to building credit early on. However, our credit can be easily affected if we miss or have a delayed payment, open too many cards that aren't actually approved, or going over limits. 

I think that most students don't actually receive enough education and/or knowledge on financing and building credits so they think that having credit cards early on is the best way to go. Another thing that I've noticed is that often times, people are influenced- maybe someone heard that their friend applied for a credit card and they got approved for a certain amount, and recently they've been buying so many new things. 

I got my first credit card at age 19, when I started working full-time because I well more knowledgeable on credit cards and my job could help me make my payments on time. I am very well aware of my spending and limits. I always estimate how much my upcoming paycheck would be, prioritize my credit card payments first and then put money into savings. In my opinion, I would rather put less into my savings per paycheck than have my interest rate take most of my paycheck if I made a late payment. 

In addition to this, my parents are constantly reminding me to check my spending and limits- which I know isn't always the case for everyone to have someone reminding them. I think that having trackers and understanding how your credit cards work is the biggest step, especially if you are opening one at a young age.