Concept of the Month: Are You Credit Ready?

Natasha Rea Bank Leave a Comment

You’ve probably noticed that most adults have a credit card.  But you might be surprised to learn that many adults don’t use a credit card responsibly!  Young Americans Bank wants to help you understand what credit is and how YOU can use a credit card responsibly.  Then, we want to help you decide if you’re ready for a credit card!  But first, let’s review a few things.

What is credit? 

Credit is defined as confidence in a borrower’s ability and intention to repay. The credit history a person has typically determines how much they will be permitted to borrow – for what purpose, for how long, and at what interest rates. 

Why Do We Need Credit? 

We use credit to buy goods and services, get loans for cars, houses, school and businesses. However, credit is good for more than just shopping. Our credit history not only tells lenders about our borrowing habits, it also tells employers and landlords how responsible we are. If we have bad credit, an employer might not consider us for a job, or a landlord may not want to rent an apartment to us or our car payments and insurance premiums may get more expensive. 

What is the Easiest Way to Build Good Credit?

Pay Your Bills On Time!  Pay all your bills in full and on time every time and you’ll be building a good credit history. 

Debit vs. Credit

When you use a debit card, you’re taking money out of our checking account immediately.  When you use a credit card, you’re borrowing money from the credit card company.  Learn more about the difference between debit and credit cards here.

Are you ready for a credit card?

  1. Do you understand what a credit card is?
  2. Do you understand the dangers of using a credit card irresponsibly?
  3. Do you have a consistent source of income (job, allowance, etc.) that will allow you to pay your entire credit card bill every month?
  4. Are you at least 12 years old?
  5. Do you have a bank account at Young Americans Bank?
  6. Did you receive a good score on our Credit/Debit quiz?

If you answered yes to all of the above questions, you might be ready for a credit card.  Visit Young Americans Bank for more information!

Leave a Reply

Your email address will not be published. Required fields are marked *