By coinnews 
00:00 Speaker A
18 is widely considered to be the age to open your first credit card. According to Experian, this allows you to have as much time as possible to establish a solid credit history. So if you’re 18 or the parents of an 18 year old, what do you need to know? Our very own Kendall Little has the three things beginners need to know about credit cards before applying. Kendall, good to see you. So first you say, find out the type of card that you qualify for, for beginners. What options do they have?
00:40 Kendall Little
Yeah, so if you’re a beginner and you don’t have any credit history, you’re probably not going to qualify for those great travel or rewards credit cards like Ben was talking about before. Uh, instead you should apply for cards that you have a good chance of actually getting. Um, this is because many, too many new card applications within a short period of time can actually have a temporary negative effect on your credit score. So for example, student credit cards can be great if you’re still in school. They often come with cashback rewards on everyday expenses like groceries and gas that you can use as, as a student. Um, secured credit cards are another good option, but you should be prepared to pay an upfront security deposit when you open one of these cards. And then if you’re a parent and you have great credit, you might want to consider making your child an authorized user on your card account and that can really help jumpstart building credit for them.
02:01 Speaker A
So what should someone have in front of them when they go to apply? What information, what data?
02:11 Kendall Little
So applying for a new card is actually a relatively easy process. Uh, when you go to fill out your card application, you’re going to need some personal information like your full name, your social security number, your address, and then you also want details like your income and your employment status. After you submit that application, some issuers actually will let you know instantly whether you’re approved and may even give you access to your digital cards so you can start using it, while others might make you wait a little bit longer or wait for that card to come in the mail.
02:57 Speaker A
So what should they know about building credit before they get started?
03:06 Kendall Little
So, for the first thing, uh, building credit takes time. Like the saying goes, it’s a marathon, not a sprint. Uh, but a big part of your credit score is going to depend on paying your balances off on time each month. So payment history is the most influential factor in your credit score, so you want to make sure that you make at least your minimum payment on time when your statement is due. And then another important detail for building credit is going to be your credit utilization. So how much credit you’re using compared to what you have available. And to most effectively build credit, you want to make sure that you’re not spending too close to your credit limit and keeping your balances low, or ideally paid off in full each month.