What is credit and why is it important for teens?

What is credit and why is it important for teens?

Credit is the ability to borrow money or access goods with the understanding that you'll pay later. It's important for teens because it helps build a credit history, which can affect future loans, like for a car or college.

How can I start building my credit as a teenager?

You can start building credit by getting a secured credit card, becoming an authorized user on a parent's card, or taking out a small loan.

What are the risks of having credit?

The main risks include accumulating debt, damaging your credit score if you miss payments, and potentially facing high interest rates.

How does my credit score affect me in the future?

Your credit score can impact your ability to get loans, rent an apartment, and even secure a job, as many employers check credit.

What should I do if I have bad credit?

If you have bad credit, focus on paying off debts, making payments on time, and checking your credit report for errors.