As a young adult, credit genuinely scared me.
I’ve never been the type to miss a payment, spend money I don’t have, or forget to pay someone back, but even so, I had always heard horror stories. People drowning in credit card debt. Friends telling me, “It’s better to have no credit than bad credit.”
And for a while, that kept me away from credit entirely, not because I was irresponsible, but because I was uninformed.
So if you’re in a similar spot, scared of credit, or just confused about how it actually works, this post is for you.
What Even Is Credit?
Credit is a way for lenders, landlords, and companies to gauge financial trust. If you're applying for something like a car loan, mortgage on a house, or even trying to rent an apartment, your credit score is a major factor in whether you’re approved.
It’s basically your financial report card, showing whether or not you can handle borrowed money and pay it back on time.
How Credit Cards Work (In Simple Terms)
When you use a credit card, you’re not spending money from your bank account like with a debit card. Instead, you’re borrowing money temporarily, and then paying it back.
At the end of each billing cycle (usually monthly on a certain date, specific to you), you’re expected to pay back what you spent. So, if I spend $100 on gas and $150 on groceries, I owe $250 total on my credit card that month.
But here’s where it gets tricky:
You’re not required to pay the full amount. There’s always a “minimum payment,” but if you only pay that, and keep spending, your bill adds up fast. That’s how credit card debt begins.
Why Credit Matters
Even if you don’t need it right now, you’ll likely want it in the future, whether it’s for a car, an apartment, or just to show lenders you can be trusted.
Starting now, while your expenses are small, is a smart way to build credit history before you actually need it.
How I Started Building Credit
I didn’t dive in without a plan. Here’s what I did (and still do):
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I chose one reliable expense to start treating like a bill.
I picked groceries, something I already spent money on regularly. This made it easier to pay off each month, since I was budgeting for it anyway. -
I got pre-approved before applying.
Choose a card that offers pre-approval (which doesn’t impact your credit score). It helped me avoid hard inquiries from cards I wasn’t going to qualify for. Applying for multiple cards can reflect poorly on you, so only apply for cards you get pre-qualified for. -
I picked a cash back card.
I liked the idea of getting small rewards for money I was spending anyway. Yes, it has an annual fee, but for me, it was worth it. It can be used for travel, gift cards, and general shopping. -
I paid my bill a week early.
Never just on time, always early. It helped me avoid stress, and I never once missed a payment.
What I Learned (The Hard Way)
Even if you pay off your balance, spending too close to your credit limit (the amount you're allowed to spend on your credit card) will still hurt your score.
Why? Because high usage looks risky to lenders, it suggests you’re relying too heavily on borrowed money. It doesn’t matter if you pay it back… they still don’t love it.
So now, I try to stay decently under my credit limit, even if I know I can afford more.
My Current Score & What’s Helped
I started with a score of 598.
Now, less than a year later, I’m at 734 as I type this (considered average, the highest being 850), and my credit limit has increased to double what I started at, and that’s with only one card and a single recurring expense.
Credit is something that grows with time. The longer your credit account stays open and healthy, the more your score improves. It’s okay if your score isn’t perfect right away, mine isn’t either.
My Advice If You're Just Starting
- Start as early as you can, even if it’s small.
- Use your card for one expense: gas, groceries, hygiene items, something predictable and small starting out.
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Pay it off every month.
And if you can, pay early.
If you already have credit card debt, don’t apply for more cards, focus on paying down what you owe.
And if you struggle keeping track of debt or spending, my Monthly Budgeting Template can help.
It’s the tool I use to manage everything, income, bills, savings, debt, and day-to-day spending, all in one place.
Final Thoughts
You’re not dumb for not knowing.
Credit isn’t something most of us were taught, and sometimes, the people around us only talk about it when it’s already gone wrong.
But building credit doesn’t have to be scary.
Start small. Stay consistent. Know that you’re not behind, you’re just getting started.
And that’s more than enough.