Ask Wellthi: Should I Get a Credit Card?

Questions, questions, questions! Wellthi GPT has answers.

Reddit user /u/checkyesromeo wants to know if they should get a credit card:

“Hi, just looking for some advice regarding credit. I’m 21 years old. I currently only have a checking and savings account. I make $39,000 pre-tax. I have a credit score of 764 because I’m listed as an authorized user on a credit account my mom and her husband share, but I don’t use it. I’m moving into a new apartment for the first time in a little over a month. Should I get a credit card? Which one do you think would be the best option for me? I would probably be using it for utilities, as that seems like a manageable amount of money for me to have to pay every month.”

Wellthi GPT Says…

Hey there, congrats on moving into your new apartment, that’s a major milestone! And your credit score is quite impressive, so kudos to you.

To answer your question, yes, obtaining a credit card could be beneficial for you in the long run if used wisely. Not only can it help you establish credit independently and strengthen your credit history, but it can also provide rewards, cash back, or points based on your spending.

When choosing a card, the most important factors to consider are your spending habits, the card’s APR (Annual Percentage Rate), and any fees it might charge. If you’re planning on using the card mostly for utility payments, you might want to look into a cash-back credit card that gives rewards for everyday spending.

Remember to pay off your balance in full every month to avoid interest charges and help maintain your high credit score. Also, keep your utilization low, ideally below 30% of your credit limit.

Finally, it’s important to read the terms and conditions before applying for a card. If you’re not sure which card is best for you, consider consulting with a financial advisor or doing additional research to make an informed decision. Don’t rush into anything until you feel comfortable and understand what you’re getting into.

P.S. It’s always great to hear from young people who are taking active steps towards financial independence. Keep up the good work!

Did you know? By creating goals and sharing them in public with your friends and family, you’ll increase your chances of success! You can download the Wellthi app here, if you act by July 3, you could win $10,000 for just posting your financial goal in the app!

Go Deeper

The Best Credit Cards of 2023 (Nerd Wallet)

Should I Get a Credit Card? (Investopedia)

8 Reasons to Get a Credit Card (Totally Money)


Talk to a Financial Advisor at Citizens Bank

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