Financial Planning Tip April 2026

April 2026

If you’re reading this, you probably have a credit score and at least one credit card. But we are surprised by the number of young people we have met recently that have neither. This is an important step in one’s personal financial journey. If you are a young adult, or have a young adult in your life, this might be a good opportunity to talk about building credit.

It used to be that credit card companies inundated college students with credit card offers, but no more. A first credit card an be hard to come by. Students can opt for secured cards or student credit cards. These tend to have low limits and high interest rates, but for a responsible student who makes small purchases and pays the balance off monthly, this can be an important stepping stone. Students can also become an authorized user on a parent’s account. This is positive if the parent is also a responsible user of credit. 

A credit card can be essential for some transactions, like renting a car. Having a credit score can help renters qualify for apartment leases. And of course having a good score means a more favorable borrowing cost for things like a house or a car in the future. Even though it might feel small, establishing a small credit line early on (and using it responsibly) can pay dividends down the road.