That doesn’t change regardless of the medium of payment that I use.

But I hear stories of other people who have problems, including one friend’s boyfriend who refers to his CC as “free money.” So the answers certainly aren’t one-size-fits-all.

This mania with getting credit right away so as to “develop” a credit score is dangerous. If your sister develops good financial habits and saves money she will be fine, and have no issues in future. Far more fine than developing a debt habit.

The main reason I have had CC’s in the past was for the rewards. However, our current bank (Whitney) also gives us rewards for spending on the debt card. I figure that’s the best of both worlds!!

Neither of my parents are financially responsible people, and I can’t rely on them for any kind of financial advice or help. I was super wary of cards because I didn’t want to have debt like theirs (that sounds snooty, but it’s not- I feel for them, I just don’t want huge CC bills like them). I bought the card to build credit, and used it ONLY for gas at first. Which worked well, so I started using it for other things. But the rule was that I had to pay it off online within a few days of charging it, so it never built up and I never paid interest.

I haven’t had flawless card usage since then (who does?) and ended up putting a couple of emergencies on there when I probably could have managed it out of my bank account. But I’ve paid maybe $5 in interest in the past 3 years total? So I feel like that’s a success.

And now at 22 my credit is good enough that I don’t have to scrounge for cosigners in the event that I ever need a loan, or have to pass a credit check for an apartment (which is common around here). And that’s awesome, because finding a cosigner when neither of your parents can do it is no fun.

So I guess I agree with most of what you say- if you’re trustworthy with a card, it can have huge benefits. But you have to be honest with yourself, and look at your past history to determine if you’re REALLY trustworthy. Do you have a history of overdrawing your account? Don’t sign up for a card until you have that sorted.

Side note: I hate the advice that you should stick to as low of a limit as possible. High limits are helpful, credit-wise. The only reason they hurt is if you tend to load up the debt. But if you do that then you shouldn’t be getting a CC in the first place, in my opinion.

Yet, I feel like if I don’t sign my sister up for a card, I’m doing her an injustice. If we don’t get her credit history started asap, she could have problems getting loans when she’s graduated and responsible.