The Benefits And Drawbacks Of Credit Cards For Youth

Credit cards can be a helpful financial tool, but responsible and disciplined use is necessary. Young individuals can establish credit, receive incentives, and stay out of the traps of credit card debt by being aware of the opportunities and risks and adhering to recommended practices.

- CA Gaurav Kenkre

CA Gaurav Kenkre is a CA in practice for the last 11 years. He is a regular speaker at various professional organizations, trade bodies, MNCs and Government bodies. He also writes regularly in local as well as national publications. Besides this he holds various positions in bodies such as ICAI, GCCI, College bodies, Rotary etc.

For young individuals, credit cards can be a helpful financial tool, but there are risks involved with using them carelessly. It's critical to comprehend the advantages and possible drawbacks of credit cards as an increasing number of young folks obtain their first one. Here are some of the main advantages and disadvantages of credit cards for young people.

Benefits:

1. Credit history building: Starting to establish credit as a young adult is one of the main benefits of obtaining a credit card. Getting authorised for loans, renting an apartment, and even landing a job all depend on your credit report and credit score.A good credit history can be built by using credit cards sensibly, which includes keeping your credit utilisation low and making on-time payments.