BY AARDE WRITES for WEEKLY VOLCANO | 10/23/2026
Hey Aarde,
I’m just turning 18 and want to set myself up for success. My mom isn’t super good with money, so I want to be sure I make good choices as I enter adulthood. Any tricks or tips for how to build credit? I don’t really want credit cards, but I guess that’s the only way? Thanks
Signed,
Baby Budget
Hey Baby Budget,
This inquiry says a lot about your self-accountability at such a tender age. I am impressed! It took me about forty years to figure out how to play this game, but I have a feeling you’ll be collecting high-value assets in no time!
First, understand that you will make mistakes. Give yourself some grace as you learn the monetary system that we are all stuck with. You are not alone in getting out of the holes you may find yourself in.
You’ve probably heard the old saying, “You have to have money to make money.” Good credit histories are rewarded; you generally need accounts in your name that report to the credit bureaus to build a history. That creates a catch: people need credit to prove they can manage credit, while those shut out of affordable borrowing have fewer ways to demonstrate it.
You don’t necessarily need a credit card to build a score. You could open a bank account with a local credit union and talk with a financial advisor there. They are usually very kind and excited to share the products they offer. You might be able to apply for a credit-builder loan or a small secured loan. Be sure the account reports to the credit bureaus first.
If you decide to open a line of credit, ask about secured lines. Some cost money to open. Think of it as your ante: you put $99 in, and they give you a $200 credit line. It shows them you have some skin in the game, with a small amount to borrow as a test of whether you can manage it properly.
Start with one and see how you do. Department store credit cards are typically one of the worst ways to build credit because of their high interest rates. Don’t open a bunch of accounts at once; those hard credit pulls can backfire and lower your score. Just take it slow.
The most important part is to use the card for one small purchase, pay the statement balance in full each month, and set reminders or autopay. I set mine to pay at least seven days before its due date to leave no room for error. Don’t use this as a spending spree. It is a test. One that you can easily pass.
Keep card balances low compared with their limits. This is called credit utilization. Under 30% is a common guideline, and a small reported balance, or no balance, is often better than using most of your limit. You don’t need to carry debt or pay interest to build credit; you need available credit. The more available credit you have, the better you look on paper.
Time helps too. Longer account histories support a score, so keep older non-fee accounts open if they’re manageable, while considering fees, fraud risk, and your ability to use them safely.
Where people get stuck is by picking “credit-building” offers where you buy now and pay later, often with high interest rates. Read the terms, check whether payments are reported, and don’t take on a product you don’t understand. There is no rush. Learn to check credit reports for errors and appeal any disputes.
Now, this part really feels like a punch to the gut when it first happens. A score can fall faster than it rises because one serious negative event can outweigh months of good behavior. A late payment, high card balance, collection, or new credit application can quickly affect your score. Some people, like myself, learn the hard way that if your balances remain high, your limit may be reduced. You may think you have a $12,000 limit, but if you keep a $9,000 balance for too long, they may lower your limit to $9,000, making it look like you’ve maxed out your card. Try to pay that balance down as quickly as possible. The good news is that a drop in score isn’t permanent, and recovery is possible. Best not to get yourself there in the first place, of course.
Having credit is great in an emergency, and really, that’s what it should be for. It’s important to build financial stability as a baseline. As dull as it sounds, track your spending. You can use a journal, a notes app, a dedicated app, or a budgeting tool your bank offers. You’ll also want to save some money, even a small amount regularly. Some apps let you invest a little cash each week automatically; look for accounts that offer a high interest rate on your savings.
Your independence is a huge responsibility and equally a great accomplishment. Stay above water, and do not cosign for someone else or let anyone use your account unless you understand the risks; their missed payments or debt can affect you too. It’s okay to say no if someone asks you to help establish their credit. Give them tips to do it themselves or encourage them to reach out to an older, more established mentor.
Without going into a diatribe about how screwed up our financial system is (and to save my editor a word-count headache), I’ll say this: credit scores matter because institutions use them to determine access and affordability. Depending on local law, landlords, lenders, insurers, and sometimes employers may use credit information to assess risk. A stronger score can mean better rates and easier approval; a weaker one can make essentials like housing and transportation more expensive. People with savings can absorb emergencies, while those living paycheck to paycheck may have to borrow for the same car repair or medical bill and pay extra in interest and fees.
Credit can bridge the gap and help someone get to work and keep earning, but high interest and minimum payments can turn that bridge into a trap. Used responsibly, credit can open doors, but a good score can’t replace savings, affordable healthcare, reliable transportation, or a living wage. You can manage money carefully and still be one unexpected expense away from financial trouble; that doesn’t prove irresponsibility.
No matter who you are, how hard you work, or what your character is, people face hardships. A credit score is a tool, not a measure of your worth; it estimates how likely you are to repay borrowed money based on your credit reports. If you find yourself in trouble, learn this early: there is nothing wrong with asking for help. The worst you can hear is “no,” and you can always ask someone else. Everyone has had to ask for help at some point, and many heard no before they heard yes.
It can feel slow because you’re just a babe in the woods right now. With diligent effort, you will be rewarded as a trustworthy financier. Stay on track, and positive information will accumulate. You’ll be buying property or traveling the world using mileage points in no time!
Do you have a question? Send it to jdaarde@gmail.com.
