Credit scores are the financial equivalent of flossing: boring, kind of annoying, but essential if you want things to go smoothly later. Whether you’re eyeing your first apartment, financing a new pair of studio headphones, or planning for bigger moves down the line, your credit score is quietly pulling strings in the background.
This is why, if you’re in your twenties, it’s time to nurture a few habits that’ll carry a lot of weight down the line. Today, let’s have a look at a few smart, consistent habits that are highly recommended by financial specialists.
Start Building Credit Early
The easiest way to start building credit is with a credit card. But make sure to use it responsibly. In fact, think of it as a debit card that just happens to report to credit bureaus.
If you’re new to credit, consider beginner-friendly options such as student credit cards or secured cards, which require a refundable deposit and are designed to help you demonstrate your trustworthiness.
The golden rule here is to pay your balance in full, on time, every time. Not doing so racks up interest and sends your score into a nosedive. In doing so, you prove your reliability and boost your self-confidence.
Also, watch your credit utilization — that’s how much of your credit limit you’re using. Keep it under 30%, ideally under 10%. If you have a $1,000 limit, try not to carry more than $300 at any given time.
Automate Everything
Life’s busy. You’re working, streaming, collecting records, maybe even remembering to feed your plants. The last thing you need is to forget a credit card due date.
Set up autopay for at least the minimum payment on every card. This protects you from late fees and ensures you’re building a solid payment history — which, by the way, makes up 35% of your credit score.
Take it a step further by using budgeting tools like YNAB, Mint, or your bank’s mobile app to keep track of due dates and spending habits.
Got Bad Credit? It’s Not the End of the World
Maybe you missed a few payments. Maybe you maxed out a card (or three). Don’t sweat it — bad credit isn’t a life sentence. Still, you should reflect on your actions and understand the decisions that got you here in the first place.
Start with a credit report check. Review it carefully and look for mistakes, outdated information, or accounts that don’t belong to you. Dispute anything suspicious and make a note of every questionable purchase you’ve made.
Next, rebuild. There are bad credit credit cards designed specifically for individuals who find themselves in a financial bind. Learn to manage your finances and keep close track of your payments and expenses.
Recovery takes time, but your score will bounce back, especially if you start early.
Don’t Ghost Old Accounts
Ghosting is not cool, whether it happens in your dating or financial life.
However, it is also important to note that the length of your credit history plays a significant role in your financial wellness. Closing old accounts can actually hurt your score by shortening your average credit age and reducing your available credit (which increases your utilization).
Still, you shouldn’t keep any accounts or cards that charge high fees or tempt you into reckless spending. But that no-annual-fee card you barely use? Let it live. Buy a coffee on it now and then to keep it active.
Wrap Up
The secret to building healthy credit in your twenties is about being consistent. A few smart choices now can unlock serious opportunities down the line. So yeah, credit might not be as exciting as your next Marvel binge or that limited-run vinyl pressing, but it is a powerful tool.
