We hear it all the time. “I can’t start building credit! I don’t have a job yet.” Or “I don’t need worry about building credit until I graduate and have a steady income.” There’s a lot of misinformation out there when it comes to personal finance, but the idea that you can’t build credit until you have a job probably takes the cake. There is absolutely no reason why you shouldn’t start building credit as soon as possible. Let’s take a closer look at where this myth comes from and why it’s so harmful.
First of all, everyone spends money. Whether it’s a lot or a little, your own or from your parents, with card or cash, it’s virtually impossible to move through the world (especially as a young adult at college) without spending money here and there. So even if you’re frugal and living within your means, you’re spending money - so why not build your credit score with that spending?
There’s a simple reason why the myth to wait until you have a job to start building credit is so widespread: before Fizz, it was way too easy to get screwed over while trying to build credit without a steady income. Credit card companies used to prey on college students, advertising credit cards as access to free money - and hiding the fact that normal credit cards can saddle you with high-interest debt and fees while encouraging you to overspend.
The reality is that if you wait to start building credit, you’re setting yourself up for failure. You need credit history if you want to get approved for apartment rentals, qualify for car and home loans, and even get certain jobs. Building credit takes time, so if you wait until you need credit to start building credit, you’ve already waited too long.
How Fizz helps
If you haven’t started building credit yet, you probably use your normal bank-issued debit card or cash when you spend money. It’s easy, responsible, and isn’t going to hurt you. Lucky for you, Fizz isn’t going to hurt you either.
With Fizz, you can spend money the exact same way you always have. You won’t have to worry about going into debt like you would with a normal credit card. You won’t have to worry about overspending or building up big balances. You won’t have to pay extra fees to build your credit. Instead, you can build credit by spending money the same exact way you always have. Plus, since Fizz doesn’t check your credit, you won’t have to worry about getting denied for a card or having a hard pull on your credit report.
A big part of why many people hesitate to start building credit when they’re younger is because they worry about debt and overspending. With a Fizz card, you simply won’t have to worry about any of the pitfalls of a traditional credit card. You can spend the money you normally do, all while building credit - and even earning cash back rewards along the way.
The bottom line
It’s not just that you don’t need to wait until you have a job to start building credit. You actually shouldn’t wait until you have a job to start building credit. A good credit score is an important building block when it comes to creating good financial habits. If you wait too long to start building credit, you can end up paying thousands of extra dollars for apartments, cars, houses, and other loans over the course of your life. So don’t wait. Get a Fizz card and start building your credit today. You’ll be happy you did!
Sam is a Kenyon College alum and is head of content at Fizz. He's been a go to personal finance resource among his peers since getting his first credit card during his sophomore year of college. He hails from Washington, DC, loves all things aviation, and currently lives in Los Angeles.