Of course, here is a comprehensive summary of the article in 2-4 paragraphs.
Financial educator Tori Dunlap, host of the „Financial Feminist” podcast, alongside Credit Karma’s Courtney Alev, is providing crucial guidance to Gen Z on building a strong credit foundation. They emphasize that while the process can seem confusing initially, establishing credit is the backbone of one’s financial life. The experts demystify credit cards by framing them as tools—specifically compared to knives—that can either build up or damage a credit score depending on how they are used. The most fundamental rule, shared by many, is to always make payments on time and pay the balance in full whenever possible to avoid interest and negative marks.
Beyond timely payments, the article outlines several strategic steps for beginners to make a significant impact on their credit score. Courtney Alev recommends starting by putting small, recurring charges like Netflix or Spotify subscriptions on a new card instead of making large purchases. This approach builds a year of positive payment history with minimal risk. Furthermore, to manage the crucial factor of credit utilization (the amount of credit you use versus your limit), Alev suggests making payments weekly rather than monthly. This strategy prevents your utilization from appearing high on your statement date and helps avoid accumulating interest.
For those looking to optimize their score further, Tori Dunlap offers a powerful hack: proactively asking for a credit line increase and then exercising the willpower not to use the newly available funds. This effectively lowers your overall credit utilization ratio, as your spending represents a smaller percentage of your total available credit. Dunlap notes that while banks are often eager to grant these increases, the challenge for Gen Z—a generation acquiring debt at a faster rate than others—is resisting the temptation to spend the extra money. By combining these methods—managing small charges, paying weekly, and strategically increasing credit limits—young adults can responsibly build a solid credit history that will benefit them when applying for loans, apartments, and better financial products.
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Forrás: https://www.businessinsider.com/hacks-for-getting-first-credit-card-improve-finances-2025-10.