, to weigh in on all things credit cards. You've probably seen Vivian on your TikTok FYP, offering quick tips on everything from crypto to inflation to getting the best deals at Target. The ex-Wall Street trader gave us some A+ advice on boosting your credit score, as well as telling us about the biggest money mistake she made as a teen.
It is considered best practice to always pay off your full card balance, but credit card companies won't force you to pay the entire balance every single month. Most credit cards have a monthly minimum payment, which will either be a set dollar amount or a percentage of your existing balance, that they require you to pay to keep your credit card in good standing. However, you'll have to pay interest on the dollar amount that carries over to the next month.
Earning rewards on everyday or frequent purchases can help stretch your dollar further. The 2% cash back you could earn while paying for gas, rent, or textbooks will add up over time. Credit cards help you build your credit score, an important tool to help set you up for future financial success.Your credit score is a grade of your"creditworthiness" — essentially, how likely you are to pay back the money you borrowed on time. Your score is based factors like on how many months you paid your credit card off on time, how much you spent on your credit card, how long you've had your credit card for, and how many types of credit you have.
Your credit score will also determine which type of credit card you can get as a teen. Even though you probably haven't started building up credit yet, there are first time credit cards that you can still qualify for so you can start building a credit history.