Whether you're heading to college, starting your first job, or simply learning how to manage money on your own, understanding credit is one of the most valuable financial skills you can develop. Many young adults don't think about credit until they need a car loan, apartment, or mortgage. By then, it's easy to wish you'd started building healthy credit habits sooner. The good news? A little knowledge now can make a big difference later. Here's a few things we wish everyone knew at 18.

Opening Your First Credit Card
For many young adults, a credit card is the first step toward building a credit history. Used wisely, it can help establish a strong financial foundation. When choosing your first credit card:

• Look for a card with low or no annual fees. Annual fees can add unnecessary costs when you're just getting started. A card with fewer fees allows you to build credit without paying simply to keep the account open.
• Understand the interest rate and terms. If you carry a balance from month to month, interest charges can add up quickly. Knowing how the card works can help you avoid unexpected fees and make informed borrowing decisions.
• Use the card for purchases you can already afford. Treating your credit card like a debit card helps prevent debt from accumulating. Charging only what you can comfortably repay keeps your finances manageable and demonstrates responsible credit use.
• Pay the balance in full whenever possible. Paying your balance in full helps you avoid interest charges and keeps your credit utilization low. It also establishes a positive payment history, which is one of the most important factors in building strong credit.

The goal of a first credit card isn't to borrow more money. It's to establish a record of responsible financial behavior that can benefit you when applying for future loans, renting an apartment, or reaching other financial milestones.

Credit Confidence Starts with Knowledge
Building strong credit isn't about being perfect. It's about making informed decisions and developing responsible habits over time. The earlier you understand how credit works, the more prepared you'll be for life's major milestones, whether that's renting your first apartment, financing a vehicle, purchasing a home, or starting a business.

Take a few minutes today to learn more about your credit and begin building the financial confidence that can benefit you for years to come. Have questions about credit or borrowing? Stop by your local BankWest location and visit with one of our friendly team members. We're here to help you navigate your financial journey with confidence.