Should I Get a Credit Card?

It depends.

You should consider getting a credit card if you can pay it off in full every month, want to build credit, and need a card for things like online shopping, travel bookings, or deposits.

If you think you might carry a balance, miss payments, or overspend, it may be better to wait.

A Simple Option If You’re Not Ready: KOHO Essential

If you want card convenience without borrowing money, KOHO Essential can be a great alternative because it is a prepaid Mastercard®.

• It has a low monthly plan fee that can be waived when you set up direct deposit or add +$1,000.

• Use a prepaid Mastercard® for groceries, bills, subscriptions, and travel.

• Grow your savings with a 2% interest savings rate on your entire balance.

• Earn 1% cash back on groceries, eating & drinking, and transportation.

• You can subscribe to Credit Building for $10/month, it's an affordable way to build your credit history.

• Enjoy unlimited transactions and free e-transfers (never worry about fees when sending money to someone again).

Reasons a Credit Card Can Be a Good Idea

A credit card can help if you:

• Want to build a credit history (when you pay on time)

• Need a card for hotel deposits, car rentals, or travel bookings

• Want purchase protection or travel insurance (depends on the card)

• Can handle it responsibly without carrying debt

Reasons You Might Not Want a Credit Card Right Now

A credit card may not be the best choice if:

• You are already struggling with debt

• You often spend more than you planned

• You might miss payments

• You think you will carry a balance (interest can get expensive fast)

If You Do Get a Credit Card, Do This to Stay Safe

Simple rules that keep most people out of trouble:

• Pay the full balance each month (not just the minimum)

• Keep your spending low compared to your limit

• Turn on payment reminders or auto-pay

• Do not use cash advances

• Only apply for cards you actually need