What is the Average Age People First Start Using Credit?

Feb 26, 2021

At Life Designers, a prominent consulting and coaching firm focused on providing exceptional services in the field of business and consumer services, we often come across clients who want to understand the average age at which individuals begin using credit.

In today's world, credit plays a crucial role in our financial lives. Whether it's for purchasing a car, funding higher education, or buying a home, credit enables us to achieve our goals and aspirations. Understanding when people typically start using credit can provide valuable insights for better financial planning and decision making.

The Importance of Credit

Credit allows individuals to access funds upfront and repay them over time. However, it's essential to use credit responsibly and manage it wisely to avoid falling into debt. Establishing good credit habits early on is crucial for building a strong financial foundation.

Life Designers strongly emphasizes the need for financial literacy, and the utilization of credit forms a significant part of it. By educating our clients about the average age people start using credit, we equip them with the necessary knowledge to make informed decisions.

Factors Affecting the Average Age

The average age individuals start using credit can vary based on several factors, including cultural and socioeconomic factors, personal financial goals, and access to resources. Let's explore some of these factors in detail:

Cultural and Socioeconomic Factors

Cultural and socioeconomic factors can influence the average age at which people begin using credit. Some cultures prioritize financial independence and encourage young adults to establish credit early on, while others may discourage it for various reasons. Similarly, individuals from higher-income backgrounds tend to have more opportunities and resources to access credit.

Personal Financial Goals

Personal financial goals and aspirations also play a significant role in determining when individuals start using credit. Some individuals may choose to delay using credit until they have a clear understanding of their financial objectives and develop a solid plan to achieve them. Others may start using credit earlier based on their specific needs and circumstances.

Access to Resources

Access to financial resources, such as stable income and reliable credit options, can impact the average age people begin using credit. Individuals who have access to resources at an early stage of their lives may feel more confident and comfortable in utilizing credit.

Benefits of Starting Early

Starting to use credit at a younger age can offer several advantages. Here are a few benefits individuals may experience:

  • Building Credit History: Starting early helps establish a credit history, which is essential for future financial endeavors such as applying for loans or mortgages.
  • Learning Financial Responsibilities: By using credit responsibly, individuals can develop financial habits and learn about managing their finances effectively.
  • Access to Better Credit Options: A strong credit history can provide access to better credit options, lower interest rates, and higher credit limits.

Steps to Take when Starting to Use Credit

To ensure a positive credit journey, it's essential to take the following steps when starting to use credit:

  1. Educate Yourself: Learn about credit, interest rates, and repayment terms to make informed decisions.
  2. Create a Budget: Understand your income and expenses to manage your credit effectively.
  3. Start Small: Begin by using credit for smaller purchases and gradually build your way up.
  4. Pay Bills on Time: Make all credit payments on time to maintain a good credit history.
  5. Monitor Your Credit: Regularly check your credit reports and credit scores to identify and address any discrepancies.


Understanding the average age people first start using credit is crucial for individuals seeking financial independence and responsible credit utilization. At Life Designers, we specialize in providing consulting and coaching services to assist our clients in making informed decisions related to their business and consumer needs.

By equipping individuals with valuable knowledge and guidance, Life Designers strives to empower them to achieve their financial goals and create a secure future. If you're looking for reliable consulting and analytical services in the field of business and consumer services, contact Life Designers today for personalized assistance!