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Kevin O'Leary Says Young Adults Don't Need to Spend Thousands to Build Credit: ‘Any Small Amount Works’
“Shark Tank” investor Kevin O’Leary shared a simple credit-building strategy for young adults, advising them to use one credit card for small monthly purchases and pay off the balance on time rather than spending thousands of dollars.
O’Leary’s $50 Credit Card Strategy
On Saturday, in a post on X, O’Leary encouraged young adults to get a credit card, spend a small amount each month and consistently repay the balance.
“Make sure you pay it off on time every month. Any small amount works. The fact that you pay it off gets you a higher score immediately,” he wrote.
In the accompanying clip, O’Leary explained that people could build their credit by spending approximately $50 a month on a single credit card.
“You don’t need to spend any more than that,” he said, emphasizing that consistently paying off the balance was more important than how much someone spent.
“The algorithms that look at you increase your credit score regardless of how much you’re paying off,” O’Leary said.
He also encouraged young adults to start building credit as soon as they graduate from college.
“Right out of college, get a card,” he advised, adding, “Don’t abuse it. Pay it off every month.”
O’Leary described the strategy as a financial “hack,” reiterating that “any small amount works.”
Experts Warn Against Spending Habits
Earlier this year, entrepreneur Mark Tilbury recommended his “25/50/15/10 rule” for managing income and expenses, paying off high-interest debt, increasing earnings and investing consistently in the S&P 500 to build long-term wealth.
Previously, O’Leary warned that everyday expenses, such as buying $18 lunches instead of making $2 sandwiches at home, could quietly drain savings and urged Americans to redirect those savings toward investments and debt repayment.
In 2014, Billionaire investor Mark Cuban advised people to pay off credit card balances and stop using credit cards, arguing that eliminating debt carrying 15% to 20% interest delivered the equivalent of a guaranteed return.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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