Do you remember what you were told about credit the first time you heard about it?

I do.

“Don’t max out your cards.”
“Always pay on time.”
“Debt is dangerous.”

Honestly, I believed all of that.

When I got my first credit card, I treated it like fire. Keep it locked up. Didn’t touch it unless absolutely necessary. I actually ended up getting my one of my credit cards cancelled due to the lack of usage (big mistake!). I thought the point was just to keep my score clean for the day I’d need a car loan or mortgage.

But here’s the thing: that’s only step one.
Building your credit score early is about proving you can play the game.
Step two is about actually using it — learning how to turn credit into fuel for your projects.

Because the truth is, credit isn’t just a safety rating. It’s leverage. And if you understand how to use it, it’s one of the fastest ways to bring your ideas to life.

But FIRST

If you are new, welcome to OCE’s weekly newsletter curated for the ambitious youth…here are some articles you missed from previous weeks:

📈

Why No One Successful Wants to Mentor You

Best tools for building your passion project

The Future Belongs to Borderless Thinkers

Debt Isn’t Always the Enemy

We were taught debt is bad, dangerous, irresponsible. But like fire, it depends on how you use it.

Light a candle? Good.
Burn down your house? Not so good.

When managed well, debt becomes a lever — one that lets you build bigger and faster than your cash alone would allow. In fact, it’s almost always better to use other people’s money (OPM) than to drain your own savings. Why? Because you keep your personal cash cushion safe while letting credit fuel your growth. That way, you’re not waiting years to save every dollar before you can move forward.

This is what we mean when we say “good debt.”
Good debt = borrowing to create more value than you owe back.

Example: You borrow $1,000 at 0% interest to buy a camera for your YouTube channel. That camera helps you land freelance gigs that bring in $2,500. You come out ahead.

That’s good debt.

Funding Options Teens Should Know About

So now that we see how good debt can be a lever, let’s talk about how to actually get the money to fuel your project. There are several routes — some free, some borrowed — but all can help you move faster than relying on savings alone.

0% Intro APR Business Credit Cards

This is the route I took to start my business. Some business credit cards offer 0% APR for 6–12 months. Translation: you can borrow and pay no interest if you can clear the balance before the promo ends.

Here's a peek into my game plan in building up my credit in order to tap into this funding option:

Want full break down of my credit building strategy? Check out this

Bonus points for teens thinking ahead:

Higher limits than personal cards.
Higher utilization (how much of your available credit you’re using) won’t hurt your personal credit score — most business cards only report late payments, not balances.
Responsible use helps you build business credit history, which opens the door to bigger funding options like lines of credit and loans.

Danger? Miss payments, and rates can jump sky-high.

Line of Credit (LOC)

Think of a LOC as a cash tap: approved up to a certain limit, but you only pay interest on what you borrow.

Why it’s useful for teens starting a project:

Flexible for cash flow — borrow when you need it, pay when you can.
Often cheaper than credit cards (APR usually lower).
Builds business credit history separate from personal credit.
Relationship matters — the more your bank knows and trusts your business, the better rates and higher limits you can get.

Imagine you want to start a small custom T-shirt business. You get approved for a $5,000 business LOC at 12% APR. At first, the bank gives you a modest limit and standard rate.

Instead of maxing it out recklessly, you:

Borrow only what you need ($2,000) to buy materials.
Pay it back on time.
Keep detailed records of your sales and cash flow.

After a few months, your bank sees you’re responsible. They increase your credit limit to $10,000 and lower your APR to 9%.

Now you can invest in bigger orders, launch marketing campaigns, and scale your business — all while paying less interest than when you started.

Moral: the better your relationship with your bank, the cheaper and easier it becomes to borrow.

Crowdfunding

Kickstarter, Indiegogo, GoFundMe — you’ve seen them.

Great for projects with a story or product people get excited about.

Instead of borrowing, you rally people to back you upfront.

Cost: Most platforms take 5–10% of the funds you raise, plus payment processing fees around 3–5%. That means if you raise $1,000, you might only pocket $850–$920 after fees.

Tip for teens: Make your campaign super clear and visual. Tell a story, show prototypes or sketches, and explain exactly how backers’ money will make the project real. The more people can see your progress and vision, the more likely they are to back you — and the more money you keep in your pocket after fees.

Why All This Matters

Funding is fuel. But fuel can explode if you don’t respect it.

The key is using other people’s money to build something that pays itself back.

Good debt feels like this:

Borrow $5,000 to build a product.
Product earns $7,500.
Pay off the $5,000 and pocket $2,500.

Bad debt feels like this:

Borrow $5,000 to “look” successful.
The shiny stuff doesn’t earn a dime.
Now you’re stuck paying it back with interest.

See the difference?

Bottom Line

Debt is not evil. It’s a tool.
It exist to help you start things you otherwise couldn’t.

But the rule never changes: make sure the money you borrow builds something that earns more than it costs.

That’s how you go from just having an idea… to having a funded, growing project.

Like what you read? Share with friends!

PS. This summer, we are going to tackle pressing global issues and drive innovation in regions (such as your own community) where it is needed the most. Want in?

We run a summer cohort for ambitious youth (high school and undergrads) to work directly with world-class founders while learning from Silicon Valley leaders.

OCE Summer Cohort

You can also explore purposeful opportunities through our Impact Internship Opportunities Database.

Get Curious.

Lena

https://www.openclassroomexperience.com/