Avoid These Common Credit Card Mistakes

Yay for adulthood! So many more privileges. And responsibilities. Have you ever noticed how often those two go hand-in-hand? As a young adult you will be inundated with offers of “free” credit. But remember what your mother told you, “Nothing ever comes for free.” Credit cards are a necessity in this day and age (especially if you ever want to rent a car), but they also come with some common (and easily avoided) pitfalls that can adversely affect you for years. Here are some tips from HuffPo on how to keep yourself safe.

New Graduate Mistake #2: Skipping the credit card. While some graduates melt their credit cards from overuse, others go the opposite direction and avoid credit cards like the plague — afraid that they will take on a bad credit habit. However, credit cards are extremely useful (for airline tickets, car rentals, and online purchases). Plus, good credit card habits can build good credit history, which can lead to higher credit scores. So get that credit card and use it regularly… But use it wisely!

New Graduate Mistake #3: Moving around a lot. For many students, college is a transient time — you’re living at home during the summer and at school during the semester, and you might have a different address every school year. It’s perfectly understandable in college but this transience can carry over to graduates as well, and they may end up at their parent’s home, staying at a friend’s house, and renting here or there, depending on the job. However, make sure your mail follows you. You do not want to miss a bill and get a late payment on your credit report. Confirm all your accounts have your new address.

Want the rest of the great suggestions? Follow the link above to learn more ways to save yourself from a credit card catastrophe.