5 Credit Card Tips for Young Adults

Written by  //  2014/06/02  //  Academics  //  Comments Off on 5 Credit Card Tips for Young Adults

Having a credit card is a great way to build your credit score, enjoy great rewards and have money on hand for emergencies, but they can be dangerous. Many young adults find themselves in bad financial situations because of credit cards, so remember these five tips to prevent yourself from getting in financial trouble.

Don’t Get in Over Your Head

It can be easy to get in over your head when it comes to applying for credit cards, but avoid this at all costs. Having too many credit cards can make it far too tempting to get in too much debt, and too many credit inquiries can cause your score to drop dramatically. Start out with just one or maybe two cards, and avoid getting any more until you know that you can handle them responsibly.

Only Choose the Best Cards

There are so many cards out there that you might be tempted to apply for, but you should be picky. Look for cards with low interest rates, and select one that is best for your personal situation. For example, some of them offer cash back, which can be a great incentive when you use your card responsibly.

Pay in Full

It is essential to pay your credit card off in full each month. Otherwise, you could wind up paying astronomical interest rates, and you could get in too deep. If you aren’t able to pay off your card in full at the end of the month, pay as much as you can, and avoid using your card again until you get your balance down to zero.

Don’t Co-Sign

If you’ve been using your credit cards responsibly, you have probably established a bit of a positive credit rating. Your friends might ask you to co-sign with them on credit cards and other lines of credits, but you should avoid this at all costs. Just because you love your friends doesn’t mean that you can trust them to be financially responsible, and you’ll be stuck with their debts if they don’t pay up.

Think About Emergencies

One of the best things about a credit card is the fact that it can help ensure that you have necessary funds in the event of an emergency. Therefore, you should always keep enough leeway on your credit cards that you can use them for this purpose. Although you might be tempted to max out your cards on clothes or electronics, you’ll regret it if your car breaks down the next day.

These five tips are simple and straightforward, but they can make a big difference in your life if you follow them. The last thing you would want to do at a young age is file for bankruptcy as that can have adverse negative effects on your credit for years to come. With these tips you can be sure to enjoy financial freedom. Then, you can enjoy the benefits of using credit cards without getting yourself in too much trouble.

Meghan Belnap –
Meghan Belnap is a freelance writer who enjoys spending time with her family. She also enjoys being in the outdoors and exploring new opportunities whenever they arise as well as researching new topics to expand her horizons. You can often find her buried in a good book or out looking for an adventure. Meghan recommends visiting professionals like those at Exelby & Partners Ltd to help you with debt counseling if you are in a financial bind.

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