If you are under 21, you cannot get a credit card unless you can demonstrate you possess an independent means of repaying balances (such as a job) or have an adult co-sign for you.
What should you do once that card is in your hand? While having credit is needed to have a good score, careless use will only hurt your score and cost you money. Before using your card, think about if what you are purchasing is necessary and affordable. Continually charging more than you pay each month only leads to increasing minimum payments and, potentially, interest costs. If you financed college with student loans, you will also have to eventually start making student loan payments (on top of rent, a car loan, credit card debt, or whatever other expenses you may have), and people often over-estimate their expected first job earnings.
It is important to make your payments on time each month. If you make your payments late, not only will you possibly incur late fees and a higher APR, but your credit score (and your co-signer’s, if you have one) could be damaged as well if the payments are late by 30 days or more. Set aside a specific time each month to pay your bills. Another good idea is to set up payments online. This way, you do not have to worry about your payment getting lost or delayed in the mail. If you decide to pay by mail, leave plenty of time for the creditor to receive the money before the due date. Try to avoid paying the bill last minute – many creditors can charge a fee for using an “expedited service” by a service representative of the creditor.
When you are thirty, you probably do not want to still be paying for purchases you made when you were twenty. If you do not manage your cards responsibly, the costs of meals out with friends, movies, and whatever else you bought on your cards will hang around long after the fun is gone. Graduating college and starting your adult life is an exciting time – avoid letting it be saddled by credit card debt.
