Building credit in and out of college

As September rolls around, many students are heading off to college while recent graduates are either looking for jobs or secure in the workforce. Whatever an individual case may be, young people are using credit, while many may not know exactly what the risks of doing so are.

To avoid kicking their consumer career off with bad credit, students who are in college or just out of school should know a few facts about working with credit. Every missed payment hurts their score, and a default could damage their credit for a decade – affecting their ability in the future to get mortgages, car loans and more.

Thanks to new restrictions instituted by the CARD Act, credit card companies can no longer target young consumers by offering gifts or other promotions. And for students under 21, they’ll need to demonstrate a way to repay any debts that they rack up.

Another option is to co-sign for a credit card with a parent. But adults should be careful- doing so puts their own credit history on the line if the child runs up a big bill or defaults.ADNFCR-3500-ID-19934706-ADNFCR