Credit and Young Adults

The credit landscape has changed but the journey is still the same; understanding how to use credit responsibly is the path to success. Here are a few pointers for young people seeking credit.

Know the power of credit.  Creditors look at your credit history as an indication of your future financial behavior.  Using credit wisely builds a good credit history. 

Read the fine print.  Read your application carefully before signing -- it's a legally binding contract. Credit card companies are very competitive so interest rates, credit limits, grace periods, annual fees, terms and conditions may vary.

Pay at least the minimum due on time.  This will help you avoid late fees and a rising annual percentage rate (APR).  To reduce your balance quicker, pay more than the minimum due.

Did you know? Starting in February 2010, consumers aged 18-21 will need a parent cosigner or proof of independent income to receive a credit card. Young adults who already have a credit card won't be affected by the new rule.  Visit the Get Smart About Credit Web site for more information.

Questions? Contact Marquita Powell