A shaky job market and student loan debt could send new grads to credit cards to finance the first steps of their adult financial lives. But the wrong decisions now could haunt them later.
For many members of the Class of 2012, the dream job and the dream salary won't come right away and some may turn to credit to bridge financial gaps.
Credit standing can impact everything from apartment leases to car loans and, in some cases, job applications. Beverly Harzog of credit.com said getting off to a solid start can be really simple.
"When it comes to credit, the most important thing when you're starting out is, yes it's fine to get a credit card because it is important to build a good credit history, but pay that balance off every month. You really have to do that," Harzog said.
Young people can find themselves with a lot of offers for their first credit cards. Harzog said to not be flattered. Millions of others will get the same offers too.
"Don't fall for the hype. Take a deep breath, and read the offers very carefully. Read the fine print. And don't get a card unless you absolutely do need one," she said.
Key points in the fine print include the credit card's interest rate and any fees, especially those that might be attached to a rewards card.
And learning doesn't stop at graduation. Young people should ask for help on the topics that will define their financial lives like credit, savings and investing.
Courtesy: (On Twitter): @karincaifaCNN
Copyright 2012 CNN Consumer Watch. All rights reserved.
