College + first credit card = ???
It can be scary – to be 18 with your first taste of independence and the newfound freedom to spend money you don’t even have yet.
Well, maybe not so scary if that’s all there was to it, but scary when you know that failing to pay back those first credit card bills on time and in full can thwart your future efforts to rent your own place or qualify for the loan you need to kickstart your dream business or limit you from living your life post-grad on your own terms.
A full quarter of millennials say building a great credit score would be the scariest milestone to take on at the moment in Capital One’s Platinum MasterCard Credit confidence survey.
They know what’s at stake, with a full 48 percent recognizing that establishing good credit is the most important reason for having a credit card. But knowing that credit is important isn’t enough – millennials also have to know how to go about building their credit and how to use it wisely – avoiding the trap of common credit myths and mistakes.
I hit the streets of New York to get a live look behind the numbers and hear more of what millennials had to say about their first credit card – what they know, what they don’t and the hard lessons learned…
(Check out more millennial money talk by SUBSCRIBING on YouTube)
Credit mishaps and myths aren’t limited to millennials. Making the most of your first credit card is often learned the hard way. Check out what these personal finance bloggers went through with their first credit cards….
While there is plenty of potential for irresponsible credit use, your first credit card can actually be one of your greatest financial tools – protecting you from fraudulent purchases, helping you build credit and even helping you budget – when used correctly.
So how do you use your first credit card correctly?
Follow these credit card basics:
By following these steps, you can avoid common credit mistakes, using your first credit card to your advantage – no scary mishaps required.
If you’re a seasoned credit user already, be sure to share your story below or in the comments on YouTube so that our new credit card users can and start their credit journeys with confidence!