Graduating from college or high school and moving into the real world can be an unnerving experience for graduates. For many, it’s the first time they’ll need to have a credit card of their own. Unfortunately, many graduates don’t know the right ways to handle credit cards in order to ensure a solid credit history for themselves as they move into the future.
This new article from U.S. News assures this year’s graduates that using credit cards is easier than they might imagine, outlining four simple lessons every graduate should know about how to handle credit.
For example, it’s important to have a good feel for exactly what you spend in a given month, so budgeting and tracking are the keys.
First, write down how much money you take in each month. Next, take a week or two and write down everything you spend money on. Combine that day-to-day spending with other regular bills, such as student loan payments or rent, to complete your spending picture.
Once you have all that information gathered, prioritize your spending in order to create a budget that allows you to put the most money toward your debt each month. See what you can live without – cable, fast food, concerts – in the name of debt reduction.
The key to success with any credit card is to make sure you pay your balance off each month, on-time and in full. If you don’t, high interest rates will kick in and the math will work against you very quickly.
