College graduation is a great time to start building credit, but if young people aren’t careful, they’ll get caught taking the wrong advice.
College campuses are still crawling with credit card marketing campaigns, despite regulations set by the Credit CARD Act that were designed to limit the practice, according to a study from the University of Houston Law Center. The study found that students are still getting tons of offers in the mail and card companies are even accepting student loans as a source of income. On top of that, 40% of the students surveyed said they saw bank representatives handing out gifts when applications were completed. This Time Moneyland story digs into how some of the credit card issuers are advising students.
Card Hub recently identified the best credit cards available to high school and college graduates, based on a variety of criteria. Young people need to make sure they get off to the right start when it comes to building credit, and Clark would tell you your number one priority when it comes to credit building is paying your bills in full at the end of every month. Also, make sure you’re using less than 30% of your total available credit. Sticking to these guidelines will help you create a credit history that will give you the best financial opportunities in the future.