There is a lot to be said for having a decent credit score when you are living on your own. Most kids out of college, however, have not established any type of credit history. For most of them a job of out college will be their very first signs of income.
Anyone that is trying to create a path to wealth should stay away from the credit cards if they cannot pay these cards in full on a monthly basis. This is usually the mistake that many college students make. They find themselves looking for jobs after college and they don’t know how they are going to get their finances in order. The worst thing that the student can do is make things worse if they are not using the credit cards responsibly.
Credit cards are not bad overall, but students have to be mature enough to utilize these cards in the right way. That is usually the problem with recent college graduates. They may not have jobs and they may find themselves looking for anything that can allow them to live a carefree life until the job comes.
The problem is that they may not have any desire to pay the full amount on the card. When they start making minimum payments they will see that they are on the route to maxing out a credit card. Anytime a person is making payments that are less than what they’re actually spending they are setting themselves up for failure. The interest rate will climb on these purchases, and people will find themselves in a place where the card has a balance that is too big to pay. It is a much better idea to simply pay the full amount. That is why maintaining the credit score than become so valuable.