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Learning to use a credit card responsibly is a crash course in adulting. You have to manage your credit limit and resist the temptation to spend more than you can pay back. And you have to balance the value of rewards against the cost of using the card. It's a lot to take in, but using credit can give you the peace of mind of knowing that you could cover a big, sudden expense if you had to. Best Cards To Build Credit Start small and use your network. If your parents are willing to co-sign, you might piggyback on one of their cards just until you get the hang of it. Or do a search for student credit cards, which tend to be easier to qualify for. Secured credit cards require you to put down a deposit, usually between $200 and $500, but you can get one even if you have no credit or poor credit. Show good behavior on a secured card by paying off your balance on time each month and keeping your usage steady, but low, and you likely will see your credit score raise quickly. Pr...

Your perfect credit limit depends on your circumstances. Sometimes you might want a lower limit to help you manage your own spending urges. In other cases, raising your credit limit can make you look (and feel) like a high roller - as long as you don't actually spend more than you can pay back. So, how do you use credit limit responsibly? Know Your Credit Utilization Ratio Your credit limit is part of a bigger picture called your credit utilization ratio. It might sound scary, but it's pretty simple: How much credit do you have available and how much are you using? Gather all of your credit card accounts (get out your statements or, if you want an extra gold star, pull your credit report). Look only at revolving debt accounts, like credit cards, where the balance rolls over each billing cycle, and you decide how much to pay. This is different from installment debt, like your car loan, where you pay the same amount each month. Step 1: Add up your credit limits. This i...

Just like your LinkedIn profile, people are looking at your credit. Some of them want a quick way to judge whether or not you are responsible. Others want to know if you'll pay them back if they lend you money. Lenders And Credit Card Companies If you have poor credit, you could get interest rates nearly 60% higher than the national average because lenders see you as bigger risk. Insurance What does a low credit score have to do with your driving abilities? Insurance industry research has shown that those who manage money responsibly are more responsible in other parts of their lives. If you need auto, renters or homeowners insurance, insurers will look at your credit score. And a low score could mean you'll pay up to $22,815 higher premiums over your lifetime than someone with a stellar score. Utility Companies Part of getting your own place is paying for utilities like gas and electricity - and utility companies want to make sure you're good for it. "S...

Plastic isn't the only way to sink your credit score. Credit comes in many shapes and sizes, and sometimes it hides behind clever marketing. You might use one of the following services because it's convenient, or because it solves an immediate problem, but these hidden credit monsters can haunt your credit report if you aren't careful. Read on to learn more about what affects credit that you may not have considered. Cash Advances Who hasn't felt a twinge of excitement looking at those blank checks sent by their credit card company? They have your name printed on them and everything. It would be so easy to tear off one of those bad boys and spend to your heart's desire. But even though it looks like a check, a cash advance from your credit card company is the same as charging it to your card - and actually worse, because most cash advances come with higher interest rates, fees and other hidden charges. You may not realize until after you've dropped your cr...

Your credit score is your first impression. It's that first photo you feature on your profile, where you want to look your best. A good credit score (FICO 700 or higher) shows that you might be relationship material. Now, how exactly is that credit score calculated? Payment History (35% Of Your Credit Score) Tracks if you've paid your bills on time for 7 years, but the past 2 years are weighed more heavily. Kind of like looking at someone else's social profile. You don't overthink their 2010 activities, but you 100% judge them on what they posted last week. Bottom line: Pay on time, all the time. Amounts Owed (30% Of Your Credit Score) Shows how much you owe against how much credit you have available. Lenders like to see you using 25% of less of what you could borrow. So if you have a $10,000 credit line, don't owe more than $2,500. Bottom line: Don't max yourself out. Length Of Credit History (15% Of Your Credit Score) Would you date someone who...

Are you damaging your rep without even knowing it? Here are 4 ways you might be throwing shade at your credit score. Don't Apply For Too Much Credit You're in the checkout line and the cashier asks if you want to save 10% by applying for a store credit card. The discount-loving part of you is like, obviously, sign me up. But a store-branded card is still a credit card. "Each time you apply for credit, an inquiry shows up on your credit report and pulls your score down a little," says Will VanderToolen, director of counseling services at the AAA Fair Credit Foundation in Salt Lake City. Be especially careful about opening too many credit cards if you're about to apply for a big loan, such as a car loan or a mortgage. "Don't apply for credit that you don't need," says VanderToolen. "But also don't avoid getting a card at a store you frequent if the benefits will yield positive results over time." Don't Avoid Credit ...

Living paycheck to paycheck might seem unavoidable at the start of your career, but there are proactive steps you can take to make it work - and make it stop. The paycheck to paycheck cycle begins when your income and expenses are out of balance. What Is Living Paycheck To Paycheck  In its simplest definition, living paycheck to paycheck means having nothing left over in between pay periods. There are many reasons why this might happen: Your fixed expenses are too high for your income. If your rent, insurance, car payments, utilities, phone and other bills are too high, then you'll live paycheck to paycheck because your income is gone before you have the chance to save it. Add up all your income and expenses and see how they compare. If you're deciding whether to take a job with a low starting salary, create a mock budget. Would you be able to live comfortably on this income? (Don't forget to adjust for common payroll deductions, including taxes). Your othe...

It only takes one financial emergency to convince you of the importance of savings. It's recommended that everyone aim to save 3- to 6-months' worth of expenses, which might seem like an impossible target, but every achievement begins with setting a goal and taking the first steps toward reaching it. Why Save? Life is full of surprises - an accident, injury, illness, home repair, legal issue or even a fun opportunity such as an unexpected vacation, festival or concert are all good reasons to build up savings. With no money saved, your options are limited to earning the money or borrowing it, which usually means paying interest. Learning how to build a savings account makes you self-sufficient. You can stand on your own without relying on anyone else to bail you out. Smart Small Saving gets easier and more enjoyable the more you do it. At first, you might feel deprived if you have to trim expenses, but this feeling quickly subsides when you see your account balance rising...

The so-called Boomerang Generation includes people from all walks of life who decide to move back home with parents as adults. Especially with rising student loans and increased housing costs, many people are choosing to live at home for a few years after college in order to save on living expenses and aggressively pay off debt. Paying Off Student Loans Student loans are considered "good debt" because they help you earn a degree that leads to a higher-paying job. This works in theory, but college costs have been rising in recent years, even as most starting salaries have stayed pretty low. Unless you're going into a profession that you know pays a very high starting salary right out of the gate, you should assume that you'll be earning at the lowest end of the range. Much of your income at the beginning of your career could go to debt payments - the longer it takes you to pay those loans off, the more they will cost you in interest and lost income that could ...

Need some new side hustle ideas or ways of really making money from home? There are legitimate ways to make extra money online, but there also are a lot of bad deals and illegal schemes out there. Work-From-Home Red Flags Consider these red flags before taking any work-at-home deal: 1. Is it on the Federal Trade Commission (FTC)'s list of common work-from-home scams? 2. Is there a start-up fee? Did they request that you send them money (even a small amount)? Have they asked for your financial account information? 3. Is the product worth it? How much demand is there? How likely are you to find customers on your own? 4. How do you get paid (commission, sales, by task, hourly)? How often do you get paid? What conditions must be met for you to get paid? 5. How many hours would you have to work to make a profit? 6. Is part of your job to recruit others? (If so, it might be a pyramid scheme.) Honest Ways To Make Money Online First of all, just because something is l...

If you are getting a tax refund this year, take some time to reflect on how you can get the most bang for your buck. You can even approach it like a game. What is the smartest play? Which action will add the most to your wealth and cost the least in fees and interest? Pay Down Debt Paying down debt frees up more spending money and improves your credit. Let's say you have a smallish credit card bill and you're paying minimum amounts. You could keep paying $30 a month for a minimum payment for the next several years, or you could use your refund to eliminate the debt and put $30 more into your pocket each month. Not to mention the interest you won't be paying anymore. There's nothing quite like the feeling of paying off a debt. It can get addicting. With each debt you pay off, you can add that to payments on your next largest debt, and before you know it, you can make real progress toward becoming debt-free. Start An Emergency Fund Having an emergency fund giv...

You may have heard of the famous "marshmallow experiment" in the 1960s. Stanford University researchers gave preschoolers a choice between having one marshmallow (or similar treat) right away or, if they resisted temptation for 20 minutes, a bigger prize of two marshmallows. Two-thirds gave in to the temptation. You might think, of course, 4-year-old have no self-control. No major surprise there. But the interesting part came years later when researchers found that the kids who resisted longer had higher SAT scores, fewer behavioral problems and lower body mass index (BMI) as adults than those who devoured the marshmallow within 30 seconds. These findings sparked an entire industry of tips and tools to improve self-control. But what if resisting instant gratification is less about willpower and more about where you choose to put your attention. Marshmallows And Money Many of our daily decisions come down to the question of now or later. Do I go on that trip now or ...