5 Credit Mistakes to Avoid After College

Graduating college is exciting—but navigating credit for the first time? Not so much. Building good credit is crucial for renting an apartment, buying a car, or securing a job. Here are five common credit mistakes new grads make—and how to avoid them.

1. Missing Payments
   Even one missed payment can hurt your credit score. Set up autopay or reminders to stay on track. Life gets busy, but your credit history sticks around.
   
   
2. Maxing Out Credit Cards
   Using too much of your available credit (called your credit utilization ratio) can lower your score. Try to keep balances under 30% of your limit.
   
   
3. Ignoring Student Loans
   Out of sight doesn’t mean out of mind. Know your repayment plan and start making payments—even small ones—on time.
   
   
4. Applying for Too Much Credit at Once
   Each application triggers a hard inquiry, which can ding your score. Space out applications and only apply for what you need.
   
   
5. Not Checking Your Credit Report
   Mistakes happen. Check your credit report regularly for errors or fraud. You can get a free report annually from each bureau at AnnualCreditReport.com.

Everyone makes mistakes—what matters is how you respond. With a little awareness and consistency, you can build strong credit and set yourself up for financial success.