 TITLE: Credit Mistakes to Avoid When You Are Young CONTENT: 2\\. Using Credit Cards Irresponsibly\n------------------------------------\nYou can build a positive credit history and grow your credit score with a secured card or student card, but only if you maintain good credit habits. Before you open credit card accounts and begin using your cards, learn about the factors that go into building a good credit score: payment history, credit utilization, credit mix, length of credit history and new credit. Each of these has an upside and an equally consequential downside.\nIf you don't feel prepared to manage credit responsibly, you may want to wait. After a year or two, when you have some experience managing money on your own, you may feel better equipped to handle regular bills and a credit line. Here are a few things it takes to manage credit responsibly:\n*   **Pay on time, every time.** Payment history accounts for 35% of your credit score, and every payment counts. A single 30-day late payment stays on your credit report for seven years.\n*   **Spend conservatively.** Just because you have $1,000 in available credit doesn't mean you should use it. To start, use your card to make a small purchase every month or so and pay it off right away; you don't have to carry a balance to build credit. Always try to keep your balances to 30% or less of your credit limit to maintain good credit.\n*   **Learn your card's terms.** Not only do your purchases add to your revolving balance, but if you don't pay your balance in full every month, you'll incur interest charges. How much interest? Read your card's terms carefully. They spell out how much time you have to pay off a purchase before interest kicks in, as well as what your interest rate is and what you'll pay in late fees. END