With young people still wary of big business and going into debt, some are opting to stay away from credit cards and loans. Even though it is a very smart idea to monitor your debt and keep it small, getting a credit card is necessary to build your credit. Why do I need one now while I am young, you may ask? It is because the length of a persons credit history is a large portion of everyone’s credit score. This means you can’t just start building your credit a year before you decide to buy a home. What happens if you do wait? You are either denied for the loan or you pay an ungodly amount of interest because you waited so long. I am not saying you need to go out and get three credit cards and max them out! This will have the exact opposite affect on your score! Another key category used in a credit score is the amount of credit used. You should use it for small and and necessary purchases only! A good way to use a credit card is use it only when you fill up with gas and then make your payment for it on time. Now you may say well I have a loan and that is building me credit. BUT! Another factor in a persons credit score is the types of credit used. An installment loan for a vehicle falls into one category and a credit card into another. In order to be able to leverage other peoples money in the future, you have to build your credit NOW! Research all options and fees available to you before accepting a card and getting into something that you have not been educated on.