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A cardholder with a solid payment history can help you build credit, but the opposite is also true.

If that person misses payments, it could damage your own credit.

Your credit is often used to decide if you'll be approved for things like an apartment or an auto loan.

And because the age of your credit accounts is typically one factor that is used to calculate your credit score, it's important to start building a history as soon as possible.

The money we make helps us give you access to free credit scores and reports and helps us create our other great tools and educational materials.

Compensation may factor into how and where products appear on our platform (and in what order).

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Plus, when you forego credit cards, you can eliminate the possibility of spending money you don't have."The Great Recession also may have increased millennials' uneasiness about finding employment.On-time payments are typically reported to the credit bureaus, which helps you establish positive payment history.However, if you make late payments, or default, this negative activity is likely to be reported as well.A majority of both older Americans (age 30 and over) and younger Americans (age 18 to 29) consider it harder for young people today to find a well-paying, steady job than previous generations, according to a 2014 Allstate / National Journal Heartland Monitor Poll.And if they do find employment, they're not sure how long it'll last.

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