Credit-Literacy Lessons for Young Home-Buyers

We already know many first-time home buyers are young and broke. Turns out they've got a lot to learn about credit, as well.

Four out of 10 credit-card holders ages 18 to 29 made only the minimum required payment on their cards in the past year, says a survey by the FINRA Investor Education Foundation, a nonprofit financial literacy firm based in Washington, D.C.,

Generation Y is graduating from college with a record-breaking amount of student-loan debt -- and into a job market with slumping entry-level employment and salaries. But deciding not to pay anything above the minimum card payment lowers one's credit score, a disadvantage to those looking to make larger purchases, such as a car or first home.

That's why it's crucial for younger home-buyers to get on top of their credit-card debt now, says Gregory B. Meyer, community relations manager for Meriwest Credit Union in San Jose, Calif.

Here are some of Meyer's tips for remaining credit-worthy enough to buy a home: