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What is Graduation?
Graduation is essentially selling your card for Garu. Your card is removed from your inventory and sold for the amount shown on the card's stats page. N cards usually sell for 5000, R for 10,000, SR for 20,000, etc.
How do I Graduate a Card?
On the Yell page, click the fourth tab to get to the Graduation page. From there, pick which cards to Graduate for some Garu. Click the pink button on the top of the page to receive your Garu. The only way to increase the amount of currency received is to level up the Rarity of a card.
When Should I Graduate a Card?
When you need Garu instantly. It is not really recommended to graduate girls since Garu comes easily from events, battles, and gifts. Cards are better used to improve other cards.
If you graduate a card, it is highly recommended that it be a low stat N card since other higher rarity cards will be much stronger with a bit of leveling. Graduating a high-tier card is usually not worth the quick Garu that you might make, since those cards generally have the potential to be useful in your deck as their stats can reach high values if you transform them with similar cards. This rule generally applies to HR and higher rarity cards. It's also inefficient as having 3 or more lower rarity common cards may end up giving you more Garu than an HR or higher card.