“Bad credit can’t prevent me from getting a job”
Several employers now use credit reports along with applications when screening a potential new hire. If there are two equally qualified applicants and one has a better credit history and score, the employer can safely assume that the applicant is more responsible and dependable. Obviously, that’s not always true, I know if an employer had pulled my credit as a young adult, they probably would have gone with a different applicant, my credit history doesn’t reflect my work ethic, in reality, I was a very dedicated and responsible employee… That was not the case with my personal finances.

“Fine Print isn’t important”
Wrong! I think the fine print is overlooked for two reasons. 1- It’s tiny print that’s hard to read and usually really really long… Who wants to strain to read two long, very tiny paragraphs about nonsense? And 2- It’s a lot of mumbo jumbo, written by an attorney using legal jargon that most people simply won’t understand. So if reading a long tiny print paragraph wasn’t bad enough… You want me to read a long tiny print paragraph I can’t understand?

In reality, the fine print is the most important part to read! That’s where they sneak in all the terms and fees and miscellaneous things that will come up later, but you won’t have a leg to stand on when you try to fight them because you signed the line stating you read and understood the terms of the agreement.

“Bouncing a few checks isn’t that big of a deal”
I learned this one the hard way when I was 17 (who gives a checkbook to a 17 year old?). I took the class in high school that taught you how to balance a checkbook, but beyond balancing my fake checkbook with my fake job, I never did it again. When the real checkbook came I kept a mental note of what I had spent. That obviously didn’t work out too well and I bounced a few checks. Next thing I knew, I was being sued for a $18 check I wrote to the pizza parlor. I had been reported to Chex Systems and had to take a checking class (similar to drivers ed when you get a speeding ticket) where we learned how to balance a checkbook and manage our finances. The entire ordeal was not only humiliating but it stayed on my record for 5 years!

“Making a late payment to my credit card is OK, so long as I pay it”
While the statement Better late than never does have some credit, even more true is better on time then late! Payment history makes up 35% of your overall score so it’s important to maintain a good payment history.

“I don’t have to worry about credit until I’m older”
Another thing I learned the hard way… By the time I thought I had to worry about credit it was already too late, I was knee deep in credit card debt and student loans. If I had worried about credit before I truly needed credit, I’d be in a much better place today. 12 years later I’m still recovering from the mistakes I made when I was first starting out.