Avoiding Financial Pitfalls
"Financial pitfalls" are the actions that you might make that will cost you financial success and security. Sometimes these are actions that you might do (such as co-signing a loan) and sometimes these are actions others might do (such as trying to scam you out of money). Knowing the pitfalls and how to avoid them is one of the keys to financial success.
FIRST, Protect Your "Rep":
Your reputation (in relation to money) is reflected in your credit score, your savings accounts, and your ability to access money if you need it.
TIPS about protecting your "rep":
1. Keep your PERSONAL INFO to yourself. Do NOT tell people about your credit score or how much money is in your bank accounts. You may think they will just be happy for you, but they may see an opportunity to get money from you or use your credit for THEIR benefit.
2. Keep your MONEY to yourself. Do NOT loan money, even to trusted friends, during the loan process. The bank ONLY looks at your paperwork and will only see that you took a sum of money out. You will not have an opportunity to explain why you removed the money. Do not count on being paid back in time to replace the money.
3. Keep your SIGNATURE to yourself. Do NOT CO-SIGN LOANS. When you agree to co-sign on a loan, you are agreeing to make the payment on the loan as if it was YOUR LOAN. If you are not financially prepared to take over the payments 100%, Many good people with great intentions have ruined their credit histories by co-signing for irresponsible people. Don't become one of them. Protect your reputation by keeping your credit to yourself.