‘It’s Wild How All That Adds Up’ — 21-Year-Old Confused After Checking Credit Score For The First Time
She was shocked to see how low her score was.
insta_photos | Shutterstock A 21-year-old woman admitted that she didn't necessarily know how credit works after finally checking her score for the first time. Posting about her experience to the subreddit "r/SavingMoney," she confessed that after finally checking her credit score, she was shocked at how low it was.
Like many young adults who are starting out and trying to find their footing, she wasn't necessarily taught about how credit works. The truth is: even when you think you are doing everything right, that doesn't exactly guarantee a good credit report.
The 21-year-old was confused after checking her credit score for the first time.
"I’m 21 and figured I was doing fine. I’ve been working full-time for two years, never missed rent, pay my phone bill, utilities, and even started saving a bit. I thought that was what being responsible looked like," she began in her Reddit post.
fizkes | Shutterstock
She explained that her landlord mentioned running credit checks on all tenants before leases would be renewed. Out of curiosity, she decided to open an account with a free credit app to check her score and was shocked to see that it was 584. She admitted that the number didn't make any sense at all, considering she didn't have any loans, hadn't taken any credit cards out, and didn't owe any money at all.
"I pulled the report and found out I actually did, kind of. A $90 medical bill from 2021 that I never saw, a $70 phone plan balance I thought I closed when I switched carriers, and an old online store account that went inactive but got marked as 'closed with balance due,'" she continued. "It’s wild how all that adds up, and none of the things I actually do right, like paying rent or bills, even count toward my score."
The young woman had to spend time paying off past due balances so her credit score could improve.
"I spent the weekend clearing the balances and disputing one that wasn’t mine. I also started using Fizz debit card that reports to credit bureaus just to get something positive going while I figure out whether to get a secured card," she said.
She claimed that while it wasn't a huge deal, it ended up being a wake-up call. After spending most of her energy avoiding overspending, she never realized how credit works. At the end of the day, it ended up being her "welcome to adulthood" moment, which happens to the best of us.
For many young adults, understanding how a credit score works wasn't taught in school, and even parents rarely taught it, so many people end up learning the hard way, just like this 21-year-old did.
Most Gen Z adults feel anxious when checking their credit scores.
Andrii Iemelianenko | Shutterstock
According to a report from USAA Bank, 62% of Gen Zers are so anxious about their score that they don’t check it. In fact, roughly one in five have never seen their credit score.
One of the primary hurdles when it comes to Gen Z and checking their credit score is anxiety. An estimated 54% of Gen Z said they experience anxiety over the mere idea of checking their score. As for being able to have a good credit score in the first place, Gen Z adults said many barriers prevent them from having one in this economy, including inflation and debt.
Respondents said the most significant hurdle is the rising cost of living (27%), followed by overspending (20%), credit card debt (17%), and student loans (17%). Despite the reality for many Gen Z adults, it's still important that young adults learn how to build and maintain good credit early on, even if it does feel intimidating at first. Once you understand how it works, it becomes a lot less scary.
Nia Tipton is a staff writer with a bachelor's degree in creative writing and journalism who covers news and lifestyle topics that focus on psychology, relationships, and the human experience.
