My first apartment was a complete mess. I moved there because it was cheap and close to work. The first night I cried because I couldn’t believe this was my life. It was the traditional crummy, first apartment. (I’m happy to say that I’ve since progressed to some nicer apartments!)

Renting an apartment, much like buying a home or car, can be a stressful and sometimes daunting task. Often young renters don’t know what to look for, what questions to ask, or what is expected when renting an apartment. Being on your own for the first time can be so exciting that you can overlook details that will cause a disaster later. Below are tips to help make your apartment search smoother.

Make sure you can afford to live on your own. Before you make that leap from your parents’ home to your own place make sure you are financially ready for the responsibility. Your rent payment should not consume more than 30 percent of your monthly income. You may even consider getting a roommate to share the cost of rent.

Be cautious of incentives and deals. Not every deal turns out to be so great. Sometimes it’s just bait to pull you in. Be wary of signs that read, “One month free rent” or “Special savings.” Often apartment complexes will advertise rent for a certain price, but the rate will increase afterwards.

Understand the total cost of the apartment. Rent isn’t the only financial obligations when leasing an apartment. Consider other monthly costs such as utilities. Some apartment complexes require you to pay for convenient services like trash pickup or assigned parking.

Live within your means. There’s a lot to consider when renting an apartment – location, price, number of bedrooms, etc. A two bedroom apartments is more expensive than a one bedroom apartment. Apartment prices also vary depending on the neighborhood. Don’t try to take on more than you can handle. Maybe a studio apartment (sometimes known as efficiency) is lighter on your wallet than a one bedroom apartment.

Check your credit report. Many young adults may be surprise to know that their credit report has a huge impact on their ability to rent an apartment. If you have a low credit score you may still be able to rent an apartment, but the leasing office may require you to pay first and last month’s rent in advance along with the deposit and other fees. Ouch! That’s expensive. However, a high credit score can mean extra savings and less up-front cost like down payments, fees, and advance rent. To find out what’s on your personal report check out AnnualCreditReport.com.

Read the lease agreement. Being unaware of what’s in your leasing agreement can cause a lot of financial problems. For example, know the apartment’s policy for damages you cause to the apartment. Some apartments will charge you for certain damages like a hole in the wall or a broken window.

Consider renter’s insurance. You may consider it an extra bill, but like health or auto insurance, renter’s insurance can save you money if something were to happen to your apartment. Renter’s insurance covers damage to personal property in the case of a fire, hurricane, or some other natural or foreseen disaster.

Finally, leasing is a two-way street of responsibility. If you feel your landlord is neglecting certain responsibilities, research your state’s tenant rights.

For more, read When renting makes sense.

A tweet by @CNNMoney_News lead me to an article about the increasing number of consumers who are using layaway plans to pay for back to school supplies. Honestly, I didn’t even know that layaway was still a thing. In fact, my only experience with layaway is when I pass the abandoned desk at my favorite discount retailer.

Since I am in the store a lot more than I should be (another story for another day!), I had the opportunity stop by the unmanned desk yesterday to see what layaway was all about.

The first think I noticed was that it took more than ten minutes for someone to notice that I was standing there. During my time, I read the terms. In a nutshell:

-It costs $5 (plus tax) to put something on layaway
-You must put a down a deposit of $10 or 10% (whichever is more) to hold something
-You have only 30 days to pay in full
-If you don’t pay in 30 days, there is a $5 fee (plus tax)
-You can’t put sale items on layaway
-Some full price items are not eligible for layaway (at their discretion)
-You don’t get to take the item until it’s paid for
-If the item goes on sale while you’re paying, you don’t get the discount
-There is a $5 fee (plus tax) if you change your mind

Wow, with a sales pitch like that, who could resist?!

I should also mention that they accept cash, checks, and (drum roll please) CREDIT CARDS! So not only do you have the opportunity to pay fees for the privilege of holding something you can’t afford, but you can also pay interest! Sarcasm aside, I truly wonder why this payment option hasn’t been retired.

Perhaps layaway made sense when “stuff” and credit were scarcer, but we seem to have an abundance of both today. My advice is to save up your money and then go buy what you need.

Note: This is a good time for me to remind readers that my opinions on this blog do not necessarily reflect the opinions of Money Management International.

Sure you’ve heard of Experian, Equifax and TransUnion, but there’s a lesser-known consumer reporting agency worth knowing about.

Many banks and credit unions use the services of ChexSystems to help them determine whether or not to open new accounts. ChexSystems maintains a database on consumer’s bank accounts that have been mishandled. If you have written numerous bad checks or closed an overdrawn bank account in the recent past, your name and how you mishandled your previous bank account, has probably been supplied to ChexSystems. Negative information remains in ChexSystems database for 5 years (versus 7 years for the credit bureaus).

If you wish to get a copy of your ChexSystem file showing what information is entered, please go to ChexSystems Web site. (You can see a sample report here as well.) Under the FACT Act, you are entitled to a free copy of your report every 12 months.

If you find an error on your report, you can dispute the item(s). ChexSystems is required to research any entry that you believe is inaccurate and will report back to you with their findings in approximately 30 days. If the reinvestigation does not resolve the dispute, you may be able to add a statement, in 100 words or less, to your file giving your version of the dispute. ChexSystems will include a summary of your statement in future reports.

Identify theft victims will also want to keep ChexSystems in mind. Just as with the credit bureaus, you can place a security alert you’re your ChexSystem file. You can also “opt-out” of prescreened offers by calling 1-877-OPTOUT 5. (The number to opt-out with the credit bureaus at 1-888-5 OPTOUT.)

Like the three major credit bureaus, ChexSystems is regulated by the federal Fair Credit Reporting Act (FCRA). You can read the FCRA by visiting the Federal Trade Commission’s Web site.