By Maura Attardi
Engagement Insider
Studies show that some 80 percent of women are the primary spender in their household, even though only about 40 percent are the breadwinners, according to a recent study by Pew Research. Many of these women also pay the bills and take responsibility for teaching their children about money. Yet many of these women would not be able to get the loans they need or want because of a lack of sufficient credit.
Although having no credit or limited credit is better than having bad credit, it still presents some problems. Creditors lend money based on the potential risk of default, which is determined based on the history of managing credit accounts. So if you have no credit history, there’s no way to prove that new accounts can be managed responsibly.
To make sure you get credit for your good credit, there are a few important rules to follow.
Get the facts. Consumers are entitled to annual free credit reports from each of the three bureaus. You can obtain your reports by visiting www.annualcreditreport.com.
Assess the situation. Determine what kinds of existing accounts you have. If they are joint accounts, information about the account should appear on your credit reports. However, if you are only listed as an authorized user on your husband’s account, for example, the information may or may not appear. If this is the case, consider adding you as a responsible user and report the account’s activity on your credit file.
Safely build your credit history. If you have few or no existing accounts, one safe way to build your credit is to get a secured credit card or loan. This type of account will allow you to make a deposit into a savings account with a bank to secure a line of credit. The credit card company then issues you a card or loan with a line of credit for at least the amount of your deposit.
Help them help you. Credit bureaus simply compile and report information that is provided to them. If you had credit under a different name, or in a different location, take the time to supply the bureaus with complete and accurate information.
Finally, make sure you know your rights when it comes to credit. The Equal Credit Opportunity Act and the Fair Credit Reporting Act give you specific rights that protect your credit information and help you obtain credit. To learn more, visit MoneyManagement.org and register for “Your Credit Report and Credit Score,” a free live webinar.
Source: Money Management International