Women and Credit

It is important to build your own credit.

The law says that creditors may not discriminate against anyone because of sex or marital status. This means that you can't be denied a loan because you are a woman, or single, or married.

Almost every American has at least one credit card. Women can now get credit in their own names simply by deciding on a purchase and asking for credit.

Open a savings and/or checking account

One helpful step for establishing credit is to open a savings or checking account in your own name. This won't give you credit, but creditors often check accounts to see if you have money and do know how to manage it.

Since passage of the Equal Credit Opportunity Act, a woman who qualifies for credit now has the legal right to put the account in her name. Married women may use their maiden names if they wish. All new credit accounts used jointly by husbands and wives must be filed by creditors and credit bureaus in the names of both spouses.

A married woman with her own income may want to apply for a separate account for which she alone will be responsible. This will show creditors that she has been granted credit only on her own record of income and prompt payments.

When using credit, resist the temptation to overbuy. Don't get in debt beyond your ability to repay. Remember how much money you have and how much credit you can afford.

Use your credit wisely.

Pay your credit accounts when they are due, if at all possible. This builds your credit reputation. If unexpected expenses or illness delays your payment, contact the creditor promptly and discuss the situation. In most cases, he will extend payment dates or adjust monthly installments to help you.

For more information on money management and budgeting, contact your local county Extension office.