Blogging for Change

Is it time for a credit health check-up?

by Jessica Horton on
1/23/2012
in Using Credit

You can’t have a strong credit history or good credit score without having any credit history at all. And while this is a common problem for young adults and those just entering the work force, it can also be problematic for women.

In some cases, women can be both the primary spender and the sole bill-payer for their families, yet have almost no credit record of their financial responsibilities independent of their spouse. Credit history is reported separately for each debt holder, and if you are listed as an additional cardholder rather than an account owner, all of the hard work you’re putting into paying your household’s bills on time may not show up on your history. And whether you’re just out of college, newly married, long married, divorced or widowed – you need your own solid credit history.

Without a credit history, lenders are unable to evaluate your credit worthiness. How will they know that you’ll pay back the loan on time if there’s no history showing that you’ve paid loans on time in the past? If you are unsure of your credit history, it’s time to do some research. Use the following steps to help determine if you have built a strong credit history:

  1. Review all of your family’s accounts, including mortgages, loans, and credit cards. Check to see if you are listed on these accounts as an authorized user, or if it’s a joint account.
  2. Request a copy of your free annual credit reports from the three credit reporting bureaus to see if all of your accounts are listed. Any account where you are a joint account holder should be included on your credit reports.
  3. If you are an authorized user, not a joint account holder on some accounts, ask the primary account holder to contact the creditors to see if you can be added as a joint account holder or a responsible party.
  4. If you’ve ever had credit under a different name, such as a maiden or married name, send a letter to each credit agency explaining your name change. Then, request the free copies of your credit reports to make sure that your reports reflect all of your credit history, including everything under your prior name.
  5. After taking these steps, if you are still light on credit history, find a way to establish credit under your own name, but make sure you start small. Open new cards or credit lines gradually. Make sure you do your research and read the fine print before applying for a credit card. And if you do sign up for a credit card, remember to consistently pay down the balance each statement period. Using credit and paying debts consistently will go a long way toward improving your credit history.

Learn more about the importance of credit scores and credit reports through one of our free online webinars. Register for one today!

Jessica Horton is a former copywriter and community manager at MMI.

Recommended Articles

Retired man and his dog
Take Control of Your Credit
Your credit is much too important to leave to chance. If you have questions about your credit report and credit score, consider scheduling a one-on-one credit report review.
Learn More
Learn more
  • Better Business Bureau A+ rating Better Business Bureau
    MMI is proud to have achieved an A+ rating from the Better Business Bureau (BBB), a nonprofit organization focused on promoting and improving marketplace trust. The BBB investigates charges of fraud against both consumers and businesses, sets standards for truthfulness in advertising, and evaluates the trustworthiness of businesses and charities, providing a score from A+ (highest) to F (lowest).
  • Financial Counseling Association of America Financial Counseling Association of America
    MMI is a proud member of the Financial Counseling Association of America (FCAA), a national association representing financial counseling companies that provide consumer credit counseling, housing counseling, student loan counseling, bankruptcy counseling, debt management, and various financial education services.
  • Trustpilot Trustpilot
    MMI is rated as “Excellent” (4.9/5) by reviewers on Trustpilot, a global, online consumer review platform dedicated to openness and transparency. Since 2007, Trustpilot has received over 116 million customer reviews for nearly 500,000 different websites and businesses. See what others are saying about the work we do.
  • Department of Housing and Urban Development - Equal Housing Opportunity Department of Housing and Urban Development
    MMI is certified by the U.S. Department of Housing and Urban Development (HUD) to provide consumer housing counseling. The mission of HUD is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD provides support services directly and through approved, local agencies like MMI.
  • Council on Accreditation Council On Accreditation
    MMI is proudly accredited by the Council on Accreditation (COA), an international, independent, nonprofit, human service accrediting organization. COA’s thorough, peer-reviewed accreditation process is designed to ensure that organizations like MMI are providing the highest standard of service and support for clients and employees alike.
  • National Foundation for Credit Counseling National Foundation for Credit Counseling
    MMI is a longstanding member of the National Foundation for Credit Counseling® (NFCC®), the nation’s largest nonprofit financial counseling organization. Founded in 1951, the NFCC’s mission is to promote financially responsible behavior and help member organizations like MMI deliver the highest-quality financial education and counseling services.