If you have delinquent credit and are married, you might want to build your credit in your name instead of using your spouse. Somebody has to have stability. Also if you are divorced and all the credit cards of credit information are in your spouse’s name you will need to reestablish your credit in your name.
Getting your credit reestablished is the first step to repairing your credit. When you obtain your credit report you will see that your spouse’s name is listed on the credit reports. This is because together you and your spouse applied for credit cards, took out car loans or what have you.
This means that you are responsible for your spouse’s account. The advantage is that credit bureaus cannot list the negative accounts against you if you are divorced. Once you have copies of your credit report you will then need to cancel all joint accounts.
If you contact the creditors to resolve the issues on your credit report be sure to ask the creditors to take in consideration your spouse’s credit history. It is important to bring into light your spouse’s credit history when applying for a loan.
Let the lenders know that you are now divorced and starting your own credit line. If you apply for credit cards, be sure the cards are in your name and use them wisely since this helps to rebuild your credit quicker than most sources.
Make sure that you pay minimum balance on the credit card accounts each month to avoid delinquencies. If at all possible when you see that your funds are low; pay your bills rather than making a purchase on your credit card.
Once you bills are paid be sure to make a payment on your credit card. This method not only keeps you out of trouble with other creditors, but offers a solution for repairing your credit. If you can afford to pay your bills each month and use your credit card be sure to only purchase items you need and keep it at a minimal.
If at all possible payoff your credit card balances each month to avoid interest. Interest rates cost an additional hundreds of dollars in the long run, so paying off your dues on time can save you money. If you don’t have credit cards and decide to choose a card be honest on your application and look for the best interest rates available.
If you are in debt it is wise to payoff your dues before applying for a credit card, unless you intend to use the card to get out of debt. If you plan to use the card to get out of debt search for the best interest rates, as well as cards that offer cash back on your spending. There are tips for managing credit cards to repair credit.
It is important that you are consistent with the use of your name. For example, if your name is Robert Leon Swisher Jr., always sign your name accordingly. Do not use your card dishonestly for advantages. Few people believe that lying can get them out of a problem. The truth lying gets you in deeper. If you are filling out an application for credit cards tell the truth. It is important that you understand the timeframe to apply for a credit card. If you are out of work, lived at your resident for less than a year or you have negatives on your credit report, this is not a good time to apply for a credit card.
If you are stable it is always wise to apply with lenders where you have done business with them at a later time. Building your credit after divorce is difficult at times. However it is not an impossible task. It is important that you are aware that most credit card solicitations are gimmicks that only offer you a solution for hanging yourself.
Instead of getting out a rope, it is wise to stay alert, and investigate any credit card offer made available to you. Finally, you want to avoid low introductory rates on credit cards since after about six months the interest rates often hit the roof.
By: Jonathan Cheong
Posts Tagged ‘Credit Report’
Build Credit in your Name
April 28th, 2010The Credit Score Rating Scale
April 21st, 2010
It’s a beautiful sunny Saturday, and you and your loved one are out driving with your realtor. She shows you a house; you immediately fall in love. But in the back of your mind, you worry. Will you be able to get a mortgage for this lovely place? Will the interest rate be too high? Many of your fears can be alleviated by checking and understanding your credit score.
The credit score rating scale is a perplexing numeric equation, and it can be daunting to comprehend. There are plenty of factors that influence the number, and every one of them can change the final result. The more you understand about this concept, the easier it is going to be for you to get the loan or mortgage you desire. Or, you can use this knowledge to make the high-priority repairs needed to repair your credit score faster.
How your credit score is tabulated
There are numerous figures that are reviewed by companies in order for them to form your credit score. They scrutinize your past payment history, how quickly you pay your debts and obligations, and how promptly you pay them. They give much credence to your outstanding obligations. If you are working with too high a debt burden, your credit score can be lowered. Credit agencies study how many years you have had your credit history. If you are newly starting to establish credit, your credit score may be mediocre, even if you do not show any bad points on your credit report.
Two additional significant factors for your credit score
Your latest credit card applications are an additional area that companies will delve into. If you show numerous credit applications on your report, this will be counted negatively on your credit report. You must also be concerned about what types of credit and loans you possess. You do not want to show a lot of overly large balances on your current credit history. These balances, along with higher-than-normal interest rates, are going to go hard on you and lower your number.
What is a good credit score?
Any score that is 700 or higher is counted as a very good score. If you possess a score of 700 or higher, you should see no obstacles to obtaining credit at a exceptional interest rate. A score of 650 and lower definitely has margin for improvement. A score between 650 and 450 needs to be worked on. You are going to most likely have a harder time obtaining a mortgage or any type credit without securing it. This entails that any advance that you apply for is going to require to have substantial amounts of collateral in place to get it. If you show a credit score of 450 or lower, then you desperately need to get some assistance with your credit situation. In that case, it is probable that you can not get any kind of credit or mortgage unless you get some type of counseling to repair your record.
Obtaining the assistance that you require
There is assistance ready for you when you are seeking help to repair your credit score. There are non-profit companies that can assist you with no cost credit counseling. They can propose to you ways to get your credit score increased, and aid you in becoming extra responsible in your monetary decisions. Obtaining this assistance now with your credit situation will get you on the road to recovery faster.
There is hope
If your credit score is low, or if you are turned down for a credit card or loan, do not be discouraged. You can improve the credit score number with diligent effort and some discipline. You can develop a plan to improve your score, then work that plan to make the changes you desire. Do not give up! Others have made changes, and so can you.
By: Mike Ziegler
Understanding Frozen Credit
April 19th, 2010
Credit freezes are often confused with fraud alerts, but they are really nothing similar. A fraud alert is when new creditors are alerted that you may have been the victim of fraud, and the creditor is required to take additional verification steps that prove they should be accessing your credit and opening an account for you before they can issue the credit. Fraud alerts also remove you from receiving prescreened offers for insurance and credit.
A credit freeze is something a consumer can place on his or her own credit report – depending on where in the country you live. Some states allow anyone to put a freeze on their credit; while others only allow the victims of identity theft to freeze their credit. Here are other tips that will help you understand the basics of a credit freeze:
Even if your credit is frozen, your report can be updated by your existing creditors. Don’t think that by placing a freeze on your credit report you can slide by with a few late payments that won’t get reported! A frozen credit will only prevent new creditors from accessing the information in your report. If your existing creditors want to check your credit report to see how you are paying your other creditors, they can. A freeze of your credit is made with individual credit bureaus. If you freeze your credit with Experian, it won’t be automatically frozen through TransUnion or Equifax. You have to freeze each manually if you want all access to be frozen. “Thawing” a credit freeze; in other words, removing the hold you have on your credit report, takes several days to take effect (unless you live in Utah where they’re able to unthaw in 15 minutes!) If you plan to apply for new credit or apply to rent an apartment or apply for a new job; you will want to thaw your credit a few days before you’ll need it to be sure that these authorized people will have access to the report. Freezing your credit does not prevent you from using your credit cards. It’s not like “freezing” the credit card or “freezing” a bank account. It literally only effects the ability of a new lender to look at your credit report. While the intent of a credit freeze is usually to prevent identity theft and fraud- there are still numerous ways around it that could result in you becoming the victim of identity theft or fraud, despite having a freeze on your credit. For example, in the event a lender doesn’t try to check your credit before issuing a new account, new credit could be opened in your name if the criminal had the right details to do so.
Hopefully, this list has given you some useful insight into what a credit freeze is, and what it is not. Using a credit freeze may help reduce your potential for being the victim of identity theft, but if you are hoping to end the prescreened credit card offers or have creditors alerted to possible fraud activity when they begin to open a new account for you; chances are you are looking for a fraud alert service and not a credit freeze.
By: Debbie Dragon
