Dr. Jo Turner, Professor, Family and Consumer Economics
If you have been granted credit lately, from a department store, charge account, a home mortgage, or an automobile loan, your credit record is probably in good shape.
Yet, there could be cases where a credit record is inadequate or even nonexistent. Many older adults have slim credit files. Some have been cash only buyers for years.
Some people, especially women, may have credit information related to an account listed in a spouse's name and not in their own file.
The Equal Credit Opportunity Act specifies that all joint accounts opened after 1977 are automatically reported in both names. That is joint accounts! In addition, credit grantors must consider the record of any account held only in one person's name if the spouse can show it reflects his or her own credit worthiness.
Don't wait until a death or divorce occurs to find out if you have a credit record for yourself. This same "don't wait for an emergency" advice applies to single adults who want to establish financial independence.
To find out if you have a credit record in your name, contact one of the credit reporting agencies.
- Equifax 1-800-685-1111
- Experian 1-800-397-3742
- Trans Union 1-800-851-2674
The business of the credit bureau is to collect and store information about borrowers supplied to them by lenders. The credit bureau is a clearinghouse for credit records. It does not assign credit ratings. That is the responsibility of the individual credit grantor based on the application and information about the person in his or her credit file.
If you find you don't have a credit record, or that it is woefully lacking, here are some recommendations to help build a good credit history:
- Open a checking and or savings account. This will not actually begin your credit file, but will show that you have money and that you know how to manage it.
- Buy on credit at a local store, or get a small loan from your bank or credit union. Then repay the loan according to the terms agreed upon. This will show that you can use credit responsibly.
- If you can't get a loan yourself, ask a friend or relative with a good credit rating to co-sign. Then, pay back the money according to the loan contract.
For more information on credit contact your local county Extension agent.
