| Repairing your credit file is one thing. Establishing | | | | objective manners such as, how long on the job |
| and maintaining your credit file is another. Here are | | | | and how long at your residence. Similarly do you |
| some ideas to help you get a good credit file... and | | | | have checking and savings or just checking? |
| maintain a good record. | | | | Bolster Your Chances of Approval: |
| Get credit in your own name - Whether single, | | | | * Always apply in the exact same name. Don't |
| married, separated, or divorced, you are entitled | | | | use a middle initial sometimes and not others. Be |
| to a credit file in your own name. If your spouse | | | | consistent. |
| or former spouse had or has bad credit and most | | | | * Bolster your credit application. If you have |
| credit was in the spouse's name, it would | | | | negative remarks is there a reason? If so state it |
| definitely be advantageous to have your own | | | | VERY briefly. If you are an administrative |
| credit file. Even if debt was joint this could be a | | | | assistant, don't say clerk typist. |
| wise strategy because by separating the files and | | | | * Apply for credit when you are most likely to |
| insisting that your file not include any of the | | | | get it. For example apply when employed, have |
| spouse's credit, some negative credit could easily | | | | lived someplace for a lengthy time, have not had |
| disappear. | | | | too many inquiries, etc. |
| All that is needed is contacting each of the three | | | | * Apply with creditors with whom you have a |
| credit bureaus and requesting credit in your own | | | | history. |
| name. Then insist that the bureau remove ALL | | | | Apply Credit Wisdom When You Have Credit: |
| accounts belonging to your spouse. | | | | * Scrutinize pre-approved cards. Many of these |
| Know how credit offers are evaluated - When | | | | can be used for special catalog purchases only |
| you apply for credit, most often a credit or risk | | | | and are not accepted by most creditors. Similarly |
| score is assigned to establish your probability to | | | | don't be swept up because it offers rebates or |
| repay the debt. This method is used by applying | | | | other gimmicks. What is the interest rate, annual |
| calculations based upon formats developed by | | | | fee, grace period. Sometimes the gimmick could |
| offices like Fair Isaac. But besides credit scores, | | | | be a "good deal"... but sometimes the price might |
| creditors sometimes evaluate applications using | | | | be just too high to pay. |
| the three "C's": Capacity, Collateral, Character. | | | | * If you have a card, protect it. For example, |
| * Capacity: A creditor wants to understand your | | | | normally do not give your number out to a |
| ability to repay. But additionally they want to | | | | salesman who calls you on the phone. You have |
| know how much debt you can realistically be | | | | no idea who you are talking to unless you placed |
| expected to pay back. How long have you been | | | | the call. |
| on the job? What is the likelihood of | | | | * Rather than going over your limit, ask for an |
| advancement? Is your job and industry stable? | | | | increase. Send your creditors a change of address |
| Are you a secretary or and executive secretary? | | | | when necessary. |
| What is your current debt ratio? What kind of | | | | * Once approved for a card, do not go on an ego |
| debts do you have? Are they all unsecured such | | | | trip and "stock up" on more cards. There is a |
| as credit card? Is there secured loans such as car | | | | great danger in relying solely on credit and running |
| or home? How long have you had these | | | | up balances. Guaranteed, they will get out of |
| accounts? Do you have a good history of on time | | | | control. Similarly many creditors will frown on too |
| payment? | | | | many credit cards that are unused. You can feel |
| * Collateral: Do you own a home, mutual funds, | | | | greater power by refusing an application, than by |
| etc. This area could be crucial in procuring a loan if | | | | accepting another one. Once you learn to control |
| you have many late payments. | | | | credit, credit applications will always be available to |
| * Character: your character shows through in | | | | you. |