CREDIT HISTORIES AND RECORDS

Building Up a Good Record

On your first attempt to get credit, you may face a common

frustration: sometimes it seems you have to already have credit

to get credit. Some creditors will look only at your salary and

job and the other financial information you put on your

application. But most also want to know about your track record

in handling credit--how reliably you've repaid past debts. They

turn to the records kept by credit bureaus or credit reporting

agencies whose business is to collect and store information

about borrowers that is routinely supplied by many lenders.

These records include the amount of credit you have received

and how faithfully you've paid it back.

Here are several ways you can begin to build up a good

credit history:

-- Open a checking account or a savings account, or both.

These do not begin your credit file, but may be checked as

evidence that you have money and know how to manage it.

Cancelled checks can be used to show you pay utility bills

or rent regularly, a sign of reliability.

-- Apply for a department store credit card. Repaying credit

card bills on time is a plus in credit histories.

-- Ask whether you may deposit funds with a financial

institution to serve as collateral for a credit card; some

institutions will issue a credit card with a credit limit

usually no greater than the amount on deposit.

-- If you're new in town, write for a summary of any credit

record kept by a credit bureau in your former town. (Ask

the bank or department store in your old hometown for the

name of the agency it reports to.)

-- If you don't qualify on the basis of your own credit

standing, offer to have someone cosign your application.

-- If you're turned down, find out why and try to clear up

any misunderstandings.

What Laws Apply?

The following laws can help you start your credit history

and keep your record accurate:

THE EQUAL CREDIT OPPORTUNITY ACT gives women a way to

start their own credit history and identity.

THE FAIR CREDIT REPORTING ACT sets up a procedure for

correcting mistakes on your credit record.

Credit Histories for Women

Under the Equal Credit Opportunity Act, reports to credit

bureaus must be made in the names of both husband and wife if

both use an account or are responsible for repaying the debt.

Some women who are divorced or widowed might not have separate

credit histories because in the past credit accounts were

listed in their husband's name only. But they can still benefit

from this record. Under the Equal Credit Opportunity Act,

creditors must consider the credit history of accounts women

have held jointly with their husbands. Creditors must also look

at the record of any account held only in the husband's name if

a woman can show it also reflects her own creditworthiness. If

the record is unfavorable--if an ex-husband was a bad credit

risk--she can try to show that the record does not reflect her

own reputation. Remember that a wife may also open her own

account to be sure of starting her own credit history.

Here's an example:

Mary Jones, when married to John Jones, always paid their

credit card bills on time and from their joint checking

account. But the card was issued in John's name, and the credit

bureau kept all records in John's name. Now Mary is a widow and

wants to take out a new card, but she's told she has no credit

history. To benefit from the good credit record already on the

books in John's name, Mary should point out that she handled

all accounts properly when she was married and that bills were

paid by checks from their joint checking account.