CREDIT from THE WOMAN'S PERSPECTIVE

Women's needs are different in so many ways.

Like men, women find the availability of credit a necessity. But, as traditional relationships change and the family is reshaped, women often find out too late that their access to credit is not as easy as for men.

Some of the credit concerns women have are:

• Many married women need and desire credit in their own names, separate and apart from their spouses
• If a divorce is pending, will she be able to get credit in her own name if most of the accounts were in his name only?
• If the marriage ends in a divorce, will his bad credit rating affect hers-- even if she has credit in her own name and her credit rating is excellent?
• Single mothers need the emotional comfort of knowing that a financial safety net is there in the form of ready and available credit for emergencies and as a budgeting tool.

Get Credit in Your Own Name.
Even if you're married you can get credit in your own name. Anytime you apply for a credit card or a loan you'll be asked whether you want a joint or individual account. If you want an individual account your income alone will be considered. When you have an individual account in your own name nobody can adversely affect your credit record-- with the following exceptions:

If you live in one of the "community property" states, which are

Arizona,
California
Idaho
Louisiana
Nevada
New Mexico
Texas
Washington
Wisconsin

then any debt incurred during a marriage is the responsibility of both spouses. The individual debts of one spouse may appear on the credit report of the other, and this is often a source of a bad credit rating for an innocent spouse.


Adding a "User" to Your Credit Card Account.
You can name another person as a "user" of your credit card. It's a good convenience for a student or someone who couldn't otherwise get a credit card. A credit report reflecting the account history will also exist in the user's name. But you will be responsible for paying the account. Clearly, you should set the ground rules for an additional user and then carefully monitor his or her charges. An excellent alternative to worrying whether your teenager is loose in the mall, or away at school, with your credit card is the stored value card. Take a serious look at The Vaya pre-paid debit card -- you may set your own spending limits and get the universal acceptance of a MasterCard® without risking your credit rating. Plus it has guaranteed approval even if you have bad credit.



If a Divorce is Coming.
Under the law a creditor can't close a joint account just because of a divorce. But he or she can do so at the request of either spouse.

The creditor doesn't have to convert a joint account to an individual account just because one of the spouses wants it. The creditor will ask you to reapply for an individual account and, on the basis of your individual income and credit history, will approve or deny you the account.

If you want to remove a spouse from a mortgage or home equity loan the lender will probably make you refinance-- that is, make a "new" loan-- in your name using your individual income and credit history.

If you are considering divorce or separation, pay careful attention to your joint accounts and loans. We cannot overemphasize the importance of making timely payments during the period of before you apply for individual accounts. Remember: both of you are responsible for joint accounts!



Going It Alone: Single Mothers.
The modern American family no longer closely resembles Ozzie and Harriet or the Cleavers. Nowadays it's increasingly likely that children may be reared by a single mother.

That single mother must often depend upon her own income alone for her family's financial security. So for her, credit can be a valuable convenience and a reassuring safety net. A mortgage loan can mean freedom from the tyranny of rent. And a credit card is almost a necessity to cover those unexpected expenses and for emergencies.

As we've said before, women contemplating divorce should take every step possible to ensure that the joint accounts carried during the marriage are paid on time. Otherwise she may find it very difficult to get credit in her own name after the divorce.

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