Fresh out of divorce, my friend announced how terrible she is in handling the finances and that she wants to know how to build good credit for herself. It turns out that anything about money and accounts was the ex-husband’s responsibility. When they broke up, she realized that she should have considered understanding credit and anything that has to do with it. Doing research for my friend, I found out that she is not the only one who has this dilemma. A lot of women make the mistake of having too much or not enough credit.

In one of my readings, experts note down some ways ladies can build good credit.

1. Do not rush it and start small. Creditors will think you are desperate for money when you apply for new credit cards and lines one after the other.
2. Too many credit cards are generally not a good idea. Limit having only two or three plastics. Resist temptation of getting store cards. Even if there are discounts on the first purchase of store cards, interest rates and penalties are higher than traditional cards. Moreover, if there are too many cards under your name, it is likely that you will overlook dues of at least one card and that will affect your score.
3. When married, consider having your own account name, one that is not shared with your husband. This will establish a separate credit history for you. If credit is shared for loans and credit cards in a joint account, the husband’s name is often used. This leaves the wife without good credit in the event of separation or divorce.
4. In case of divorce, do not close joint accounts at one go because it will greatly affect credit ratings.
5. 5.    Asking and understanding your financial situation is a smart move. It is never too late to know how much you owe and how much you financial institutions are charging for interests on mortgage, loans, and credit cards.
6. Aim to pay bills on time. If possible, pay as much possible, more than the minimum due (paying the outstanding amount each month is even better). Your credit card company will appreciate your effort and consider you a good customer.
7. Keep balances within limits. It is actually better to keep at least 50% of your limit open.
8. Request for a free copy of credit report annually. Study the contents carefully and report any discrepancies right away.

I hope my friend will be able to read this for her to know that it is never too late to build good credit under her name.

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