Finances: Credit
This document
provides basic information on credit and other financial matters.
It is not intended to be used as legal or financial advice. For
advice regarding your own legal or financial questions, consult
with an attorney or accountant.
GETTING
STARTED WITH CREDIT
Creditors--people or institutions that extend credit--cannot discriminate
on the basis of sex, race or marital status. However, they can
reject a credit application for other reasons, including a bad
credit history or inability to repay.
If you do not have a credit
history there are several ways to develop one. Open a checking account
and do not overdraw it. Open a savings account and make regular
deposits. Apply for and use a credit card, making at least the minimum
payment on time. If you are married and using your husband's credit
cards, contact the creditor to ask that your name be added to the
account and that credit bureau reporting be done in both names. Be sure
to use your own name (i.e. Mary Smith, not Mrs. John Smith) for all
transactions. If denied credit, ask the creditor what you can do to be
approved.
APPLYING
FOR CREDIT
If you are applying for credit--such as a car loan or a credit
card--in your name only, you are required to list only your income and
provide only your signature. The creditor can not ask about your
husband's income unless you want to use it to help you qualify. If you
are using his income, information about him and his signature may be
required.
Creditors can not require you to
report that you receive child support, spousal maintenance (alimony) or
public assistance. If you want to include these items as part of your
income to help you qualify and if you can show that you receive regular
payments, the creditors must consider these as part of your income.
Creditors cannot ask about an applicant's plan to have children. If you
are denied credit for any reason, you must be notified about the reasons
in writing within 30 days.
JOINT
CREDIT ACCOUNTS
Make sure that accounts used with your husband include your name and are
reported to the credit bureau in both names. Many women assume they have
a joint account with their husband but are only "authorized
users" of his account. For any joint credit account with your
husband, both of you are responsible for paying off the debt. In a joint
checking or savings account, either you or your husband may make
withdrawals without permission from the other.
YOUR
CREDIT HISTORY
To review your credit history, contact a credit bureau and ask for your
report. The report is free if you have been denied credit in the past 30
days; otherwise there is a fee. Banks and other creditors use one of
several national credit bureaus. Your bank can probably tell you how to
contact a credit bureau. If your credit report is wrong or has negative
information, you can ask that it be corrected or you can add a written
explanation about past problems to the credit record. Negative
information on the credit report is eliminated after a specified number
of years. Check with the credit bureau regarding its policies.
INABILITY
TO PAY
If you are unable to pay a bill for any reason, inform the creditor
immediately and send a partial payment if possible. This will show your
willing- ness to pay. The creditor may allow a more flexible repayment
schedule. Non-profit consumer credit counseling agencies can help you
work with creditors and budget your finances to avoid future problems.
Check your telephone directory for credit counselors.
CREDIT
RESOURCES
Attorney General--Consumer
Division
1400 NCL Tower
St. Paul, MN
55101
(651) 296-3353 or
1-800-657-3787
MN
Department of Commerce/Financial Examinations
133 E. 7th Street
St. Paul, MN
55101
(651) 296-2715 or
1-800-657-3602
MN
Department of Human Rights
190 E. 5th
Street, Suite 700
St. Paul,
MN 55101
(651)
296-5663
Federal
Reserve Bank
90 Hennepin
Avenue
Minneapolis, MN 55401
612-504-5500
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