GlamourByLBD Note: In watching the news on the financial crisis and talking with my customers, I am finding that everyone is affected in some way or another. As most of my readers are women, it seemed like a perfect time to have my associate, Irene Moustakas, share with us her ideas, particularly regarding women and credit.
Women and Credit
Women certainly have come a long way in regards to building independent finances, credit and awareness. After all, it wasn’t until a few short decades ago that a woman’s income was even accounted for in a home mortgage application - banks just assumed that the woman would likely have children or take care of the parents and would stay at home. It’s important for women to be aware of maintaining independence and knowledge in anything financial so that educated, solid decisions can be made; relying on anyone else is not an option.
In my business as a mortgage broker, I’ve witnessed two very different scenarios when it comes to a husband and wife building their credit and financial lives together. The first is the woman that uses credit and handles credit but whose name and social security number is not tied to it. This may be the woman that married an already-established man, but who handles the spending and paying the bills in the house. She’s assuring that credit is being built properly, through good spending and making timely payments and yet she’s not building any of her own credit. This is detrimental for any future purchases she may need or want to make on her own. Being an authorized user on a credit card is insufficient and has nothing to do with building credit.
The other side of the coin is the husband and wife team that only carry joint credit and so the one’s actions is always tied to the other’s actions. I’ve had both men and women come to me with a situation where their ex-spouse stopped paying the bills and so both of their credit scores plummeted. It doesn’t even have to be as drastic as this - one of them may have simply forgotten to pay the bills, but it still affects both of their credit profiles. If just one of them had excellent individual credit, then that would at least balance the bad joint credit and that individual person could seek a needed loan at a better interest rate.
Always monitor your credit - I personally pull my credit report once a year just to make sure nothing is incorrect and to see if there’s anything I can do to improve my score.
©2008 Irene M. Moustakas
About the Author
Irene Moustakas, Granite Financial Real Estate Loans, Inc.
Irene Moustakas is a Real Estate Loan Consultant with Granite Financial Real Estate Loans, Inc. based in Cupertino, CA. She provides her clients with education, financial guidance and mortgage strategies that coincide with their financial goals. She is committed not only to her clients’ success but to providing calm support throughout the often complicated and confusing loan process. Experience her expertise with a free consultation. Call her at 408.257.1681 or visit her blog at www.loansbyireneblog.com for more information and tips.
