5 Ways For Women to Build Credit

Written by on August 21, 2012 in Money - No comments | Print this page

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No matter which stage of life you’re in, building a healthy credit score is an important step to take towards financial freedom. The world of credit can be overwhelming and leave you feeling uncertain, but there are ways that you can overcome this uncertainty in order to become more comfortable with building your credit, which can open doors for you financially unlike anything else. Many women find out that no credit is just as negative as poor credit when they apply for a loan later in life, or need to create accounts in their own name after a divorce. If you’ve never given much thought to credit, consider these easy steps in order to build your personal credit score.

Get Credit Cards

The first step to building credit has to be taking out an account or a few accounts. Many women prefer to open a credit card account with their own bank or credit union rather than someone strange to them, but sometimes shopping around can offer you interest rates that are better than your home financial institution. Don’t be afraid to comparatively shop, and even to barter a little with your prospects a bit before deciding on one account.

Don’t Go Overboard

Taking out two accounts is fine, but taking out eight will look bad on your credit score. Remember that each credit card application will make a negative impact on your score, and cards offered by department stores tend to be worse on your credit than those offered by banks and other professional institutions.

Don’t Rush It

If you’re gaining credit in an attempt to get away from shared assets with your husband or partner, take it as slowly as you can. Each account that you shut down will impact your credit score, especially if these accounts are lost in quick succession. Wherever possible, do everything that you can to close joint accounts slowly in order to keep your credit score from falling.

Educate Yourself

Perhaps the most important step to take as a woman within your financial situation is to be proactive with your education. Learn and understand the basics of your credit score, how it is used and calculated, and how you can keep yours safe in today’s challenging world of temptation. Check your credit score to find out what it looks like and decipher just how you can make improvements for the future, and then become diligent in your money management.

This guest post is from Allison with CreditReport.org.

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