Debt Free

Sadly, credit is almost a necessity these days. Just try your luck at Hertz or Avis without a credit card. Renting an apartment or spending a few days at the Marriott? Have fun if you’re not toting a Visa, Amex or Master Card. Ditto boarding a plane. It’s probably been years since a ticket agent at your local airport has seen cash slide over the counter in exchange for a ticket. It goes without saying buying a house will a bit tough for most without credit.

Given that you’ll find it difficult getting along in the world without credit, even if you’re loaded (rich, not wasted), here are some credit precautions you shouldn’t leave home without. Actually they have nothing to do with travel, but are at more of a macro level.

1 – Relying Strictly on Joint Credit - First of all, if you’re a married woman, and, like many, you have joint credit with your husband, look out. If he leaves, so will your credit. You actually have no credit on your own, as sad as it may seem. It doesn’t matter how long you’ve been paying bills on time if your credit is joint with your husband. As far as the husband goes, it’s not just a problem if he’s no longer around. You should have independent credit even if you have a fantastic relationship and will probably stay married until your 90. Why? Think what would happen if something untoward were to befall the husband, such as job loss, gambling addiction, or disability. If his credit were to suffer as a result, the family would have to rely on the wife’s credit.

2 – Adding Your New Beau to All Your Credit – Hey, it happens, you meet that special guy, fall in love, and get married or move in together. Congratulations! But wait! Not so fast. If your credit is spotless, do you really want to compromise that by letting your new man in on the fun? Actually no, you don’t. It’s much safer to keep as much of your excellent credit yours as possible, lest a mistake on Mikey’s part affect your credit too. Before he runs out and picks up that new Rough Country suspension for his Jeep, or hangs that new 50” plasma on the wall using your Visa card, nip it in the bud. He keeps his cards in his name, you keep your cards in your name. If something bad happens in the future, you’ll be glad you did.

3 – Not Taking Advantage of Your Husband’s Credit - Think about the flip side for a minute. You have little credit, but your husband’s has fantastic credit. Use it! I’ve written many times about the principle of leverage. Here’s another place where it can be used very effectively. Leverage your husband’s golden credit to build up yours. Again, it’s better to have both partners in a marriage have excellent credit. Here’s a way you can facilitate it. Using credit leverage in this way can get you good credit faster than you can get there on your own.

Hopefully, these little credit pointers can help some women out there avoid credit mistakes of others, lest you end up deep in debt, sadled with bad credit to boot.