Establishing credit for myself after sep/divorce

[AllysonB]

I am separated from H and am trying to establish individual credit instead of the joint credit we shared. I was declined on a card, but have very few bills. I am going to be a full time student and will be dependent on CS, maintenance, grants, and possibly student loans. I only put MY income (or what I am expected to make from grants, cs) but was declined because I think they are including all our joint debts, but it is in our sep. agreement that H will assume responsibility for those until I establish my career. What should I do? How does one establish credit for themselves in this situation. I am totally clueless on this.

[Sarah8Jane]

Originally Posted by AllysonB

I am separated from H and am trying to establish individual credit instead of the joint credit we shared. I was declined on a card, but have very few bills. I am going to be a full time student and will be dependent on CS, maintenance, grants, and possibly student loans. I only put MY income (or what I am expected to make from grants, cs) but was declined because I think they are including all our joint debts, but it is in our sep. agreement that H will assume responsibility for those until I establish my career. What should I do? How does one establish credit for themselves in this situation. I am totally clueless on this.

It sounds like you may need to start with a store card or a student credit card. Also, student loans will create a credit history.

[CarrieMF]

You need to make sure your name gets taken off all the joint debts or you will end up being responsible for them anyhow.

The problem with using grants, child support, etc as income is it isn't guaranteed income.

[Thystle]

You could try a small secured cc where you front the money and it is "held" for a period of time.

They usually have really sucky terms and %'s though.





The student loans will show up on your credit report when you get out of school and start paying them.

[KariM]

What I did was find a secured credit card and build up from there. When I graduated from grad school a car dealership was offering a special for new grads and that was my first solo car loan! :

It took about 3 years but I eventually managed to get very good credit on my own.

[shelbean91]

Not a single mom- but saw this on new posts.

Dh had filed bankruptcy several years before we were married, so we went to a seminar on how to rebuild credit. The suggestions I remember most clearly (this was back mid to late 90s, so a while ago) was find a good secured credit card (that reports to all 3 credit bureaus) and use that for a year - the higher deposit you can give, the better- ideally at least $1000. You earn interest on your deposit and get it back after a year. Get a secured loan from your bank and pay that back over a few months (he actually recommended taking a secured loan from one bank, using htat to start a secured loan at a 2nd bank, that to do a loan at a 3rd bank, that way you show 3 paid loans from your original money, but that was TOO confusing/hassle for me). Some of the larger car dealerships are able to push through more 'risky' loans b/c of the volume they do, of course, with the economy as it is now, this may no longer work. Store credit cards are ok, but they have high interest rates.

Within 3 years after dh filing, we bought our house with a normal interest rate. 2 years after that, we bought a car with a normal interest rate. not long after that, we were considered A credit.

[AllysonB]

Well see I have had a dept store cc before and paid it off. I am currently on H accounts (we also have a home loan together). We have joint credit, I have a good credit score also, so I wonder if I reapply for the cc after I've been removed would that change the outcome? I am going to remove myself from the accounts when I move out (hopefully VERY soon). I have no debts to my name except for the home loan. So I really don't understand why I was declined. It's very frustrating.

[CarrieMF]

So I really don't understand why I was declined

you have no guaranteed income

they look at total debt vs income ratio, even though you & dh are separated they would have included the debts that you are on jointly.

[Oh the Irony]

Originally Posted by AllysonB

We have joint credit, I have a good credit score also, so I wonder if I reapply for the cc after I've been removed would that change the outcome? I am going to remove myself from the accounts when I move out (hopefully VERY soon). I have no debts to my name except for the home loan. So I really don't understand why I was declined. It's very frustrating.

Are you a joint user on the accounts or an authorized user? Easy to get removed if you are an authorized user but if it is a joint account they won't just take you off.

It is frustrating. I have about $6k in debt. It is all at high interest rates. I've been making the payments myself for the last three years. I applied to my credit union to consolidate it. They won't take my child support or spousal support into consideration because it is not court ordered. Never mind that I have proof of having been paid it for the last 3 years!! Never mind that people bail out of court ordered support... I could get it all consolidated at 10.75%. I'm considering writing a few letters.

www.creditboards.com are a good resource and would know what secured cards are available.