Many spouses getting divorced suddenly become aware that they do not have a viable credit history. This status especially impacts stay-at-home parents or persons who have long been out of the workforce for any number of reasons.
The Consumer Financial Protection Bureau recently lifted a restriction that prevented stay-at-home parents or other dependents with access to money, but with no income of their own, from obtaining credit. Credit card issuers now must weigh the household income rather than individual income when an individual applies for a credit card under his or her own name. This also has an impact on college students who remain financially dependent on their parents. This part of the provision could potentially be abused, so it is necessary to provide good guidance to college students seeking credit. It is also necessary for spouses looking for individual credit to be highly aware of the terms of repayment and its impact on marital property.
Each persons should order a copy of his or her credit report from three nationwide consumer reporting companies: Experian, Equifax and TransUnion. The Fair Credit Reporting Act entitles you to receive a free copy of your credit report from each of these three companies once every 12 months. To order your free annual report online contact www.annualcreditreport.com or call 877-322-8228.