How to Establish Credit

Many young adults want to establish a credit history as soon as they start working. One way to accomplish this is to start with a low-cost bank card that carries a low credit limit. While lenders cannot discriminate on the basis of sex, race, or national origin, they can ask about your income, job history, and other matters that may affect your ability to repay a loan.

Young adults are not alone in needing to establish a solid credit history. Married couples, with joint accounts, may need to re-establish credit after a divorce or the death of a spouse. It is a good idea for both spouses to establish individual credit histories before such events occur. If you are divorced or widowed, be sure to report your new status to all your credit card issuers and establish credit in your own name, if you have not already done so.  

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