How can you begin credit life after your spouse has expired
Problem
My husband has passed away on January 27, 2011. My husband used to look after the bills when he was alive. As far as I know, he used the credit cards quite responsibly. But now I have to start handling all the credit cards myself. In short, I have to start building my credit on my own. However, my friends are telling me that it will not be an easy task to accomplish. I have few questions in regard to starting my credit life. What exactly will I have to do to build my credit history? Can I use my husband’s credit cards or will it be better to take new ones? I want to ensure that I start my credit life at the right note. I don’t want to get into debt problems in future. Thanks for any information.
Solution
Before answering your query, please accept my deepest condolences for your personal loss. You are going through a difficult time but with God’s blessing, you will overcome it. Now getting back to your query, you can use the jointly held credit cards. However, you can be liable for your late husband’s debt based on the state laws and the terms and conditions of the credit card contract. So, I would suggest you consult an experienced attorney regarding this issue.
If you are a co-signer of any credit card, then you’ll be eligible to use it. However, in such a situation, you’ll also have to make the bill payments. In case you are an authorized user of a credit card, then you’ll need to inform the creditors about your husband’s death. You can request them to allow you use the card. The creditor will decide whether or not to allow you use the cards based upon your credit worthiness. If you have no income at present, then creditors may decide to not let you use the accounts and tell you repay the debts.
Contrary to the popular belief, it won’t be very difficult for you to build credit history. You may already have some credit history. The reason is, by law your creditors need to report the activity of both the account holders simultaneously to the bureaus in case of joint accounts. For example, if your husband has operated on the joint account, then your creditor will report this activity on both of your credit history. This in turn implies that you have some credit history too.
You can apply for a credit card to build credit history too. However, I would advise you to take a low rate card. You should also use an APR calculator to compute the annual percentage rate on the card. This will help you realize whether you can afford the card in the long run.
Finally, when you have credit cards in your name, ensure that you pay the required bills on a regular basis. Avoid making late payments and applying for numerous credit cards. Never exhaust the credit limits. It will be best if you can keep the credit utilization ratio within 30%. This will help you maintain a healthy credit history.
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