Some tips for your good credit

AS THE OLD saying goes, no man's credit is as good as his money.

And yet we live in a society that judges our ability to get credit - and in many cases a job, insurance and even a security clearance - based on our good credit behavior. Following a recent column about the FICO credit scoring, many readers had questions about their credit situations.

* One woman wrote: "My husband and I have been married for 52 years and have lived in our house for more than 40. We paid off the mortgage decades ago. All of our credit is in his name. A banker advised that I should do something to create a favorable credit history in my name. Should I?"

Each person has credit scores based on information in his or her individual credit files. In this person's case, I would recommend that her husband add her to his credit card accounts. With years of good payment history, the positive information will flow into her credit files.

However, if your spouse doesn't want to add you to his accounts, get a secured credit card, which is backed by money you have in a savings account. If the minimum required deposit is $200, this means you can charge only a total of $200.

Check with your bank or credit union to sign up for a card, or you can find a list of secured card issuers at Bankrate.com. Shop around to avoid cards with high fees, and make sure the issuer is reporting your history to the credit bureaus.

* Some people wish they had this problem: "My wife and I are 67 and 70, respectively. Our credit scores for the past 15 to 20 years have ranged from the 790s to low 800s. The only outstanding debt that we have is our mortgage, which we handle quite easily and have never been late with a payment. All our bills are paid on time and we never carry a credit card balance. What prevents the score from going higher?"

The score range for FICO is 300 (poor) to 850 (excellent). Lenders or companies using credit scores set the ranges they consider good, bad and ugly. But generally, having scores in the range this couple has will get the best rates available, barring any other negative financial issues. So really, it doesn't matter if you have a 790 or 850, you are credit golden. Don't sweat the difference between great and excellent.

* This situation facing one couple is a common one and I wanted to share their story because it will help others:

"We have great FICO scores and even received compliments on our score by a loan officer last time we refinanced our home. After experiencing a tragic loss a few years ago, our son turned to drugs and trashed his credit. He has thankfully recovered and now, four years later, has a great job, new wife and baby. But his credit score is 613 and he has been turned down repeatedly for mortgages, cars and credit cards.

"He paid off a few of the lower balances showing on his credit report. We have offered to help him pay off some of the higher balances, but he said his negative marks will go away after a few years. How true is this? We want to help get his credit straight so they can buy a home and move on. On a side note, we will not co-sign for him as we do not want to tarnish our own credit."

I'm so glad they added they would not be co-signing. And negative credit information is supposed to be removed after seven years. A bankruptcy can stay for 10 years. For the son, I would recommend the same as the wife with no credit. Get a secured credit card and use it a few times. Don't charge much. If the limit is $200, only charge about $20 or $30 in one month. Pay all of the charges. After about a year, apply for a traditional credit card. Just one. Repeat the same behavior and eventually he will build up a better credit profile.