Credit Cards

[StillLearning]

I am working diligently on my CC UTI, and should make the 700+ club after paying off CC's, but would like to refi my mortgage later this year. 

My current lender does not report my mortgage or car loans with any CB.  Because of this my DH does not exist with any CB, we cannot even get a report after faxing in license, etc. to CB. 

If I apply for a joint CC account (after my scores are back up there) who's score would they look at for new CC?  Will my score alone (assuming 700+) be enough to qualify with anyone?  Haven't seen any information along these lines before, but thought maybe we could avoid the whole secured card/high fee scenario this way.  He apped for Cap 1 a few months ago, but was turned down, and I don't want to build up a slew of inquiries.  He should have nothing negative on his report either (if he existed that is) :  

Thanks.

[haulingthescoreup]

Don't go joint; don't go joint; don't go joint.

Stuff happens. One thing people don't think about is that if one spouse has a devastating medical or income setback, s/he might have to declare bankruptcy. You don't want to have jointly-owned CC's.

Many (not all, but many) CC's will report an AU (authorized user.) That person does not co-own the account, and doesn't have the right to make changes in it (request CLI's, etc.) but is allowed to use the card. As said, most of these will report on the AU's reports, and after some changes made in FICO 08 (which is barely being used anyway), they are counted. It will be enough to get him started and create a score, anyway. Then he can apply for something in his own name.

The traditional starter-outer used to be the BofA secured card. It's still a good card; there's just no telling how BofA will make it through the next several weeks and months. Joining a local credit union that offers cards is a terrific way to get started.

[StillLearning]

Would you say this rule still applies even after being married for 17+ years?  I guess unexpected medical problems could cause anyone to go into bankruptcy though.  I did make him AU on one card, but haven't done anything else yet.  I will get balances down under 9% then make him AU.  Thanks!

[haulingthescoreup]

Well, my feeling is that if you can get the same effect from AU status as joint, it just makes sense to do AU. I can see all sorts of scenarios where it's useful to be AU. One might be that the two of you decide that it would be useful to make a purchase on the card that would skyrocket the util. It might be because of a special low-interest deal, or rewards, or other gimmick. Meanwhile, one of you is getting ready to apply for something, including a job where they pull that person's credit report.

The high util is going to affect FICO scores, and also jump out at anyone reviewing the credit report. An AU could temporarily come off the card, keeping it from reporting to his/ her credit reports. A joint user is stuck with it.

And really, I never wish anyone bad, but we all know that things happen in marriages, even long-term ones. I can't tell you how many posts I've read where the member's credit was destroyed by the partner's/ ex-partner's use of the account. My feeling is that there should be no hurt feelings about cold, hard common financial sense when it comes to things like joint accounts. That being said, there are of course many couples (married and unmarried) for whom their joint accounts are fine. It's just that I've seen sooooo many posts about the bad side, and every single one of them says some variant of "if only I'd known...."

FWIW, I'm AU on my husband's Discover card, to mooch the length of history. He was perfectly happy to let me go in as joint, assuming that Discover would allow it, but there were no benefits that I would have gained, and many potential problems.

Dreadfully unromantic, I know!