01-08-2013 09:29 AM - edited 01-08-2013 10:25 AM
Just wondering if there is a rhyme or reason on when it's ok to include spouse's income when applying for credit. Or is it generally, use only your income, unless it is specifically stated that its OK to use spouse's income. That 'other income' box I see on most apps is really not that clear on what is, or not, considered as other income.
01-08-2013 10:22 AM - edited 01-08-2013 10:24 AM
OK, I just read somewhere that one can no longer use spouse's income because of the new law, Dodd-Frank. This law supposedly takes away the ability for housewives to apply for credit using husband's income. It became law in 2009. What I find weird is that in 2011, I was actually told to use spouses income when I applied for GE cards in 2 different stores. Maybe the rule only applies to cards issued by banks.
Im really wanting a high limit credit card this year, and was looking for a way to boost my chances. DW & I both make over $55K, our mtg paymnt is $1320, which may be hurting my debt - income in the eyes of a CCC's UW. I guess Ill know for sure in a few months.
Thanks for your input.
01-08-2013 10:43 AM
Certain posters here like to argue about the legality of using household income.
HOWEVER, IME.... it's a good FICO that gets you a high limit. I've reported HHI and my Indi Income and regardless of the income I report, I still get the limits and increases that I want typically because my FICO is decent (700-740).
The CARD Act/Dodd-Frank only says an issuer cannot ask specifically for household income.... but that an applicant may choose to use household income on an application...
so partake in your freedom as an American and use HHI :-)
or if you're prude, scared, and can't handle credit.. use indi income...
totally UP TO YOU... per the CARD Act.
And for those nonbelievers, check the spec language of the CARD Act; you may be surprised.
:-D Best of luck!
01-08-2013 11:38 AM
01-08-2013 11:40 AM
hahah thanks? :-)
01-08-2013 11:53 AM
Legality aside, I think it's a little disingenuous to provide inflated income. This is YOUR card so you should provide YOUR income. If I put $250k income as a 21 year old kid living at home, would you say that's an accurate depiction of my income? I wouldn't think so.
But all that's my opinion. I really don't know if you're legally allowed to use household income or just individual income.
01-08-2013 12:08 PM
01-08-2013 12:09 PM
My personal opinion is that HHI should be allowed if you reasonably have access to those funds. Housewives are a good example. Also, when UW is considering debt to income ratios, I think its reasonable to use HHI, especially if both spouses share responsiblity for bills, ie mortgage.
Is it legal? Maybe, maybe not. Im here looking for more clarrification on the issue, as I always want to do whats legal. But my personal opinion is what it is. I will probably end up asking whatever card issuer I decide to app for.
01-08-2013 12:14 PM - edited 01-08-2013 12:15 PM
You guys are touching on a recent change to regulations promulgated under the CARD Act. Last year, housewives or house husbands technically couldn't get credit cards because they couldn't report that they have ny of their own money. The CFPB changed the rule at the end of last year to include income you have access to - basically, household income. So, where before it was technically illegal to report HHI on a credit app, it's ok now.