Spouse Building Credit on Joint CC?

Anonymous · ‎06-02-2015

I've had a CC since I was 18, 25 now, my wife has never had a credit card, only a debit card. When I called the bureau today I was told she cannot view her credit score because she in fact has no credit, which I found odd because I was under the impression having a bank account and a debit card provided you with at least some sort of credit. Irregardless, I dont use my CC much so never bothered adding my wife to it, I added her today but will she start gaining credit being on a joint credit card? We are wanting to buy a home soon and I am concerned with her not having any credit that even if my credit score is mid 700's we will be denied, thoughts?

Callandra · ‎06-02-2015

Yes, adding your wife (either as a joint or AU) will help her build credit! After 6-12 months with that account, she can start applying for cards of her own. It will take 6 months of [reporting] history for her to generate a score/report. She might also want to look into secured cards to build her file.

Not sure on the mortgage question (will let the experts comment) but good luck to both of you!

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Pway · ‎06-02-2015

@Anonymous wrote:
I've had a CC since I was 18, 25 now, my wife has never had a credit card, only a debit card. When I called the bureau today I was told she cannot view her credit score because she in fact has no credit, which I found odd because I was under the impression having a bank account and a debit card provided you with at least some sort of credit. Irregardless, I dont use my CC much so never bothered adding my wife to it, I added her today but will she start gaining credit being on a joint credit card? We are wanting to buy a home soon and I am concerned with her not having any credit that even if my credit score is mid 700's we will be denied, thoughts?

Having a debit card does not help to build credit. Having credit cards and others help in the build of credit. Many people believe that a debit card helps but that is not the case. When the underwriter goes in and review they is going to know if this was her account or an authorized user account. I would suggest she begin to get some positive tradelines reporting to the CB's. Maybe opening a account with a credit union and starting off with a secured card or getting a store card. I would also suggest checking out capital one as well.

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Anonymous · ‎06-02-2015

If you are planning to buy a home jointly and she has no credit, I would wait until she can build up a credit file with multiple accounts on it.

Do you only have one account or multiple accounts. What are the credit limits?

Anonymous · ‎06-03-2015

Here to answer the mortgage question, what stare are you in? In some states she can be (has to be, actually) jointly titled to the house even without being on the loan. In others she has to qualify on her own to be on title to the house.

There is a big difference between a joint and authorized user. Are you sure you added her as joint? Usually with joint she'd have to qualify on her own to get the card. I'd second the recommendations of others here and try to get her a secured card. My FI was in a similar spot as you and she went straight into a Cap1 unsecured with zero history, so try that route also. Good luck.

Anonymous · ‎06-03-2015

Thanks! Yes after I had read everyones posts about the cards I have looked into getting her one so she can start, I assume if for some reason she does run into issues getting approved I could cosign for her since my credit is near perfect and 5-6 years old?

Anonymous · ‎06-03-2015

We have a checking, savings, and one CC account, but thats it. The credit card is 5-6 years old and never paid late on it, the limit is only $1000 right now, I've never had a need to increase it before until recently when I learned its counterproductive not to have the limit raised when it comes to applying for a homeloan, wish I had known that earlier because I'm assuming they are going to want a longer history than one month of an increased credit limit to $5000?

Anonymous · ‎06-03-2015

JB002, after I read your post I went back and looked and no she is not added joinly on the account so I am going to have to try and add her jointly or just have her apply for a seperate CC from one of the banks other people have recomended on this thread. We will be buying a home in Texas so if you have any insight to the specific regulations your refering too they are welcome. An added bit of information here will be I am getting a VA loan as I have recently seperated from the military. My two biggest concerns at this point are her lack of any credit at all if it comes down to her credit needing to be reviewed on the home loan, and a gap in employment history. I will be continuing my education in Texas and receing BAH (Basic Alowance for Housing) which will be more than enough to cover the mortgage though from what I understand the BAH is not taxed and therefore cannot be considered income when applying for a home loan? My wife will continue teaching, though she will be compensated higher than she is here in North Carolina if my BAH is not considered income then it will be her income thats the qualifying factor for the home loan correct?

Anonymous · ‎06-03-2015

Cosigning for her card is basically the same idea as adding her as AU. Being an AU will help her score but I don't think by itself it will be enough to build her credit.

I am about 95% certain that Texas is a state where she can be titled without being on the loan. I am not 100% positive however. Any loan officer who originates in Texas will be able to tell you immediately. I'm also not that familiar with VA as my experience is with agency loans, so you'll want to consult with a VA loan officer.

Lenders do not care about your credit line increases or how long you've had the larger line for. They will ask about inquiries (or HPs as they are called here) only to make sure there are no new trade lines that haven't reported yet. Other than that they don't care. I'd say the CLI would only help your FICO which always matters, so go for it.

I'm not sure how your BAH works, are you still considered employed? Or not? Usually housing allowance would only be considered if you've had it for the past two tax years and if it's received as a part of your employment. Then again I'm not too familiar with VA so they might look at it differently.

If she has a new job in Texas and can demonstrate proof of income with at least 30 days on the job, her income should be OK to use but she'll also need to have credit and a FICO so that she'll be allowed on the loan. This is why it's crucial to get her started with her own cards now.

Good luck and sorry I can't be of more help on the VA stuff and Texas loans in general.