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In my opinion, it might depend upon what types of credit she will be seeking in her name.
Being an AU on your card now provides her raw scoring benefit of your account history, and thus can be very helpful when apping where the creditor relies solely or primarily on a credit score. Usually lower-principal/CL accounts.
However, as the level of credit being sought increases, creditors are more apt to do a manual review of her credit report.
When they see an AU on her report, that automatically tells them that her score is not representtive of only her own risk based on her own history, and they have no way to back out the AU from scoring. Thus, it could make her score a bit less useful to them in their determination.
If a joint account holder, those concerns would not arise.
However, your current creditor may not simply allow addition of a joint holder, but may require closing the current account and opening a new, joint account, which could hit both of you with a hard pull and lowering of your AAoA by the addition of new account with zero age.
We're looking to get a mortgage in about 2 years so that'd be the next big thing. I can try and see if any of my cards will allow her to be added as a joint owner without closing the account and applying but I don't think 2 at least do. Does Capital One? Is it worth keeping her secured one with the small balance open and just charging something minor each month? Or should she apply for an unsecured card with a higher limit possibly? She does have student loans she's paying and current on. We're also not looking at stretching ourselves all that far with the mortgage payment.
leonardotmnt wrote: Is it worth keeping her secured one with the small balance open and just charging something minor each month?
Given that she only has that card in her name and what RobertEG said I'd say yes. She needs cards and accounts in her own name to build her credit.
@leonardotmnt wrote:Or should she apply for an unsecured card with a higher limit possibly?
Probably worth a shot. General recommendation is 2-3 cards for scoring purposes.
So her score will be most helped by 2-3 cards in her own name not counting the ones she's an AU on? I was just hoping we could avoid having 6 different cards between us if possible but if it'll help us get the best mortgage rate maybe that's the way to go.
She's had the secured one for maybe 3-4 years. Is it worth keeping with an annual fee of $29 to help with AAoA or if she can get a card with a higher limit would it be okay to get rid of that one? I ask because it's tying up a $300 deposit. We don't desparately need the money but I think I could make better use of it than Capital One. Thanks guys.
It would give her a TL, and save you money. Both good.
The only dowside si that the refinancing will result in a new account for you, thus most likely adding inquires to obtain the loan, and a new account in your report of zero age.
It will have some effect on your AAoA.
If you are willing to take the new account hit, it would most likely be favorable in other respects.