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Stay at home mom using household income on loan application

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Stay at home mom using household income on loan application

My husband and I are trying to pay off some high interest credit cards with a personal loan. Unfortunately, he has pretty poor credit and all the income. I have fair to good credit, but zero income. Putting him on a loan application all but guarantees we’ll be denied, but obviously no one will give me a loan with no income. Can I use his as my own? What if we’re asked to provide proof? It looks like it’s a little easier to fudge this on a credit card application, but we need a loan rather than more revolving credit. Is this doable? Are there any banks/credit unions/loan sites that do this?
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Valued Contributor

Re: Stay at home mom using household income on loan applicatiob

Unfortunately, personal loans are very difficult to get when you need them, but completely easy to get when you don't need them.  Loans are vetted much more closely than revolving apps, so proof of income might be required.

 

It would probably be faster and easier to fix your husband's credit than apply for even more debt (loan) -- but a lot depends on how well you live by your budget, what your actual credit card balances/limits are, if you're late on anything, etc.

 

Getting "debt consolidation" loans are next to impossible -- I don't know ANYONE who has managed to get one when they're carrying very high credit card utilization.

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Re: Stay at home mom using household income on loan applicatiob

His credit does need to be fixed, but that’s kind of low on the priority list at the moment. We’re throwing money at these credit cards and not making any headway on paying them off, which is why we think a loan (that has an actual end date) would help. We’re fairly credit savvy, so I know it would take a couple years at minimum to fix his score, and our high utilization rate isn’t helping.
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Re: Stay at home mom using household income on loan applicatiob


ashyrae10 wrote:
His credit does need to be fixed, but that’s kind of low on the priority list at the moment. We’re throwing money at these credit cards and not making any headway on paying them off, which is why we think a loan (that has an actual end date) would help. We’re fairly credit savvy, so I know it would take a couple years at minimum to fix his score, and our high utilization rate isn’t helping.

Makes sense to me.  I went from 550 scores to 720 in about 7 months last year, so don't assume it'll take years to fix his score.  Might be much faster.  I'll likely go from 500s to 800 in 2 years or less total.

 

I am really doubtful about you getting a loan with no reported income, or attempted to report his income without him being on the loan.  I'd say your best bet is to cut spending as much as humanly possible) and look for alternative income methods like working part time for Uber or Instacart to throw more cash at the debt.

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Re: Stay at home mom using household income on loan applicatiob


ashyrae10 wrote:
His credit does need to be fixed, but that’s kind of low on the priority list at the moment. We’re throwing money at these credit cards and not making any headway on paying them off, which is why we think a loan (that has an actual end date) would help. We’re fairly credit savvy, so I know it would take a couple years at minimum to fix his score, and our high utilization rate isn’t helping.


I’d put both of you on the application. Joint application using both your credit. Then you can put all of the household income. If your credit is higher than his they probably will let you get the loan. YRMV of course. If you are able to do this I’d SD all your credit cards but one for monthly expenses for now. Good luck.



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