I purchased a house about 2 years ago and at the time had a score of 742, but since then I got married and the wife had credit card debt. She was paying them off never missing a payment but she got pregnant and is not working. Chase did a random credit check on her and saw she had no income so they raised her APR from 7.9 to 39.99. They said that she was considered high risk. She recently was going to use some credit card plan to pay it off so the place told her not to pay it for a while and the credit card company will accept a lower payment. So, she stopped paying for 120 days and now it is showing up on my credit as late payments and lowered my score to 514. Can anyone tell me if this is right or what can I do?
Okay, first of all the FICO score does not take into cons...
Okay, first of all the FICO score does not take into consideration your occupation or income, that information could not have come from a credit check. Credit card companies raise rates for various reasons, the most common reason for raising the rate may be for missing a payment but they can also rate jack you for high utilization. There is something called universal default that congress is currently looking into where they can raise you based on your relationship with other lenders.
Secondly, unless your wife's credit and your credit are the same accounts, there is nothing that she can do to lower YOUR FICO score, even filing bankruptcy. Your wife's credit history does not become yours from marriage, if your credit score fell it is because of credit accounts that you agreed to be responsible for.
You really should have asked for advice BEFORE telling your wife not to pay her bills, you cannot hamstring a credit card company into agreeing to your terms. You need them more than they need you. CC companies always plan for a certain amount of loss and will twist your arm out of the sockets to get their money before selling the debt to collection agency after agency. If possible, your wife needs to call and you need yo make an effort to bring the accounts current you have probably just multiplied that debt with late fees and ?over limit? charges. She can ask that they be reaged they may offer her a repayment plan because their first business is getting their money. However they may close the accounts till paid off. The one thing you don't want to do if you can help it is allow the debt to be sold to a CA.