Frequent Contributor
Posts: 470
Registered: ‎02-07-2011
Re: Stay-at-home spouse... Good Credit Benefits?

FrugalRican wrote:

I think she needs to establish her own credit. Is she still working now?

Because a YEAR is a LOT of time to establish her own.


I get the AU route, I really do, but I don't see how that really helps the trust issue... but that's my opinion.


And you said she'll be a stay at home mom for a year, could be longer... could be less.

Point is, she's going to need credit and establish it responsibly. You are looking too much at the short-term and at just one small gap in time. Look bigger picture, longer-term.


God forbid something happens to you and all she has is a Crap1.

You two have time. If piggybacking off of you for a few months gets her better cards, then so be it, but after reading and hearing and seeing so many AU horror stories in the past... I'd be trying to work harder to get her own credit set up, rather than trying to bank off of mine.

Well, to answer some of your questions, consider she has some old open collections (not small ones either) we're waiting to stop reporting, all about 6 years old (past SOL). So if we get anything for her on her own, I'd prefer to wait until her score recovers (i.e. one rebuilder card is plenty). If all goes to plan, she'll be out of the work force for several years, give or take (and hopefully come out of it with a degree of some kind).


In the meantime, my income and credit should service all of our needs, but like you said, should something happen to moi, she'll need it.


So long and short, the plan is to keep her scores from tanking a mortgage later this year, and have her co-sign a car note in '13 or '14 (no hurry). By then, she'll have three revolving with perfect marks, a longer AAoA, and an open car note. Then we can get a prime card or two and add her to a re-fi on the house.


Again, plans change, but that's the plan.

(PS the trust part of AU comes from having her own card really. I thought she would be able to see account activity as well, but apparently not.)

"Credit is purely a cash flow tool. Thinking of credit as extra money you didn't have before makes it an EXPENSIVE cash flow tool."