topic Re: Help, Need Advice on how to build wifes credit in Credit Card Applications

Help, Need Advice on how to build wifes credit

Anonymous — Thu, 06 Oct 2016 14:03:09 GMT

So probably not an unsusal situation.

I have stellar credit, over 800 across the board and own a home have several credit cards with zero balance and never been denied a credit card. Unfortunatly, I thought my wife would be in the same boat since she shows up as 780-800 across the board and is an authorized user on all of my credit cards.

Unfortunatly, she just applied for the Chase Sapphire Reserve (I just got the card and love it) and she was denied due to a lack of individual credit history. We were a bit concerned so I suggested that she apply solo for the Discover IT card for the net 3% return after a year and she was denied for that as well for the same reason. The third time was a charm with the Citi Double Cash at a 16% apr and $5600 credit line.

Do any of you in the community have suggestions on the best way for her to build her individual credit? Specifically, how she should approach card balances and a plan for other cards down the line to maximize building her individual credit quickly? We normally dont carry a balance, but should she carry a small balance on this card to show that she can manage credit?

She has a great job and makes $90,000 a year, but clearly we were way too lax on building her personal credit since we dont open cards often and never really thought about it. In fact the first new credit card I opened was the Sapphire Reserve after several years.

Any advice would be appreciated.

Thanks!

Re: Help, Need Advice on how to build wifes credit

Anonymous — Thu, 06 Oct 2016 16:41:07 GMT

Ok, she got the Citi DC so that's a great start. If you don't have a problem with Cap One, they've got the Quicksilver Visa Sig and Venture Visa Sig, which are some really awesome cards (I believe the minimum SL on these sig cards is $5K, so that would be a good option). She can try Cap One's prequalify site, and see if she's got any offers. A solid offer will say that she's "Preapproved", and it will let her see the terms/apr that is in the offer. Cap One now has a new policy where you can only app for one card within a six-month period, so heads up on that one.

Since she was turned down by Chase and Discover (I'm familiar with these banks), I guess I would maybe recommend Amex (as long as she has a clean file). She's got the income to support an app with them (and can also include your income if over the age of 21), so that would be an excellent bank to get in with.

Two cards in her name as the Primary Cardholder would be ideal. DW needs to use her Citi card (btw excellent SL and APR), and, until she has additional card/cards, report a zero balance on her statements each month. This new card will definitely start her on her way! Good luck!

Re: Help, Need Advice on how to build wifes credit

zerofire — Thu, 06 Oct 2016 18:57:50 GMT

I am guessing that all of your wife's history is being an AU. This means that as an individual her credit does not exist. Whenever she charges something it is your responsability to pay for it since your the Primary Cardholder. Banks are getting smart to the AU trick and can clearly see which accounts are primary and which are AU. Chase likes to do funky underwriting and is rather strict. Discover likes to see history but not too much since they dont like competition. Citi as you might have noticed likes to take calculated risks and thats why they jumped at the opertunity with a nice 5600 CL. Most of theirs are 1000-4000 on the first issue. A good idea would be to go ahead and have your wife get her own cards and loans. If you look at the credit score you will notice it is slightly lower since it is populated by AU and not actual accounts. If a bank pulls it then most AU status accounts will flat out be removed resulting in a blank report and a confused representative. My recomendation is to have a more equal distrabution of cards either by having your wife apply for the same cards that she already has or to stagar the cards so some are with her primary and some to be primary with you. That way you can be AU on her cards. Basicly now she just needs new primary accounts that she can show that she is responsable on.

Re: Help, Need Advice on how to build wifes credit

Anonymous — Thu, 06 Oct 2016 19:42:18 GMT

Thanks. That makes sense as only Credit underwriting can make sense.

Do you think it would be wise for her to open up a 2nd credit card or for us to hold off for now? I understand that multiple accounts can hurt your credit score for a period of time, but we arent that concerned about that in the short term.

Ideally, we want to build it up her individual credit as qucikly as she can so that she wont be in a position to be declined for a premium or any credit card down the line. Would be a shame to not be able to take advantage of a Credit Card offer like the Sapphire Reserve.

Thanks again for your help!

Re: Help, Need Advice on how to build wifes credit

zerofire — Thu, 06 Oct 2016 20:52:18 GMT

If you average the credit score in the range you provided it would be 790. Its fine to do an App Spree and I recommend a minimum of 750 for that. Your AU for her is holding her score up for now but have her select a few cards to apply for. If you select right you can get 2 more ish. Try to do all the applications on the same day in the order you want them. Research the bank that issues the cards to find out their requirenments and what credit report they will be reading. You can literally plan the applications to get the best results by having diffrent reports be used for diffrent cards. Look for banks that are easy to get started in like BoA, Capital One or banks that use calculated risk like Citi as well as CU's which are consumer friendly. You can even try isolated lenders like Blispay. I can imagine a Regional Bank might want to play with her purely by credit score. Once the cards are open they need to grow in age and showing good payments. This will become her history and after 2.5-6 years it will be solid enough to withstand shocks.

P.S. The AU issue is because you can add anyone as an AU including people you don't know and never met. Some geniuses actually do that for money to have positive accounts report and the banks got smarter to stop that from happening. Its nothing personal.

Re: Help, Need Advice on how to build wifes credit

echoecho — Thu, 06 Oct 2016 22:11:15 GMT

Great thread with AU issue but how does CCC treat co owners on a cc. CUs allow co owners on a cc, is it treated as AU or individual. Thanks.

Re: Help, Need Advice on how to build wifes credit

zerofire — Thu, 06 Oct 2016 23:30:52 GMT

@echoecho wrote:
Great thread with AU issue but how does CCC treat co owners on a cc. CUs allow co owners on a cc, is it treated as AU or individual. Thanks.

Co-owner is a CU specific term used by some CU's to discribe the two people who share a joint account. Each person should be a member of the CU independently and is a co-owner of the joint account. These accounts report as Primary for both people's reports. There is usually a limit of 2 people on a Joint account. There is no limit on AU's except what the bank or CU allows. CU's like to use diffrent terms for the bank terms of Individual Primary, Joint Primary, and Authorized User. Commonly the terms are Member, Co-Owner, and Authorized User.

Re: Help, Need Advice on how to build wifes credit

joltdude — Fri, 07 Oct 2016 00:38:57 GMT

THis is a situation i would have probably taken the Joint offer that sometimes discover offers for an account....even still i would have applied for another card as well..

(Even though she has a good score, its not a strong file... id wait a little bit.. UNLESS your applying for a card that can be a JOINT app.. not a AU)

Seems that few banks offer Joint accounts these days... But Credit Unions still do.....

Congrats on the DC .. ....

Might still want to go for another card or 2 later down the road (non joint) even if it has a reoccuring sub that autopays from a joint checking account....

I setup something like this for my mother... but she did have the advantage of keeping one card in her name and it didnt fall off... so BOA gave her quite the offer

and its basically only pulled out once a month or so to make a few purchases...

Not a goal to up score, but in this case,, up the quantity of trade lines in HER name...

Maybe even a Secured Share Loan might work .. (In HER name only).... Your thickening the file, which may fluxuate her score, but in the end it will probably increase

-J

Re: Help, Need Advice on how to build wifes credit

echoecho — Fri, 07 Oct 2016 00:38:42 GMT

Tank you for the reply. As the OP have stated I am also trying to have hh6 establish a solid cr on her own. She have been AU on my mortgage/cc and have solid score for years. Is it better for her to stand on her own cr to take the shocks? More specific question is my route just as good as her apping cc on her own?? I know most big box CCC do not allow co owner.

sRe: Help, Need Advice on how to build wifes credit

joltdude — Fri, 07 Oct 2016 00:47:42 GMT

I'm not a fan of pulling the bandaid off by cutting off the AUs all at once... Some issuers still take into account AU's at the same address.. but not as meaningful as it once was......

Others may argue .... but my thought is to shore up her credit thickness, than perhaps take off a few aus (not all) ... rinse and repeat, perhaps every year..... Id still keep her as an AU on a few cards... because its gonna take time ....

Were building credit vs rebuilding..... know it might seem late but if something happens... ideally id want at least 3 cards (eventually) in her name.. perhaps with you as the AU... but as Zero said.. your going to have to build it up...

Re: Help, Need Advice on how to build wifes credit

Anonymous — Fri, 07 Oct 2016 00:54:40 GMT

So quick followup-

We took the advice given and she was approved for an Amex Blue card as well. Decided against any other cards with annual fees since she already have the double cash and that is fee free. The idea is the build her file so that she can apply for a card with a great signup bonus down the road.

At this point she has the Citi Double Cash and the Amex Blue that are solely in her name so we plan to just hang tight for a while.

At what point do folks think it would make sense to apply for a premium card like the Sapphire Reserve, SPG Amex etc that have some additional perks?

My gut says it would be at the end of the next year, but would love whatever input people might have.

Thanks again!

Re: sRe: Help, Need Advice on how to build wifes credit

joltdude — Fri, 07 Oct 2016 00:56:26 GMT

Im not a fan of carrying a balance.... but ... she should wait for the statement before paying off one of her own cards at least.... there needs to be some utilization and PIF before statement does NOT do that... Can pay all the other cards in full anytime (some like before statement, others like after...) There are people who know the percentages and stuff better than I do.. I also expect Discover might let her apply solo after 6-12 months with the Citi card... If shed like a discover (and in her situation its a good card to go for once the Citi card has established a bit)... id consider applying for discovers free monthly credit scorecard.... my rationale is twofold.... Discover gives you a real fico score for free.. you can see a snapshot of a report... PLUS... she may get targeted offers... (do NOT take them for at least 6 months however... still think it be a denial untill then)

(Zero) Whats your take on it?

Re: Help, Need Advice on how to build wifes credit

joltdude — Fri, 07 Oct 2016 01:05:10 GMT

@Anonymous wrote:
So quick followup-

We took the advice given and she was approved for an Amex Blue card as well. Decided against any other cards with annual fees since she already have the double cash and that is fee free. The idea is the build her file so that she can apply for a card with a great signup bonus down the road.

At this point she has the Citi Double Cash and the Amex Blue that are solely in her name so we plan to just hang tight for a while.

At what point do folks think it would make sense to apply for a premium card like the Sapphire Reserve, SPG Amex etc that have some additional perks?

My gut says it would be at the end of the next year, but would love whatever input people might have.

Thanks again!

Didnt see this...

End of next year would be my guess too.. I know Chase likes a full year of experience with a CC ..... Yes some have gotten earlier....

Esp seeing the reason they declined her.... I waited almost 2 years but a year should be fine...

About this time next year would probably work great.....

Still would consider the secured share loan in her name... Yes i realize shes on the morgage but ... again this is a tradeline in her name with an installment loan.

Hoping for some other tradelines that are entirely in her name....

Like to hear how it goes....

(On the Citi DC.. you may be able to get a soft CLI online but you have to read it carefully after 6mos)

(Also id aggressively try to go for the CLI increases on the Amex as well... The 61day 3x thing doesnt work quite like it used to but id give it a go... also SP's)

Idea is to show experience with higher CLs ... esp for the CSP/CSR.... CSP used to be a min of 5K .... Think CSR is 10K min limit (for approval)

Re: Help, Need Advice on how to build wifes credit

SouthJamaica — Fri, 07 Oct 2016 23:46:56 GMT

@Anonymous wrote:
So quick followup-

We took the advice given and she was approved for an Amex Blue card as well. Decided against any other cards with annual fees since she already have the double cash and that is fee free. The idea is the build her file so that she can apply for a card with a great signup bonus down the road.

At this point she has the Citi Double Cash and the Amex Blue that are solely in her name so we plan to just hang tight for a while.

At what point do folks think it would make sense to apply for a premium card like the Sapphire Reserve, SPG Amex etc that have some additional perks?

My gut says it would be at the end of the next year, but would love whatever input people might have.

Thanks again!

I don't think she needs any more cards at this point.

With the 2 cards she'll be able to get the score up nicely.

Just let 1 report at zero, and the other report at 5% or so.

When her score is soaring then she can apply for whatever she wants but I wouldn't add cards unless they really mean something.