topic Re: Housing cost with roommates. in Credit Card Applications

Housing cost with roommates.

Hex — Sat, 08 Aug 2020 12:53:13 GMT

I moved in April and my rent went up from approximately $1400 to $2400. I also started charging my son and his girlfriend $100 per week in rent (it was going to be $50 but they wanted the bigger bedroom). They pay me via Apple Pay. What should I put down on credit applications and CLI requests for housing costs? I am the one who actually writes the monthly check. Also if someone didn't pay me on time would that make difference? Both of their names are on the lease. I'm probably overthinking this but I want to know for sure because I want to do it correctly and be consistent especially when requesting subsequent CLI's from the same lender. I can't even remember what I put down for Disco a couple months ago. Thanks!

Re: Housing cost with roommates.

Anonymous — Sat, 08 Aug 2020 13:36:45 GMT

I would put down $2k because that it is what it is costing you out of your own pocket.

Re: Housing cost with roommates.

Brian_Earl_Spilner — Sat, 08 Aug 2020 13:45:16 GMT

Simply draw up a contract between you, your son, and his girlfriend outlining payment. It doesn't have to be fancy, but it can be used as proof, if needed, for what you pay.

Re: Housing cost with roommates.

M_Smart007 — Sat, 08 Aug 2020 16:13:44 GMT

I agree, put down what you pay. (your actual out of pocket)

Re: Housing cost with roommates.

Credit12Fico — Sat, 08 Aug 2020 21:03:34 GMT

Basically they use this information to assess your "debt to income" Put what you pay (2400)

But also include the money you collect from the "housemates" as income on top of any other income. This way they get a true reflection of your debt to income, not one that is inflated because you didn't include the income from "leasing".

Re: Housing cost with roommates.

Hex — Sat, 08 Aug 2020 21:37:09 GMT

I don't want to claim it as income at all because it's not and if it were I would need to be paying taxes on it. I pay all the utilities and everything else from renters insurance to dishwashing machine soap. I'm losing money on the arrangement so cringe at the idea of counting it as income.

Re: Housing cost with roommates.

Anonymous — Sat, 08 Aug 2020 21:40:28 GMT

@Hex wrote:
I don't want to claim it as income at all because it's not and if it were I would need to be paying taxes on it. I pay all the utilities and everything else from renters insurance to dishwashing machine soap. I'm losing money on the arrangement so cringe at the idea of counting it as income.

Don't overthink it

As the other 2 said, the actual out of pocket will do (2k)

Re: Housing cost with roommates.

Meanmchine — Sat, 08 Aug 2020 22:18:02 GMT

Which ever one you feel comfortable with. No lender is going to quibble over a couple hundred dollars in rent

Re: Housing cost with roommates.

Hex — Sat, 08 Aug 2020 22:24:11 GMT

I should have been clearer. They each pay me $100 a week so it's $800 a month of the $2425 a month I pay before the unities which are $600 a month and I pay all of those

myself. So it's $9600 a year and I thought that might make a difference to a lender.

Re: Housing cost with roommates.

Hex — Sat, 08 Aug 2020 22:25:46 GMT

They got the room with the walk in closet. In MA it's a great deal for them.

Re: Housing cost with roommates.

Phoenixupward — Sun, 09 Aug 2020 05:50:21 GMT

I would agree with @Anonymous 2k in housing costs is correct. I see that your BK was discharged in 2016 and as reflected in your credit card list, your rebuild has been awesome. I'm 2 years post bankruptcy and my rebuild has been seamless. More positives than negatives . I see that we share some of the same lenders such as TD, Navy, and Disco to name a few. I'm also a member of NASA FCU and I was wondering how long post bankruptcy did they approve you for their credit card? Will you please provide some data points as well? I'm trying to set myself up for the future in regards to which credit providers I will seek 24 months later. Thank you.

Re: Housing cost with roommates.

Hex — Sun, 09 Aug 2020 07:58:14 GMT

@Phoenixupward

The reason I list all my cards in my signature is in case it can help others post BK. When I first started coming to myFICO Forums my biggest question was: Who do I have a chance with post BK?

NASA is conservative. I joined them in January of 2018 because I really wanted that Space Shuttle card. When I joined I applied for it and was denied. I had opened a checking and savings account with them and did a $20 per week DD into the checking. In September 2018 I tried again and got the card with a $2K limit. I tried for the StarTrek Card about 6 months later (because I like StarTrek) but I was declined. Once you have a card with them you can get a SP CLI of 1K once a year. I did that last September and now the card is at $3K and hopefully $4K in

September. I might be able to get a bigger increase if I was willing to take a HP but I've never tried because the rewards aren't all that great compared to cards I have gotten since then. I'm on the 8 year plan to $10K.

I think my BK rebuild is good for a few reasons that are atypical:

1) The BK was the only negative on my report. (I had defaulted on a mortgage so long before filing that it had already aged off my report before I filed).
2) I never burned any credit card issuers so other than those who won't approve after any BK I had more options than most.
3) I found this site early in my rebuild.
4) I have higher than average income $165K+/- per year.

Here are some of my thoughts on my rebuild:

People get different results but PenFed has been great to me. They started me with two small limit cards (and there they sit because I won't take HP's for CLI's anymore) but they gave me a third card with a $39K limit in Jan 2019.

I really owe everything to Capital One they gave me my first starter card and my first two big limit cards. It appears I am maxed out with them now.

Navy was slow to warm to me but things are looking good there too. I

have 3 cards with them: Flagship, More Rewards and CashRewards (CashRewards started as securred nRewards $500 card). As of yesterday I got my last 2 Navy cards down to the lowest APR. I'm very pleased that I now have 3 great Navy cards with the lowest APR's. I need to update my signature because I recently got $4K SP increases on my CashRewards and More Rewards cards. I was able to join Navy because my deceased Grandfather was in the military (the Navy in fact). If you can get into NAVY you should.

Some of my approvals really shocked me especially my Propel and my $30K Venture.

I was also lucky to be rebuilding before the pandemic hit.

Any other questions I'd be happy to answer and if Mods think this should be a new thread they can move it since it's so off topic.

Re: Housing cost with roommates.

Phoenixupward — Sun, 09 Aug 2020 08:35:47 GMT

Thank you for your reply. I really like the Space Shuttle Card and the Star Trek Card as well. I know they are conservative and I have asked about their Secured Card but it never graduates so I've decided to wait. You are absolutely correct about PenFed. Last week I apped for their Power Cash Reward and was approved with a 17.5k SL.🙂. Like you, I was able to join Navy because of my deceased granddad's army service. They have been good to me. I started with the Secured Card, it graduated. In Feb, I apped for their Amex Card and was approved with a 7.5k SL. Last week I requested a CLI to bring that account limit to 10K. I have the TD Cash Card but I heard that all increases are hard pull and Im going to hold off. Thanks again for your advice and synopsis of your rebuild. I will be contacting you in the future for further advice. Stay safe.

Re: Housing cost with roommates.

Hex — Sun, 09 Aug 2020 09:42:48 GMT

You are doing great! If you have any questions in the future about any of my cards just let me know.
Also I just looked on my old reports and my Experian FICO 2 (the score NASA uses) was 670 the first time I applied and was rejected and was 670 the second time I applied and was approved.