topic Re: Married Couple - Update Income Credit Cards/Mortgage Pmt Amount Question in Credit Cards

Married Couple - Update Income Credit Cards/Mortgage Pmt Amount Question

ScoreUpScaleDown74 — Fri, 12 Mar 2021 17:25:21 GMT

If I update income to possibly improve credit utilization percentage, should I do each individual's account with only their income or joint? Where it says mortage/rent payment should I put full amount or a portion? I make significantly more (2.5x+) should I list more of the mortgage share on my update? In practice our funds are all comingled.

We have high credit utilization as the reason our scores are consistently 710-756. We carry CC debt which we're finally able to pay down some. I have been holding a decent amount as cash because of the pandemic. But we're making progress paying down after having 6 cards maxed across the two of us.

We are a long-time married couple. All cards are in individual name. One Amex spouse is authorized user on my card. Have not updated income likely since opening the cards (many years). Both of our income has increased. Spouse is a W-2 employee. I own a business. No purchases imminent.

Re: Married Couple - Update Income Credit Cards/Mortgage Pmt Amount Question

Bradac56 — Fri, 12 Mar 2021 17:38:58 GMT

I could be wrong but I think when they ask for income they mean the cardholder not the joint number.

I would always put the exact rent/mortgage number down. Keep in mind when they HP you they will get those numbers.

Re: Married Couple - Update Income Credit Cards/Mortgage Pmt Amount Question

Jnbmom — Fri, 12 Mar 2021 17:41:46 GMT

@Bradac56 wrote:
I could be wrong but I think when they ask for income they mean the cardholder not the joint number.
I would always put the exact rent/mortgage number down. Keep in mind when they HP you they will get those numbers.

Most apps ask for "household " income not individual income. Also just put down total mortgage payment not portion you pay .

Re: Married Couple - Update Income Credit Cards/Mortgage Pmt Amount Question

Bradac56 — Fri, 12 Mar 2021 17:45:35 GMT

Exept OP is not asking about an application. This is just an update to the income and rent status.

EDIT: Also depends on if the card was opened as a single or joint application. If joint then both incomes.

Re: Married Couple - Update Income Credit Cards/Mortgage Pmt Amount Question

disdreamin — Fri, 12 Mar 2021 18:40:47 GMT

I always put household income and full mortgage on credit card updates. The only times I didn't include my SO's income was when I was financing vehicles in my name only. Then I put down my income only, but still indicated the full mortgage amount.

Re: Married Couple - Update Income Credit Cards/Mortgage Pmt Amount Question

K-in-Boston — Fri, 12 Mar 2021 18:47:36 GMT

HHI is typically permitted (applications and update requests will specify this) if you have reasonable expectation of access, just be mindful that each lender will have their own criteria if asked to furnish proof. With a married couple filing a joint federal return, this should not create an issue if an IRS Form 4506-T is requested. For a mortgage, I always include the full amount including additional escrow as that is the amount of the monthly obligation shown on my credit reports. If you're including joint income, I would include the full amount of rent or mortgage.

Re: Married Couple - Update Income Credit Cards/Mortgage Pmt Amount Question

FlaDude — Fri, 12 Mar 2021 19:09:09 GMT

@ScoreUpScaleDown74 wrote:
If I update income to possibly improve credit utilization percentage, should I do each individual's account with only their income or joint? Where it says mortage/rent payment should I put full amount or a portion? I make significantly more (2.5x+) should I list more of the mortgage share on my update? In practice our funds are all comingled.

Income is not a factor in credit utilization percentage as it pertains to FICO scores. Income does of course factor into DTI ratio, while that might affect getting approved for something, it will not affect your scores.

As far as what to what to put for income, I always use our combined amount. I make over 90% of our income, so DW would probably have a hard time getting approved for anything on hers alone.

Re: Married Couple - Update Income Credit Cards/Mortgage Pmt Amount Question

ScoreUpScaleDown74 — Fri, 12 Mar 2021 19:50:44 GMT

Thank you for this. Would we use gross income or AGI? Is the safest thing for us to use the amount on our last tax return? I ask because I receive K-1 income and he gets W-2 and I know I will make more than last year this year, but really just want to provide a reasonable update. Haven't sought a credit increase in ages but would like to work toward a healthier score so we have flexibility down the road.

Re: Married Couple - Update Income Credit Cards/Mortgage Pmt Amount Question

Stralem — Fri, 12 Mar 2021 20:05:41 GMT

@ScoreUpScaleDown74 wrote:
Thank you for this. Would we use gross income or AGI? Is the safest thing for us to use the amount on our last tax return? I ask because I receive K-1 income and he gets W-2 and I know I will make more than last year this year, but really just want to provide a reasonable update. Haven't sought a credit increase in ages but would like to work toward a healthier score so we have flexibility down the road.

We put gross, rounded by to the nearest $100. Both figures appear on our joint tax returns, so why not provide the higher number? Besides, most applications and income update forms don't ask for that level of specificity.

Re: Married Couple - Update Income Credit Cards/Mortgage Pmt Amount Question

FlaDude — Fri, 12 Mar 2021 20:36:17 GMT

I always put gross, I'm pretty sure that's what is asked for. I round to the nearest 1k.

Re: Married Couple - Update Income Credit Cards/Mortgage Pmt Amount Question

Jnbmom — Fri, 12 Mar 2021 21:41:20 GMT

@Bradac56 wrote:
Exept OP is not asking about an application. This is just an update to the income and rent status.

EDIT: Also depends on if the card was opened as a single or joint application. If joint then both incomes.

@Bradac56

The same rules apply and no you still can put joint income on an individual credit application .

Re: Married Couple - Update Income Credit Cards/Mortgage Pmt Amount Question

Yankee2 — Fri, 12 Mar 2021 23:25:19 GMT

I don't think there is ever a time (with married people) that anyone would only look at one income since if one spouse doesn't pay a loan/credit, the other is also on the hook.

How married couples handle thier finaces is only a personal thing. As far as anyone else, once your married it's all one income...

Re: Married Couple - Update Income Credit Cards/Mortgage Pmt Amount Question

Anonymous — Fri, 12 Mar 2021 23:29:02 GMT

@Yankee2 wrote:
I don't think there is ever a time (with married people) that anyone would only look at one income since if one spouse doesn't pay a loan/credit, the other is also on the hook.

How married couples handle thier finaces is only a personal thing. As far as anyone else, once your married it's all one income...

I don't think that can be true, at least not in all (non community property?)states. If one spouse didn't sign, and they have only separate accounts, not sure how a creditor could attempt to go after the other.

Re: Married Couple - Update Income Credit Cards/Mortgage Pmt Amount Question

KLEXH25 — Sat, 13 Mar 2021 00:00:38 GMT

Huh. So I'm not married yet and only use my income of course, but as for rent, I only ever put down my half. Should I be putting the full amount down?

Re: Married Couple - Update Income Credit Cards/Mortgage Pmt Amount Question

Stralem — Sat, 13 Mar 2021 00:15:52 GMT

@KLEXH25 wrote:
Huh. So I'm not married yet and only use my income of course, but as for rent, I only ever put down my half. Should I be putting the full amount down?

Depends. With most people, both income and expenditures combine once they marry. Yeah sure, I technically only pay half the mortgage with my wife, but that payment comes from a single account that we both contribute to. I personally report household income and the entire mortgage payment amount when asked. Just makes sense for us.

Re: Married Couple - Update Income Credit Cards/Mortgage Pmt Amount Question

Yankee2 — Sat, 13 Mar 2021 00:51:38 GMT

@KLEXH25 wrote:
Huh. So I'm not married yet and only use my income of course, but as for rent, I only ever put down my half. Should I be putting the full amount down?

I'm not an expert, but I would think only whomever's name is on the rental agreement should put the full amount.

Re: Married Couple - Update Income Credit Cards/Mortgage Pmt Amount Question

KLEXH25 — Sat, 13 Mar 2021 00:57:53 GMT

@Yankee2 wrote:
@KLEXH25 wrote:
Huh. So I'm not married yet and only use my income of course, but as for rent, I only ever put down my half. Should I be putting the full amount down?
I'm not an expert, but I would think only whomever's name is on the rental agreement should put the full amount.

Both of our names are on the rental agreement.

Re: Married Couple - Update Income Credit Cards/Mortgage Pmt Amount Question

mich800 — Sat, 13 Mar 2021 01:05:04 GMT

@ScoreUpScaleDown74 wrote:
If I update income to possibly improve credit utilization percentage, should I do each individual's account with only their income or joint? Where it says mortage/rent payment should I put full amount or a portion? I make significantly more (2.5x+) should I list more of the mortgage share on my update? In practice our funds are all comingled.

We have high credit utilization as the reason our scores are consistently 710-756. We carry CC debt which we're finally able to pay down some. I have been holding a decent amount as cash because of the pandemic. But we're making progress paying down after having 6 cards maxed across the two of us.

We are a long-time married couple. All cards are in individual name. One Amex spouse is authorized user on my card. Have not updated income likely since opening the cards (many years). Both of our income has increased. Spouse is a W-2 employee. I own a business. No purchases imminent.

Neither our credit score or utilization ratio will change if you update your income. It is not a factor in either calculation.

But, a higher income may lead to higher credit limits which would accomplish your goal. Not sure if that was your actual question.

Re: Married Couple - Update Income Credit Cards/Mortgage Pmt Amount Question

FalconSteve — Sat, 13 Mar 2021 01:11:44 GMT

Unless they ask for individual, I give household gross, rounded to nearest $1k, sometimes rounded down to nearest $10k for clean numbers (small part of OCD).

Re: Married Couple - Update Income Credit Cards/Mortgage Pmt Amount Question

disdreamin — Sat, 13 Mar 2021 02:05:01 GMT

@Yankee2 wrote:
I don't think there is ever a time (with married people) that anyone would only look at one income since if one spouse doesn't pay a loan/credit, the other is also on the hook.

I ran into this issue when I financed a vehicle through our credit union. Because my SO wasn't listed on the loan, I had to show my income was sufficient to cover the mortgage (the entire amount, not some percentage) plus the auto loan without exceeding whatever DTI threshold the CU uses. I wasn't entirely sure I could even swing it, but the loan was for a vehicle my SO was unaware of and I didn't want them on the loan, hence the situation where their income could not be included, according to the CU.