Excellent Score, Possibly Low Income

[DaughterOfEru]

I've been hoping to get a rewards card for many years to basically use as a debit card, paying it off immediately after my purchases. I have credit scores in the “excellent” range. However, I have a mortgage with my fiancé. He pays it, I work part time and I also have a monthly distribution from investments that covers around half of our mortgage. I make enough to pay my own bills, but when you take the mortgage into consideration on a credit card application, it looks as if I'm in the negative. I do have a second job, but I don't make enough to claim that income on taxes. I'm wondering if I should bother trying to apply for a rewards card. I've asked around and some have said, "No, don't hurt your credit." Others have said, "With scores like that, they won't turn you down!" So, I'd be grateful for other opinions. Thanks!

[Anonymous]

It all depends on what you'd put down under "income" on you CC app.  Have you figured out what that is?  What you pay for a mortgage isn't at the point of the credit application a consideration; it looks at income, not expenses.  So long as you have at least some income (which you do if you're paying bills) and solid credit scores, I'd think you'd be approved.  Under what terms/limit could be less than stellar, but I'd still be fairly confident in an approval.

[RobertEG]

The CARD Act includes provisions that permit a consumer to include the income of a spouse or partner in their application for a credit card under certain conditions.  You may be able to include, in addition to your investment and own personal income, the income of your partner if you meet certain conditions specified under the CRAD Act and subsequent regulations.

I would advise checking out the provisions of the CARD Act and the implementing federal regulations relating to statement of income when applying for a credit card.  You may be able to use his income.

There are many articles available on the net that discuss the issue in detail.......

Do you and your partner inter-mingle your bank accounts, thus providing you with access to the funds as joint assets?

[DaughterOfEru]

Great, I’ll definitely check that out. Thanks! No, we have separate bank accounts.

[DaughterOfEru]

Well, if I were to include the yearly mortgage amount we pay and my income from my W2 plus my monthly investment distribution, it appears I am in the negative, even though I’m not since my personal income isn’t paying 100% of the mortgage. Yeah, I was also thinking that I could be approved but the terms less than great.

[Anonymous]

---

Well, if I were to include the yearly mortgage amount we pay and my income from my W2 plus my monthly investment distribution, it appears I am in the negative, even though I’m not since my personal income isn’t paying 100% of the mortgage.

---

You need to keep it relative.  If the CC app asks for the mortgage amount and you put the full amount, you should be putting in your combined income since the combined income is what's relative to that mortgage.  Or, if you want to use only your income, perhaps put down the portion of the mortgage that you're responsible for... again, keeping it relative.  Many CC apps don't even ask about a mortgage or anything expense-related and if that's the case you shouldn't be doing any math for them in deducting expenses from your income.  They simply want to know your gross income and that's that.

[DaughterOfEru]

Ok, awesome, thanks! That definitely helps.

[AverageJoesCredit]

Whas t credit score do you currently have? General income ballpark? With these small details we can point you in the right direction

[DaughterOfEru]

Thanks! Supposedly my scores are 794, 806, and 807. Income is around $25,000 including my monthly distribution from investments, but not including anything from my second job since I don’t make enough to report it.

[Kforce]

---

@DaughterOfEru wrote:
Thanks! Supposedly my scores are 794, 806, and 807. Income is around $25,000 including my monthly distribution from investments, but not including anything from my second job since I don’t make enough to report it.

---

My daughter got a Citi-DC with $12,00 a year and scores about the same.

Three cards as an AU for credit history. First real card in her name.

I believe you have a good chance, CL might not be high, but time and proper use will fix that.