Reporting income on credit applications for Stay At Home Spouse

[Anonymous]

Hi,

When applying for credit card or auto loan, they ask for income.  If you are a stay at home spouse (or make little in comparison to your spouse), what are you suppose to write down?

Is household income what they are asking for?  or your personal income?  If personal income is the answer, how can a stay at home spouse ever get a credit card (or auto loan) in her name?

[pizzadude]

Unless the application explicitly asks for individual income, I would go with HHI.  

[RobertEG]

Maybe attachable assets.....

[Anonymous]

I am also a SAHM. I always put my DH income, because that is my income...personally and household. Just the same as when I worked, my income belonged to him as well. 

[AndySoCal]

The laws recently (in the last year or so) changed about what income is asked for on credit applicatrion I believe houisehold income will no longer be asked for. it will be your income. I looked at a credit card application on a another web site and it was not household income. In your case you wuold need to apply with a joint application. The problem with household income is this if someone applies for a loan credit auto etc as individual  they are the person responsible for the repayment of debt.  If that person has little or no income how is the debt going to be repaid. That said I say this to you and all the stay at home moms I applaud what you are doing. I know the changes in the law can be a pain in cases like this but I think the changes in the law  is good.

[Anonymous]

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@AndySoCal wrote:

The laws recently (in the last year or so) changed about what income is asked for on credit applicatrion I believe houisehold income will no longer be asked for. it will be your income. I looked at a credit card application on a another web site and it was not household income. In your case you wuold need to apply with a joint application. The problem with household income is this if someone applies for a loan credit auto etc as individual  they are the person responsible for the repayment of debt.  If that person has little or no income how is the debt going to be repaid. That said I say this to you and all the stay at home moms I applaud what you are doing. I know the changes in the law can be a pain in cases like this but I think the changes in the law  is good.

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Yeah, I just read that on this URL.  I understand the motivation, but, it really hurts stay at home spouses.

http://www.creditcards.com/credit-card-news/stay-at-home-parent-credit-cards-household-income-1282.p...

[Anonymous]

From what I've read on forums (over the past few years) the change was inevitable.

[vanillabean]

Yes, joint credit may be necessary; "the new rule prohibits the consideration of household income if only one person is applying for a credit card account."

I can see it from both sides. It's understandable that anyone would want to build and have credit, but can you guarantee repayment if the income is not personally yours?

You also cannot contribute to an IRA, unless the contribution comes from your earned income or unless you file taxes jointly with someone who has an earned income.

The whole thing brings up family structures. But even a generation or two back, who was a stay-at-home parent from age 20 to age 65? That's 45 years, 2.5 x 18 years!

PS: I'm not saying the thread doesn't belong here, but I'm surprised it hasn't been moved to the Relationships and Money forum by any mod?

[pizzadude]

According to the article, the Fed says that the solution is to either open joint accounts, or to be added as an Authorized User.

Also in community property states, like California, lenders are allowed to consider HHI when you apply.

[LS2982]

IMO if your married you should be able to use your spouses income if your a STHM or STHD.