Wife applying for CC

[Anonymous]

My DW and I are planning on buying a house in the next few months. She is a recent immigrant with her only credit history being as a AU on my CC that is no longer active and our household income is derived entirely from my earnings.I had been planning to apply for the loan using only my credit history since she does not have any history.

She has been offered a American Airlines Citibank CC. I am somewhat reluctant to have her apply before we close on a house because she has a spotty record of responsible spending. I am in credit score increase mode and I don't want to do anything that has the potential to negatively impact my FICO score. Because the application asks for household income and I am the only source of said income, I figure that anything negative on her account will ding my credit.

Am I being overly worried? I live in the state of Florida if that has any bearing on the matter.

[haulingthescoreup]

Her application will not affect your credit; they are entirely separate. Even if she lists HHI (household income), it will not be on your credit reports unless she lists you as a joint applicant. (Don't let her do that!!!)

However, she (or you) should not apply for credit during your mortgage app process. Wait until the loan is closed and funded.

And I guess this is a bit OT, but IMO, it would be a good thing for you to get on the same page with how you handle your finances. Money disagreements are the number one cause of marriage problems. Sorry if I stepped over the line there.

And since I brought up the topic of joint credit, do NOT go joint on anything other than your mortgage. Not on car loans, not on CC's. AU is different; the AU can be split off. Joint credit is just a nightmare waiting to happen.

For those who read outdated internet info, FICO 08 DOES credit AU accounts, especially when it's obvious that it's a family member (same address, etc.) There's no reason to go joint if you can go AU.

[Anonymous]

Your point about getting on the same page wrt finances is well taken. I am working on this.

Any particular reason that my wife should not apply for a CC before we apply for financing? We probably wont start the loan app process until early October and the CC app will have been processed by then.

Are there any consequences if she adds me as an AU both in terms of my initial question (the liability of her CC on my credit score) and whether it will be an inquiry on my CR? I wouldnt think so but I want to be safe

I was thinking that I would be the sole applicant for the mortgage. She has no income and her lack of credit history wont be of any help. Is there a legal requirement that married couples apply jointly for a home?

[marty56]

I would not have her add you as an AU since the account would show up on your CR.  It would be a new account thus lower your AAoA.  Typically people are added as AU to old accounts with big CLs and are people who have short credit histories or are unable to get credit due to credit problems in the past.  If you have better credit than DW, you would be adding her as an AU to your accounts.

IMHO couples should keep their credit seperate.