Some background, I had a ch7 discharge in 2019, my so only has about 2 years of credit history here in the states after immigrating. She has two cards in her name, one opened in the last six months, and a car loan opened about a month ago
We have signed a contract on a house that is due to be completed in 9-10 months. With my bankruptcy we thought it would be best if she was the sole borrower, unless my income was absolutely needed, but she was pre-qualified for the right amount on the mortgage, so we should be good there.
As far as I understand, she really shouldn't do anything else with her credit until the house is closed on, correct? I've added her as an AU on my VX, which was just opened last month. but that level of use for c1 doesn't require a SSN or tin, so I'm pretty sure it's just a card with her name on it that won't affect her credit in any way. If she were to be fully on the account, in what ways would that affect her score? I'm not thinking I'm terms of right now, so much, but maybe after the house is closed on. Would my bk have a negative impact on her? Everything since then has been 100% on time. Would such a young account really have any positive affect on her score, besides maybe the higher available credit?
Your bk won't have any effect on her credit unless she was on one of your accounts in the bk. You are correct in that she shouldn't do anything with her credit like open any new accounts and should pay down all balances possible. On the VX since they don't have her ssn for the card there's no way for them to report it. Once she is added fully, the only down side might be it looks like another new account in relation to it's age. Congrats on the house!
Do not do anything drastic credit or money wise until after closing. The lender will usually look back through all of the accounts right before. No opening new credit , charging anything beyond normal living expenses and no moving money around bank to bank etc is what we were told.
The presence of a BK less than 5 years old made it impossible for us to get a traditional mortgage. We were only 2 months shy I think it was. We had to go FHA for a year with PMI even though we had more than enough down to get passed that if it was traditional which was a real bummer. Just as a fyi or DP
Right as noted, make no changes.
I don't quite understand what you mean by: If she were to be fully on the account ?
Have you checked her reports? My DW is an AU on several of my C1 cards and vice versa. Our AU stati appear on each other's reports.