Using spouse income?

Anonymous · ‎03-03-2016

First let me state, we have already done a lot of research on the subject, and know that current regulations, allow persons older than 21, to report income that they have reasonable access to, and regularly use to pay their bills. That would be me. I'm a stay at home mom, who uses my husbands income to pay all bills, be it mine, his or ours.

Anyhow, we have spent the last year rebuilding and fixing his credit, and have had great sucess, increasing scores by 60+ points, and credit limit total significantly. We did his credit first, because we are looking to obtain a mortgage loan, sooner rather than later, and his income will clearly be what it is based off of.

So now that he is in a better standing credit wise, would like to do some repair to my credit. As I stated, we already know the regulations of being allowed to use spouse income, but the question is, Should a person use spouse income?

I am a AU on mulitple cards of his, but considering my credit was significantly worse than his, even in improving his credit, it has only brought me to a Fico 8 score of 610 across the board. My auto, mortgage, bankcard version scores vary, but are all higher than 610.

I have however, recently received some pre quals, most notibly from Chase, and Wells. Which leads me to the purpose of this post.

The hubby already has cards with Chase and Wells.

So how does that work for me to apply?

Using his income, would mean they issue me credit, based on his salary. They however have already issued him credit based on his salary.

So how would they extend further credit to me, based on the same income? How would we prove that I have reasonable access to his income, in the event they ask?

And last but not least, is this good practice? As in, just because you can do something, doesn't mean you should.

Any replies greatly appreciated!

tacpoly · ‎03-03-2016

You need to establish your own credit, not just as an authorized user. A lot of things can happen unexpectedly (death, divorce) and you need to be able to stand on your own without him. BTW, are you on the auto loan or mortgage?

Go ahead and put his salary down on the application. To prove it, you can show a joint tax return.

Contrary to many of the advice here, I suggest you get only 1 or 2 credit card accounts in your name. You don't need more because you have the authorized user cards. Please do not do any app sprees or get random store cards; I think a lot of cards are a temptation to spend. Just get the card(s) you need and what will be useful to you.

Anonymous · ‎03-03-2016

Oh, I understand that completely and that's the goal we are trying to obtain. Looking to rebuild/reestablish, my creditworthiness, and nothing more. Not looking to build a huge portfolio of cards, that I won't use, or would rack up debt, that couldn't be paid off. This is mainly because,I will be on the mortgage loan, so trying to raise my score quite a few points, so we can get the best rate available to us.

I am looking only to apply for 1 card currently, as I don't want to take a hit on points for multiple inquires, or opening a bunch of cards at once, and looking desperate for credit. I believe I would like to go after the Chase Freedom, based on the pre qual offer they gave me, but going to review the Wells again before deciding. I also have a pre qual from citi, but the terms are not appealing, and have a pre qual from Discover, but from what I have read on here, thats to be taken with a grain of salt.

Good to know that in the event it would be requested, that tax return would be acceptable document, and that's easy enough to print off.

Thanks for your reply!

Revelate · ‎03-03-2016

@Anonymous wrote:
Oh, I understand that completely and that's the goal we are trying to obtain. Looking to rebuild/reestablish, my creditworthiness, and nothing more. Not looking to build a huge portfolio of cards, that I won't use, or would rack up debt, that couldn't be paid off. This is mainly because,I will be on the mortgage loan, so trying to raise my score quite a few points, so we can get the best rate available to us.

I am looking only to apply for 1 card currently, as I don't want to take a hit on points for multiple inquires, or opening a bunch of cards at once, and looking desperate for credit. I believe I would like to go after the Chase Freedom, based on the pre qual offer they gave me, but going to review the Wells again before deciding. I also have a pre qual from citi, but the terms are not appealing, and have a pre qual from Discover, but from what I have read on here, thats to be taken with a grain of salt.

Good to know that in the event it would be requested, that tax return would be acceptable document, and that's easy enough to print off.

Thanks for your reply!

When are you looking to go mortgage shopping? If we're talking 1+ year out, don't even sweat the inquiries and take both. I'm of the have 3+ cards of your own camp, but that's me and my formerly credit score obsessed nature since AU's can get squirrely.

The Freedom is pretty much better than anything WF offers entry-level, if you have a pre-qual which is typically stable from Chase, I'd go take that. Good little card, one of the best for the strata we're talking about and it still has use even way in the future when rockin a better credit score too.

Anonymous · ‎04-28-2016

I am always nervous about putting my husband's income on my applications. I am rebuilding now and have one measly $2250 limit cap one platinum. I have a game plan to apply for an Amex BCP in August, and I know a higher income affects credit limits. My husband makes $105k and I make $57k. I would love to show both our incomes, but I didn't want to get flagged. My fear is probably unfounded as my tax returns back it all up. I'm still on the fence, but I have a few months until I make my final decision anyway.

From mobile device-pls excuse typos

Anonymous · ‎04-28-2016

I just looked up the CARD Act. If they flag me, they flag me. We've been married for 7 years so I have nothing to hide. I'm just a nervous nellie when it comes to credit. I messed up before and now my mortgage is in my husband's name alone so I'm doing all I can to never be in this position again.

From mobile-pls excuse typos

Kevin86475391 · ‎04-29-2016

@Anonymous wrote:
Oh, I understand that completely and that's the goal we are trying to obtain. Looking to rebuild/reestablish, my creditworthiness, and nothing more. Not looking to build a huge portfolio of cards, that I won't use, or would rack up debt, that couldn't be paid off. This is mainly because,I will be on the mortgage loan, so trying to raise my score quite a few points, so we can get the best rate available to us.

It's none of my business and I'm also not a homeowner and don't plan to become one, so take what I say with a grain of salt or ignore it completely, but if you're a stay-at-home mom without income and your husband's credit is better than yours then why are you going to be on the mortgage loan too? You can be on the title and thus have part ownership of the house without being on the mortgage loan. If applying together doesn't raise income estimates and your credit hurts the terms you qualify for, I wouldn't personally do it. Definitely be on the title and have legal co-ownership of the house, but I don't see the advantage of being on the mortgage loan. Again, I've never personally gone through this process, so perhaps I'm ill-informed.

Anyway, to the topic at hand, I think you should be just fine listing his income on the application. As has been pointed out it's perfectly legal and easy enough to prove if necessary.

Regarding cards, I'd definitely strongly recommend the Chase Freedom over anything Wells Fargo has.

Anonymous · ‎04-29-2016

Be on the deed, and not the mortgage you say?

Very interesting, and appears we need to do some more research on the matter.

I was not aware this was an option, as I could swear that we were told I would need to be on the loan, to be on the deed.

Either we misunderstood, or have been mislead.

Thanks for your input, will definitely be looking into this.

Kevin86475391 · ‎04-29-2016

If it helps, I think what you need to research is called a "Quitclaim Deed"

Try Googling "quitclaim deed to add spouse to title." It looks like something that's done after closing.

Anonymous · ‎04-30-2016

Mommymomma, I am on the Deed to our house but not the mortgage. He cannot sell the property without my consent and if he passes away the house goes to me. If you don't mind not having the mortgage on your credit report, it may be best to have him do it solo. Especially if you have debt (for example, student loans), but do not add to the income, you may get a better rate with just him. Your loan officer will run both scenarios.