Info Please

[Ann]

Hi everyone!

Can I get some info here on this...My husband has a auto loan and 1 credit card with a 1200.00 credit line. He is hell bent on NEVER applying for a credit card again. I told him he needs more than 1 card and an auto loan if we eventually want to buy a home again. He says no. Since he will not apply can I put him on my 2 cards (always paid off every month) and that will reflect on his credit line or no?? Also, would asking for a credit increase help or does he need a mix of cards? The mortgage is not being reported so our on time payments does not help. Thanks!

[despritfreya]

My advice. . .

If you value your marriage, don't go against his sound wishes.

Des.

PS: You already have a home so why are you concerned about buying another one?

[SMinGA2]

The 1 auto loan & credit card will be enough to generate a credit score, and keeping the credit card at low utilization will be key. It would not hurt for him to add a few more in time but not crucial for right NOW. Some credit scoring models do use authorized users, some don't. I don't know the details on that.

One thing to note: "always paid off every month" may not be enough to get the best score. Many cards report the statement balance. So you're in good standing if you use the card and pay by the due date, but if the balance is high at the time they report it would look like you are maxed out. Not important everyday, but something to think about before planning to apply for anything major. Such as if you were to apply for a mortgage in July you would probably want to make sure your balances reported low in May and June.

[Ann]

SMinGA2,

Thank you for giving me a straightforward answer! I appreciate it! To despritfreya: I come here to get information from others who can give me input NOT their judgements on why I'm asking questions. Your statement of "If you value your marriage" and asking why I'm concerned about buying another home is highly uncalled for!!! From now on I would appreciate it if you do not chime in when I ask a question! I do not WANT YOUR OPINIONS anymore!!!

[NoMoreCards]

Your comments to despritfreya were rude and uncalled for. No judgement was made IMHO. Despritfreya is spot on!! Married or not your husband has the legal (and moral) right to manage his credit the way he sees fit. Many times when one person in a marriage decides to go against what the other clearly wants it causes problems. That is a fact that most people realize, especially attorneys who deal with everyday legal issues.

despritfreya is a very highly respected contributor to this forum and I hope you realize that the comment was not judgemental at all. It is a fair question actually. If you already own a home, why would you be worried about purchasing another at this point?

[LadyInTheRed]

I do not WANT YOUR OPINIONS anymore!!!

Wow! You may have just cut off your chances of getting advice from one of the best people on this board to get advice from!

When you post on a public forum, you are going to get all kinds of input that may not be direct answers to your question. You don't get to pick and chose what kind of answers you get. Des' answer was not a judgement, but good advice from somebody who has probably seen many marriages in trouble because of financial difficulties and disagreements on how they should be handled.

[SMinGA2]

Many on this board are in the habit of offering personal/relationship advice when it isn't requested. (I probably even do it myself sometimes.) I'm sure its very frustrating for someone to post a legitimate question and be told how to handle their personal life, rather than get an answer.

[frogger]

SMinGA2,
To despritfreya: I come here to get information from others who can give me input NOT their judgements on why I'm asking questions. Your statement of "If you value your marriage" and asking why I'm concerned about buying another home is highly uncalled for!!!

What des told you was not a judgment, it was very wise advice from a very wise man.

[justbroke]

While bankruptcy is certainly a technical proceeding and a business decision, it is also very personal. (Even the post-bankruptcy "recovery" period can be very personal as well.)

It is wrought with emotion and personal feelings. If an attorney responded to my question by first framing the context, I would certainly be listening and evaluating the response more carefully. Unfortunately, I too don't think what was written was a judgment or an opinion. The writer, Des, has certainly seen more stories like this than there are probably posts to the Forum over the last week... give or take. Des was asking you to step back and think for a moment.

I had purposely not answered your question earlier today, because I didn't know how to frame it. I would say that, simply, you should not just add your husband to your cards to improve "his" credit scores or credit profile. That is his personal decision. I'm trying not to say what Des wrote, but be careful when it comes to finances.

As for your sole and personal credit profile, keeping balances low (as much below 30% as possible), and high credit limits does help "your" credit profile. Additionally, you must always pay on time. Creditors care a lot more about the FICO score before they'll even talk to you about the number of trade lines. A good mix is good, but too many revolving accounts also hurts. Too many installment accounts, hurt. No one knows the exact FICO scoring model, or how to calculate one, and even people from Fair Isaac can only tell you the general components of scoring.

As for hubby... if he's paying on time, not applying for credit often, and keeping his CapOne card under 30%... he's just fine. You can actually have scores in the 700s with that type of profile.

[Ann]

Well, it looks as though I have been outnumbered here. justbroke, thank you for giving me the answers I was looking for. As always, it is very much appreciated! Nice to get a straightforward answer!

[despritfreya]

In deference to Ann, I do not take offense to her comment. She may not know me or my straight forward approach to responding. As such, my post could have been interpreted as “rude”. Ann, I assure you I was not so intending and apologize if you took offense. I do hope you continue to post questions. To those who have jumped to my defense, thank you.

Des.

[ksgirl38]

Well, it looks as though I have been outnumbered here. justbroke, thank you for giving me the answers I was looking for. As always, it is very much appreciated! Nice to get a straightforward answer!

I completely understand how you feel!

[IBroke]

Hi everyone!

Can I get some info here on this...My husband has a auto loan and 1 credit card with a 1200.00 credit line. He is hell bent on NEVER applying for a credit card again. I told him he needs more than 1 card and an auto loan if we eventually want to buy a home again. He says no. Since he will not apply can I put him on my 2 cards (always paid off every month) and that will reflect on his credit line or no?? Also, would asking for a credit increase help or does he need a mix of cards? The mortgage is not being reported so our on time payments does not help. Thanks!

Of course, it will be your husband's decision what he wants to do with his credit. From a credit-scoring POV, a car-loan and one CC is just fine. When it comes to a future mortgage (and I'd say a possible future job-relocation could already be a reason to seek a new mortgage ALTHOUGH you already have one), it also depends on a potential lender. For some, two reported tradelines is simply not enough no matter what the score is.

He can always add another CC later on, but depending on WHEN you are seeking a new mortgage, this might have to be done sooner than later. Some lenders require a specific number of open tradelines for a specific time-frame, so just adding a card a month before applying for a mortgage might not be sufficient.

I'd say you tell that to your husband so that he knows these facts and see where it goes from there.

[Ann]

Des,

Allow me to apologize to you! Yes, I did think your input earlier did seem "judgmental". I appreciate ALL the advice I get from everyone here. Without all of you good people and your experiences and knowledge that you share here I would NOT have been able to get through this very difficult part of my life! Des, thank you for helping me better understand where you were coming from earlier. You have a lot of support on this forum! Your input will be most appreciated by me in the future!

[DesdemonaB]

Hi Ann

If your two cards report to your CRA then they are reporting his, continue the good payment history, keep your usage under 15% and he should be good.

As for your current mortgage not report, I assume you did NOT affirm, keep your own records – get online and download statements showing on-time payments from discharge to present – it would be same as a landlord letter.

Good luck with the house hunt, I will starting the process next spring let us (MI) folks know if there is anything weird, out of the ordinary during your journey.