Credit building question

[ryna 132]

I am trying to help my wife establish credit in the U.S. Any suggestions on how to build her credit history without too much pain? My credit history is excellent and I wish to preserve my ability to get the same rates I can now while at the same time being able to make joint purchases - car for her, possible home re-finance, if rates remain low (to add her name to deed), etc. Will adding her as an authorized user to my credit card account create a separate credit history for her or is that still all mine since I own the account? Has anyone ever added a spouse as an owner on an existing account? Or, is that playing with fire in that they'll change the existing rate and limit to match the combined credit history?

The only thing I can think of is to have her open an account (at unfavorable terms and co-signed by me) and use it monthly as I now use my accounts, paying it off in full each month. I'm not a fan of secured cards because it amounts to an interest free loan for them and I just can't bring myself to loan a bank money for free if I'm paying them in full each month.

That's all I've got... I built mine the old-fashioned way. They dangled credit cards in front of my face in exchange for free stuff when I was in college years ago...

Of course, all of this hinges on the SSA finally getting around to issuing her her SSN after what is now a 4 week delay... I can't add her to ANYTHING without that, I am quickly learning...

Thanks for any ideas/suggestions...

[thatbritishlass 2]

Try Capital One - I just got approved for a Platinum card with them despite being unemployed and having only been in the country 4 months Limit is only $300 but it doesn't matter - it is credit and I can use it and pay it off to start building my rating. I had a pretty decent credit rating back home so I'm determined to build myself a good rating.

Capital One also do a card that is specifically designed for people who have recently moved to the US - unfortunately I only found out about it after I'd applied for the other one, applied for it and was refused, probably because I'd only just been approved for the other one - but it has no annual fee and reports monthly to the 3 major credit bureaus. Definitely worth a shot.

You also have the option to be a co-applicant if you want to do that.

Here's the link: http://www.capitalon..._05_T_CP67020AW

Edit to add this: You will of course have to wait for her to get her SSN, but I would definitely consider this option once you've got that. I already had an SSN from when I worked here previously, so fortunately I had already overcome that hurdle.

Edited February 8, 2011 by Miss Jess

[Aztec&Taino 144]

I am trying to help my wife establish credit in the U.S. Any suggestions on how to build her credit history without too much pain? My credit history is excellent and I wish to preserve my ability to get the same rates I can now while at the same time being able to make joint purchases - car for her, possible home re-finance, if rates remain low (to add her name to deed), etc. Will adding her as an authorized user to my credit card account create a separate credit history for her or is that still all mine since I own the account? Has anyone ever added a spouse as an owner on an existing account? Or, is that playing with fire in that they'll change the existing rate and limit to match the combined credit history?

The only thing I can think of is to have her open an account (at unfavorable terms and co-signed by me) and use it monthly as I now use my accounts, paying it off in full each month. I'm not a fan of secured cards because it amounts to an interest free loan for them and I just can't bring myself to loan a bank money for free if I'm paying them in full each month.

That's all I've got... I built mine the old-fashioned way. They dangled credit cards in front of my face in exchange for free stuff when I was in college years ago...

Of course, all of this hinges on the SSA finally getting around to issuing her her SSN after what is now a 4 week delay... I can't add her to ANYTHING without that, I am quickly learning...

Thanks for any ideas/suggestions...

There are credit cards which target people with no credit histories (usual targets are college students). The credit limits of these cards are ridiculously low (between $300 and $500), but they are a good way to start building credit. Make sure though that she does not apply for many credit cards, or for credit cards for which she would clearly not qualify as every time you apply for credit your rating is looked at and your credit score lowers. Best wishes!

[Harsh_77 716]

Add her to your accounts - even your credit cards and she will be sharing credit history with you.

[ryna 132]

Add her to your accounts - even your credit cards and she will be sharing credit history with you.

That's what I was hoping to see! I just wasn't sure how that worked or if there was any negative to my credit rating in doing so.

As for the other cards, those are good ideas to keep in mind if for whatever reason she can't start off sharing mine.

Thanks

[rheanick 42]

I am trying to help my wife establish credit in the U.S. Any suggestions on how to build her credit history without too much pain? My credit history is excellent and I wish to preserve my ability to get the same rates I can now while at the same time being able to make joint purchases - car for her, possible home re-finance, if rates remain low (to add her name to deed), etc. Will adding her as an authorized user to my credit card account create a separate credit history for her or is that still all mine since I own the account? Has anyone ever added a spouse as an owner on an existing account? Or, is that playing with fire in that they'll change the existing rate and limit to match the combined credit history?

The only thing I can think of is to have her open an account (at unfavorable terms and co-signed by me) and use it monthly as I now use my accounts, paying it off in full each month. I'm not a fan of secured cards because it amounts to an interest free loan for them and I just can't bring myself to loan a bank money for free if I'm paying them in full each month.

That's all I've got... I built mine the old-fashioned way. They dangled credit cards in front of my face in exchange for free stuff when I was in college years ago...

Of course, all of this hinges on the SSA finally getting around to issuing her her SSN after what is now a 4 week delay... I can't add her to ANYTHING without that, I am quickly learning...

Thanks for any ideas/suggestions...

Add her in your credit card as joint account. She would build her credit scores by doing that.

[jkelly07 120]

some banks will offer you a credit card,you have to keep a balance off three hundred dollars, and you can use the card up to the three hundred,and you make payments on time four or five months later there is no more balance, they will raise your limit, the other is you can get store credit, a dept store, to get a credit rateing,juuust don't be late, and don't miss a payment,and you will have good credit standing,

[MIDUVIL 34]

Hello,

I don't really know if adding your wife in your credit account will help her build her credit.

My husband did the same thing, had a new credit joint account, I was faithfull by paying it regularly and each month and more than the minimal amount- with my name on the check, my name on the card, my name on the account.

However after more than 1 year, when we cancelled this credit card, the same bank refused to grant me my own credit card, and I have no credit history record.

Concerning the secure credit card, they asked you (I don't know if all the banks are the same)a minimum (wage) by month, not a lot but I'm unemployed.

I'm lucky that I was accepted by some big brand (I don't know why because they already refused me) for credit store-

My concern is I'm not a big spender so maybe I won't be able to use them frequently.

[pixie77 2]

My husband added me as an authorized user in one of his credit cards but apparently when we called them and asked they said that it wouldnt build my credit because all will still be under my husband's credit history. That's why we did the secured credit card. Some credit card companies may build a credit history if you add your wife as an authorized user but we were told that it is the primary card holder's responsibility to pay the debt and not the additional user and so this credit history doesnt really have so much bearing if you go to lending institutions.

Edited February 10, 2011 by pixie77

[ryna 132]

Thanks for the replies...

It seems to me that to start building her own credit score, she will need an income of her own and need to be the primary account holder. When she starts working, this is where I can help by being the secondary account holder/co-signer.

I was afraid that the person on the account with the lowest score (or in this case, no score) drove the lender's decision on joint purchases. However, after reading this, I think it should not be an issue and I should be able to add her to my accounts while gaining the ability to make joint (financed) purchases at continued decent rates.

[JSVP08 3]

Capitol One just sent me a pre-approved credit card application. I have no clue how they got my basic information. All i did was replied to the mail and a week after i got my credit card on the mail. No questions asked. I wasn't even working yet at the time. Kinda low but its a good way to start building my credit history.

[rheanick 42]

Hello,

I don't really know if adding your wife in your credit account will help her build her credit.

My husband did the same thing, had a new credit joint account, I was faithfull by paying it regularly and each month and more than the minimal amount- with my name on the check, my name on the card, my name on the account.

However after more than 1 year, when we cancelled this credit card, the same bank refused to grant me my own credit card, and I have no credit history record.

Concerning the secure credit card, they asked you (I don't know if all the banks are the same)a minimum (wage) by month, not a lot but I'm unemployed.

I'm lucky that I was accepted by some big brand (I don't know why because they already refused me) for credit store-

My concern is I'm not a big spender so maybe I won't be able to use them frequently.

I was only added by my husband in his credit card. Adding as supplemental did not work. But when he added me as a joint account, after several months i got a pre-selected application. During my talk with the card agent, she said my credit history shows a length of year that corresponds to my husband length of years he has with his present credit card.

Several months ago, i kept receiving pre-selected credit card application. Decided to apply for one, got approved with $6500 credit limit. BTW, i have no work history, never been employed. Though i have my own photography business that is not profitable yet.

I guess, my husband adding me up as joint card holder really helped. Its a good start.

[bobby_kvisa 7]

When you add a new immigrant to your existing credit cards you should be careful, they are probably going to add them as an "Additional User". Even if you give the immigrant's social security number, an additional user will not build credit. Credit will only be built if they are reporting your activity to different agencies.

At some credit unions, they have an option for Shared Secured Card. In this setup, both husband and wife can apply for a Shared Secured Card which is secured by a certain amount of money in your Savings Account. The amount you are using for security will determine the limit on the card. With this setup, you are opening a joint account and can make sure they will be reporting on both social security numbers.

[dolarbill 0]

easiest & less costly thing to do is have her open & savings account, then take a loan out on this savings account, which is called a "secure loan" then make the TIMELY payments, pay every month the exact amount on time every month do not pay off this loan ahead of maturity date

fyi, small home town banks are the best banks to do business with

[웃 910]

My story is a dream come true for a person looking for credit. Here is a timeline:

Jan 2009 (entry)

March 2009 (been working steady since this date....she earned $17,500ish last year before taxes which is at her $10/hour job PART-TIME...she was raised to $10.40 last summer 2010)

March 2009 (added her to my Merrill Lynch visa card which had a $2500 limit....this account was in good standing...never really went over 35% of the limit....and was opened in 2007)

****BREAK FOR QUESTION****

When my wifes credit file is pulled; where do you think they show her at the 3 bureaus of having initially getting into the credit market? March 2009? NO! They show her as establishing credit since 2007 when I opened the account. So off the bat she has 2 years of established credit even though she has only been in the country for a couple months.

Summer 2009 (SECURED credit card: I pay bank $400....she has $400 credit limit....we kept the balance around $125 and kept paying the minimum each month....after 9 months we were told she could be upgraded to an unsecured card....Long story short after the 9 months we CLOSED this low-credit card because I figured they would MAYBE jump her to $1,000 on an unsecured....OF COURSE the bank (Bank of America) returned our $400 via a check in her name.....

Here is where my memory is a little fuzzy....I'll just call it:

April 2010 (CHASE SAPHIRE mails her a letter inviting her to apply: Chase is my personal favorite for credit cards. I say, #######, let's apply, this is rare....I apply and call the number: Congratulations! You have been approved for a $5,000 limit!)

October 2010 (using her 715 median credit score and $17,500 annual income she was pre-approved for an FHA home loan for up to $60,000....We got a nice 1200 square foot fixer upper for $20,000 and the monthly payment is $342 a month with taxes/insurance included...All in her name)

November 2010 (apply for a chase Freedom....Congratulations, you have been approved for a $5,000 limit)

December 2010 (closed on home)

February 15th (last night, applied for an American Express Blue....they must have sent her 3 or 4 applications over the last year so said screw it, we don't need to apply for a HELOC for at least another year so lets get the inquiries out of the way...I am pretty sure she was approved for $2500 when I called to find out the credit line...unless I heard it wrong...

March 2011 and moving forward-----We are close, maybe a few months down the road from asking for some credit line increases on her Chase cards. Well, at least the Chase Saphire. She owes about $1,000 on each card with a $5,000 limit....The Merrill Lynch card she is an authorized user on that kicked off all the fun has a $0 balance out of $2500 limit. Hopefully they will jump her to $7500 or so...Some time in 2012 we plan to refinance the house, pay off the mortgage, and use the extra cash to buy a second fixer upper.

On a side note I applied a few months after her approval to Chase Saphire and was denied....I think I applied a second time and was denied....Finally last month I applied and I was approved on the Chase Freedom for a $7500 limit...This is my highest limit to date.

If I could recommend any card it would be either the Chase Freedom or Saphire. They will even send you a $100 check in the mail if you spend a certain amount (around $500) within the first few months....The freedom gives 5% cash back up to $800 per year...