Post by mrssavy42112 on Jan 2, 2013 12:20:17 GMT -5
So, DH just became a Permanent Resident and is looking to start building credit. Adding him to my CCs is out of the question because he has not proven to be responsible with his checking account (left it overdraft for 3 months, recently). The only cc he can get requires a deposit & we don’t have the $ for it.
I suggested he get a Target store card & I use it for basics, pay it off monthly & hope they offer to upgrade to Target Visa due to good behavior (this is what I did 8 years ago).
Are there any other better/faster ideas out there? TIA!
Love of my life baby boy born 11/11. One and done not by choice; 3 years of TTC yielded 4 MMC and 2 CPs, through 4 IUIs and 2 IVFs. Focusing on making the world a better place instead...and running.
The two points above are both very good. You can add him as an authorized user to one of your cards, and then not give him the card to use. That gives him the benefit of your good credit history on that card, with no risk of using it.
But then if you don't trust him with credit, why would you want to put him in a better position to get it?
Post by mrssavy42112 on Jan 2, 2013 12:42:48 GMT -5
He is the one who wants to start building credit. We want to move soon into a bigger apt and it would be helpful to use both of our income/credit towards being eligible for the apt. For the current place, only I could apply.
I can make him an authorized user, but then how do I explain to him that I don’t want to give him a card because I don’t trust him? That doesn’t sound like a fun convo…
He is the one who wants to start building credit. We want to move soon into a bigger apt and it would be helpful to use both of our income/credit towards being eligible for the apt. For the current place, only I could apply.
I can make him an authorized user, but then how do I explain to him that I don’t want to give him a card because I don’t trust him? That doesn’t sound like a fun convo…
I don't say this often, but honestly, marriage counseling. Don't mingle your finances or credit with someone you don't feel comfortable discussing finances and credit with.
He is the one who wants to start building credit. We want to move soon into a bigger apt and it would be helpful to use both of our income/credit towards being eligible for the apt. For the current place, only I could apply.
I can make him an authorized user, but then how do I explain to him that I don’t want to give him a card because I don’t trust him? That doesn’t sound like a fun convo…
I don't say this often, but honestly, marriage counseling. Don't mingle your finances or credit with someone you don't feel comfortable discussing finances and credit with.
I tend to agree with this, find a counselor to discuss these issues. This could pop up later on much worse if not dealt with.
I wouldn't add someone to my credit who has bad credit. Sorry, I may love you but I can't have lower credit standards than Visa. (Mush offered a good strategy, but your follow-ups make it a no-go.)
If he wants good credit, then he actually has to establish a history of using credit wisely. That's a good skill to have as an adult, and he's better off learning it and not taking a shortcut anyway. He can probably get a credit card at a local gas station. Using it for gas and making on-time payments will be a boost. He can join a credit union and get a card through them and make payments directly from his account (online) - so that's easy. His bank won't offer him a credit card now?- even with an account? He can change one of your utilities into his name, that's a good booster.
But he has to make on-time payments, or his credit will just get worse. There is no point if he doesn't actually do it.
He can get a secured credit card. He deposits a couple of hundred dollars in the bank and that’s his line of credit. The interest rates are terrible (so you need to pay it off each month) and there are fees. But your payment history does show up on your credit reports. His goal should be to use the card to boost his credit score until he qualifies for a real credit card.
I wouldn't add someone to my credit who has bad credit. Sorry, I may love you but I can't have lower credit standards than Visa. (Mush offered a good strategy, but your follow-ups make it a no-go.)
If he wants good credit, then he actually has to establish a history of using credit wisely. That's a good skill to have as an adult, and he's better off learning it and not taking a shortcut anyway. He can probably get a credit card at a local gas station. Using it for gas and making on-time payments will be a boost. He can join a credit union and get a card through them and make payments directly from his account (online) - so that's easy. His bank won't offer him a credit card now?- even with an account? He can change one of your utilities into his name, that's a good booster.
But he has to make on-time payments, or his credit will just get worse. There is no point if he doesn't actually do it.
I like the idea of having him on the utilities. We only have 1 utility bill, but it's better than nothing.
Dumb question, do you have to be part of a union to join a credit union? I always assumed so. If so, then he is not part of a union. For the gas card, I'm the one with the car, so I guess he could get one & I could use it?
You could look into a prepaid card. I know there are some that do report to the credit agencies. Also, you could move your cell phones and other bills to his name. I don't think they are reported to the agencies the same, but at least it's something.
I would not add him to an account of yours if he is untrustworthy with money. I would tell him why. You can't expect him to know if you don't tell him. I also ditto the counseling suggestions.
I would not mingle my finances until he's proven that he is trustworthy, but I would try to help him learn how to manage finances.
Post by dr.girlfriend on Jan 2, 2013 13:29:27 GMT -5
Authorized user doesn't help your credit anymore, just joint user. Too many people were adding strangers as authorized users to their accounts to bump up their credit. Joint user is pretty easy too, you just have to send in a form you both sign saying you're jointly responsible for the credit card debt. You can do that without giving him a card. It will backdate his credit history to when you got the account (do it for your longest-standing account), with your record of good payments. You can explain that in terms of why he's not getting his own card. But, seriously...not trusting DH with something as simple as a credit card is pretty concerning. Is his problem laziness / inattention to accounts or actual overspending? Your other option would be a "secured" credit card.
I wouldn't add someone to my credit who has bad credit. Sorry, I may love you but I can't have lower credit standards than Visa. (Mush offered a good strategy, but your follow-ups make it a no-go.)
If he wants good credit, then he actually has to establish a history of using credit wisely. That's a good skill to have as an adult, and he's better off learning it and not taking a shortcut anyway. He can probably get a credit card at a local gas station. Using it for gas and making on-time payments will be a boost. He can join a credit union and get a card through them and make payments directly from his account (online) - so that's easy. His bank won't offer him a credit card now?- even with an account? He can change one of your utilities into his name, that's a good booster.
But he has to make on-time payments, or his credit will just get worse. There is no point if he doesn't actually do it.
I like the idea of having him on the utilities. We only have 1 utility bill, but it's better than nothing.
Dumb question, do you have to be part of a union to join a credit union? I always assumed so. If so, then he is not part of a union. For the gas card, I'm the one with the car, so I guess he could get one & I could use it?
I think different credit unions have different ways to qualify for membership. The one I use (and used to work for) only requires that you live in one of the six surrounding counties. We also joined another when buying a car. The dealership we bought from did their financing with the 2nd credit union.
Post by retardy4thaparty on Jan 2, 2013 13:36:37 GMT -5
I don't believe Target offers a Target Visa card anymore. When I signed up with them recently, they only gave the options of red card or red card debit. This was prior to them running any of my information.
I don't believe Target offers a Target Visa card anymore. When I signed up with them recently, they only gave the options of red card or red card debit. This was prior to them running any of my information.
This. I have a Target visa but I joined in 2004. They don't do them anymore.
I don't believe Target offers a Target Visa card anymore. When I signed up with them recently, they only gave the options of red card or red card debit. This was prior to them running any of my information.
This. I have a Target visa but I joined in 2004. They don't do them anymore.
Whoa, you guys are right. I just looked at the site. What the heck is a Target debit? Why would I want Target to withdraw from my checking account. I have a debit card for that.
Anyway, we'll figure it out. Thanks for the suggestions.
Honestly I say he gets a low limit card in his name alone and let him do his thing. You can, of course, give him guidance and suggest paying it off to get a good credit score. You can't baby him forever, though.
This. I have a Target visa but I joined in 2004. They don't do them anymore.
Whoa, you guys are right. I just looked at the site. What the heck is a Target debit? Why would I want Target to withdraw from my checking account. I have a debit card for that.
Anyway, we'll figure it out. Thanks for the suggestions.
the Target debit card (red card) gives you 5% off all your purchases automatically. that's why people use it.
This. I have a Target visa but I joined in 2004. They don't do them anymore.
Whoa, you guys are right. I just looked at the site. What the heck is a Target debit? Why would I want Target to withdraw from my checking account. I have a debit card for that.
Anyway, we'll figure it out. Thanks for the suggestions.
the target debit gives you like 5% off of your purchases, it's also cheaper for target.
Honestly I say he gets a low limit card in his name alone and let him do his thing. You can, of course, give him guidance and suggest paying it off to get a good credit score. You can't baby him forever, though.
And yes to counseling.
Exactly. I don't think a shortcut is the best long term solution here.
I thought utilities only report to credit bureaus if bills are past due and go to collections?
You are right. On time utility payments are NOT going to help build credit. They only hurt if they go to collections.
OP: I use to be a credit manager (helped people pay off debt and rebuild credit). Best thing to do if you dont' want to cosign something for your H (which I wouldn't if he's still being irresponsible) is to just sit and wait. Let all the bad reports roll off his credit report (they stay on for 7 years). Once they start rolling off one by one, you should start seeing small increases in his credit score. Once they are up to about 675 or so then he can try for a credit card. If you keep trying now for a CC in his own name, they'll just keep turning him down which in turn will keep knocking points off his score.
Or start putting money aside for a "secure" card which is a pre-paid credit card. He should be able to get approved for one of those by 600.
Post by emilyinchile on Jan 2, 2013 15:11:39 GMT -5
What conversation did you have about the overdrafting?
My H has been forgetful with paying his CC bill on time in the past. He knows that this is a weak area for him, so he wouldn't be offended if I did something like adding him to the account just for credit purposes. It sounds like maybe your H is sensitive about this though? Or he doesn't think there's anything wrong with overdrafting?
I thought utilities only report to credit bureaus if bills are past due and go to collections?
You are right. On time utility payments are NOT going to help build credit. They only hurt if they go to collections.
OP: I use to be a credit manager (helped people pay off debt and rebuild credit). Best thing to do if you dont' want to cosign something for your H (which I wouldn't if he's still being irresponsible) is to just sit and wait. Let all the bad reports roll off his credit report (they stay on for 7 years). Once they start rolling off one by one, you should start seeing small increases in his credit score. Once they are up to about 675 or so then he can try for a credit card. If you keep trying now for a CC in his own name, they'll just keep turning him down which in turn will keep knocking points off his score.
Or start putting money aside for a "secure" card which is a pre-paid credit card. He should be able to get approved for one of those by 600.
DH doesn't have bad credit, he has 0 credit. He just became a US resident & just got a SSN. From the suggestions on this thread, it looks like the best bet is to save up for the deposit for a secure cc. Thanks.
emily - I pay our bills & control our finances. He basically deposits his check into our joint checking & then I tell him how much we can afford to take as fun money that period & he transfers it to his personal checking. It's that acct that he overdraft several times & then left it in the red for 3 months straight. :-| I didn't know until he asked if he could have extra $ that month to get it out of negative. The concept of not spending more than you have doesn't seem to get through.
emily - I pay our bills & control our finances. He basically deposits his check into our joint checking & then I tell him how much we can afford to take as fun money that period & he transfers it to his personal checking. It's that acct that he overdraft several times & then left it in the red for 3 months straight. I didn't know until he asked if he could have extra $ that month to get it out of negative. The concept of not spending more than you have doesn't seem to get through.
Oh trust me, I understand the :-| I was just wondering if he recognized that this is an area where his behavior is not the best, meaning he would understand why you wouldn't let him actually use the card. If he doesn't see any problem with what he did or doesn't understand why you wouldn't want to risk him doing the same with another account, then it does sound like there are some conversations that need to happen, whether with a counselor as others suggested or not.
Credit is a lot tighter these days. MH didn't have credit cards for a long time...paid cash for everything, so when we tried to apply for a mortgage, they said he didn't have a credit score. We tried to get him a secured CC at our local bank, but he was not approved. We only requested $300 ane we had way more than that in our checking account at the same bank. We eventually just added him to my credit card. I've been teaching him more about money management and how credit scores work (he previously did not know). I still manage the bills, but I trust him with it and he uses it wisely.
You are right. On time utility payments are NOT going to help build credit. They only hurt if they go to collections.
OP: I use to be a credit manager (helped people pay off debt and rebuild credit). Best thing to do if you dont' want to cosign something for your H (which I wouldn't if he's still being irresponsible) is to just sit and wait. Let all the bad reports roll off his credit report (they stay on for 7 years). Once they start rolling off one by one, you should start seeing small increases in his credit score. Once they are up to about 675 or so then he can try for a credit card. If you keep trying now for a CC in his own name, they'll just keep turning him down which in turn will keep knocking points off his score.
Or start putting money aside for a "secure" card which is a pre-paid credit card. He should be able to get approved for one of those by 600.
DH doesn't have bad credit, he has 0 credit. He just became a US resident & just got a SSN. From the suggestions on this thread, it looks like the best bet is to save up for the deposit for a secure cc. Thanks.
emily - I pay our bills & control our finances. He basically deposits his check into our joint checking & then I tell him how much we can afford to take as fun money that period & he transfers it to his personal checking. It's that acct that he overdraft several times & then left it in the red for 3 months straight. I didn't know until he asked if he could have extra $ that month to get it out of negative. The concept of not spending more than you have doesn't seem to get through.
I see, I guess I thought he had bad credit because you said he left his account in the negative for a few months. A secure card is his best bet in this case, but I'd still keep an eye out because bad credit history usually starts off with spending more than what you currently have.
If he doesn't have bad credit, I see no reason why he wouldn't be approved for a CC of his own, or as a joint CC owner with you. Or do you anticipate needing to take out a car loan or any other purchase requiring financing in the near future? You could always have him as a cosigner on that loan if so.
I don't see an issue with having a joint CC, honestly, as long as you stay involved in it. Check the balances and know what he's spending and when the bills are due. Is he overspending or just lazy about tracking things? It's easy to overdraw without truly overspending if you just aren't paying attention to your bank balance. I think this sounds like a problem that could easily be managed by open communication between you both regarding the credit card.
My 2 cents, my DH didn't have any credit until a few years ago either. A few old negatives from utility bills not paid when he was like 20 years old, but nothing else. After those fell off his report, we were able to add him as a 2nd person on his car loan (I'm first) and then got to put his name on the mortgage (again, I'm listed first). We also have a joint CC (that I manage) and he's more recently been able to get a CC of his own. It's not taken too long, his score isn't super high but I think low 700's or high 600's which is good enough for now. It will continue to climb as we continue to make on time monthly payments and hopefully will be high 700's within a few years when we want to qualify for our next mortgage.
If I were you, I'd work on him being accountable for keeping his checking account positive and just getting better money managing skills before I would tackle credit. Someone who cannot manage money (no offense, but he obviously can't) should NOT be trying to get a credit card.
However, I would save up money for a few months if I had to and do a secured credit card. That's what I'm doing now to build up credit. It was only a $300 deposit.
I can't help but wonder if this is a cultural thing. In Israel, where I'm from, being in negative, "in the red", can actually be quite common. People have their bank accounts in the red quite regularly, and oftentimes they don't get out of the red for months at a time. I don't know where your husband is from, but I wonder if this is the norm for his home country.
Regardless, I think it's very important that you stress to him that being in the red in this country is not the norm, and that if he continues to do so, having a credit card will not be in his near future. For now, I recommend you do not put him on one of your cards.
He should check his bank account regularly, either accessing it through his phone, through the Internet, or through the ATM, and he should develop a sense of responsibility towards his account, knowing that both yours and his future depends on it. More than about finances, it's about trust in the relationship, and if you don't feel you can trust him with a credit card, that does not bode well for your marriage.
I'm going to echo the suggestion for marriage counseling.