CC Q-Apply Jointly or stay as authorized user?

[Aquatica]

Hi everyone,

H and I are unsure what to do. We are eyeing a credit card that has better cash back advantages and perks than the current credit card we use.

But should we apply jointly or continue to apply in his name and add me as an authorized user (I have full POA)? H thinks me having no job could be a mark against us but I'm thinking our combined credit scores would benefit us.

Any advice is appreciated!

[minzy]

Someone else may know more about this in which case I would but defer to them but here are my thoughts... I’d say your level of responsibility on the next credit card depends on whether you might need additional credit at some other time in the future. If you hypothetically need to mortgage a house yourself in the future, it would probably be beneficial to you to have a continued history established of utilizing credit responsibly. After I left the workforce, we got a credit card with me as the primary so I could maintain a good credit rating, in the event I ever needed it. It could also potentially be beneficial for a credit or background check if you were to re-enter the workforce.

[lemoncupcake]

Not an expert, but I’d think that your lack of income would only affect your credit limit potentially, not necessarily a denial of your application if your credit is otherwise good. Are you wanting to carry a high balance for a project, or just use it for revolving expenses and pay off each month?

[goldengirlz]

I agree that as long as you have a solid credit history, it shouldn’t matter. You’ll get approved (or not) based on your total household income, not your job status. In fact, even when I apply for cards on my own, I always enter our combined HHI, not just what I personally earn — because it’s all money I have access to (and how the question is phrased on the application.)

[Deleted]

Not sure when you're planning to apply, but keep in mind that right now, approvals are getting harder right now due to tightening by all the lenders due to the COVID crisis.

[imojoebunny]

I don't work. I have my own credit card both for my credit and for my piece of mind. DH and I have been together for 21 years, and I don't expect him to go anywhere, but I need my own credit. I am on two of our mortgages with DH (rental home and our main house), but otherwise have no other individual credit, so it is good for me to have the one credit card, only in my name. For a while, I could not get a credit card in my name because I had no income, even though I had significant assets in my name. They repealed that law, thankfully, and now I can use our household income to qualify, without having DH on the card.

[wildrice]

Jul 5, 2020 14:54:26 GMT -5 goldengirlz said:

I agree that as long as you have a solid credit history, it shouldn’t matter. You’ll get approved (or not) based on your total household income, not your job status. In fact, even when I apply for cards on my own, I always enter our combined HHI, not just what I personally earn — because it’s all money I have access to (and how the question is phrased on the application.)

Agreed. Applying for a credit card is not as in depth as a mortgage, it's basically just a self report of income and running your credit score. They would probably have no idea that you don't have a job, as long as your HHI and credit scores are high enough.

FWIW my H is an authorized user on my credit cards and it had no impact on our ability to take out other credit. I assume if I died or something, he'd just apply for his own card. I wouldn't spend too much energy worrying over this one, it probably makes little difference either way.

[Susie]

I learned through my dad that you should always have a credit card in your own name, or be joint owners with a spouse.  

He was always the authorized user on my parents' accounts; my mom was primary.  He was the breadwinner, but she was the one who handled everything, applied for cards, made all the decisions, etc.

She passed away a few years ago.  When he let financial institutions know, they closed all the accounts because they were in her name only.  He didn't realize that was the case, because she always just handed him his cards with his name on them when they came.  As an authorized user he had no standing to deal with the accounts.  He wound up with no credit cards at all, and had a very difficult time doing normal basic things - gas! groceries! - until he could apply for his own new card, get approved, and get a card in-hand.  That's shit you don't need when you're dealing with all that.

Your cards don't all need to be joint, but at least one should be, or you should each have one alone.

H & I have one that's joint, it's our oldest one.  I added him to it when we were first married, prior to house shopping, because I had a better credit score and it boosted his to get the benefit of my oldest account's payment history.  The other one he's just the authorized user because it was easy when I applied.

[flygirl]

I’ve noticed that many credit cards will have a primary person now with authorized users fa joint applicants-at least ones I’ve done online. H and I each have 2 cards where we are primary, but both of us have income (not sure if that’s state specific).  One of my cards does not show up on his credit report -not sure why.

[Aquatica]

Thank you for you replies. We've been talking it through and will do the joint one and later get me one in my name.