New Fed Rule Limits Credit Cards for SAH Parents!

[JoiseyMom]

http://www.creditcards.com/credit-c...parent-credit-cards-household-income-1282.php

Wow..that is all I can say. I am currently a SAHM, and my credit is better then my DH's. We have been married 15 years and I came into the relationship with awesome credit. So his is good because of mine. So now, I can't even apply for a new one anymore.

For those starting out or those that have no credit and want build a credit history will not be able to. This is just insane. It is saying that our value as parents is ZERO!

 

[Dacky619]

Unless I'm missing something, you can still be an authorized user on another account, and that can be used to build your own credit (not that pp needs it, but those starting out might). Honestly, I don't see a big difference between having a card where the significant other is the primary user verse using their income to get a card for yourself.

 

[a1tinkfans]

I read it as "Big Brother" once again, stepping in and telling us/consumers/SAHM that they know us better than we know ourselves, (we cannot control the impulse to buy without being responsible to pay it off, its right their in black and white)
AND that they/WE are not credit worthy because they/We are not financially independent.

The new FEDERAL rule slid by many.....it will have a HUGE impact on many SAHM/D's and the like.
It goes into effect 10/1/11 so if you fit that criteria, Id be getting credit in your own name to establish your "worth" ASAP!

To me, its a step backwards for women and a Lessening of their value to this Society as a whole...wasn't it so short a time ago that they said, "a village raises a child...etc" Now this, which one is it???? Value or Not?
Glad It does not affect me, but still makes me Sick!

 

[mhsjax]

Unless I'm missing something, you can still be an authorized user on another account, and that can be used to build your own credit (not that pp needs it, but those starting out might). Honestly, I don't see a big difference between having a card where the significant other is the primary user verse using their income to get a card for yourself.

Not necessarily. The credit card I worked for didn't include authorized users when reporting payment histories, they got no credit what so ever.

 

[mhsjax]

I read it as "Big Brother" once again, stepping in and telling us/consumers/SAHM that they know us better than we know ourselves, (we cannot control the impulse to buy without being responsible to pay it off, its right their in black and white)
AND that they/WE are not credit worthy because they/We are not financially independent.

The new FEDERAL rule slid by many.....it will have a HUGE impact on many SAHM/D's and the like.
It goes into effect 10/1/11 so if you fit that criteria, Id be getting credit in your own name to establish your "worth" ASAP!

To me, its a step backwards for women and a Lessening of their value to this Society as a whole...wasn't it so short a time ago that they said, "a village raises a child...etc" Now this, which one is it???? Value or Not?
Glad It does not affect me, but still makes me Sick!

Yep, makes me sick. That darn Govt needs to keep its nose out of families business. Lets penalize mom's and dads for staying home and raising kids, you know actually doing our jobs. And no offense to those that work, I get it I understand it, but why should we be penalized for raising our own kids. It really pisses me off.

 

[Marionnette]

Unless I'm missing something, you can still be an authorized user on another account, and that can be used to build your own credit (not that you need it, but those starting out might). Honestly, I don't see a big difference between having a card where the significant other is the primary user verse using their income to get a card.

And I don't know how not someone not being able to get their own credit card means their value is zero.

So what happens if the marriage breaks up? The SAHP ends up leaving with no credit cards in their own name.

And piggybacking on someone else's account (where you are an authorized user) is no longer a way to establish a credit record. So a SAHP would have a difficult getting a cell phone, signing a lease or buying a car. They would end up having to make huge security deposits in order to get utilities turned on in some markets.

It's the unintended consequence of the government trying to protect college students from the banks who inundated them with credit card offers knowing that if they went overboard Mommy & Daddy would bale them out.

 

[mhsjax]

So what happens if the marriage breaks up? The SAHP ends up leaving with no credit cards in their own name.

And piggybacking on someone else's account (where you are an authorized user) is no longer a way to establish a credit record. So a SAHP would have a difficult getting a cell phone, signing a lease or buying a car. They would end up having to make huge security deposits in order to get utilities turned on in some markets.

It's the unintended consequence of the government trying to protect college students from the banks who inundated them with credit card offers knowing that if they went overboard Mommy & Daddy would bale them out.

Well if it is the consequence of protecting college students, then they need to go after the sleezebag credit card companies. They are like vultures. I know, like I said I worked for one. A big one. And yes I saw numerous times that parents would have to bail their kids out.

 

[disneysnowflake]

Well if it is the consequence of protecting college students, then they need to go after the sleezebag credit card companies. They are like vultures. I know, like I said I worked for one. A big one. And yes I saw numerous times that parents would have to bail their kids out.

Isn't that the truth. At the local university that I live near, the incoming freshmen can apply for credit cards as soon as they arrive. I'm pretty sure the university makes money for allowing these credit card companies to issue cards on campus. You can be 18 with no job and get major credit cards with pretty large credit limits.

I find this new law outrageous. While I'm not a fan of credit cards, how in the world can a stay at home parent establish a credit rating? Could you imagine what it would be like for a stay at home parent to do much of anything if the working spouse dies or divorces without any credit of their own?

Some employers even require good credit in order to work for them. What about getting an apartment or even qualifying for auto insurance with no credit rating?

I guess the people who created this law will end up having very good retirement packages and are a lot out of touch with those people who aren't as lucky financially as they are. That's just my opinion, though.

 

[Disneybuckeye]

I did not read the link, but if SAHMs cannot obtain credit in their name, then I do agree that is bad. Actually, the cards we use primarily now, I am the main cardholder even though DH makes 5 times what I do. If there is a problem with the card I am the one who deals with it, so I have to be the primary. As I was a SAHM for many years, and work many less hours than DH, dealing with these issues was in my portion of the division of labor. DH doesn't have the time to sit on the phone for a half an hour because we were dup charged on something.

 

[edk35]

So what happens if the marriage breaks up? The SAHP ends up leaving with no credit cards in their own name.

And piggybacking on someone else's account (where you are an authorized user) is no longer a way to establish a credit record. So a SAHP would have a difficult getting a cell phone, signing a lease or buying a car. They would end up having to make huge security deposits in order to get utilities turned on in some markets.

It's the unintended consequence of the government trying to protect college students from the banks who inundated them with credit card offers knowing that if they went overboard Mommy & Daddy would bale them out.

My dd is in college and has been getting offers since high school...however we have NOT let her open one credit card acct. She uses her debit card/checking acct. NOW I am thinking we might better let her open one.

 

[edk35]

Yep, makes me sick. That darn Govt needs to keep its nose out of families business. Lets penalize mom's and dads for staying home and raising kids, you know actually doing our jobs. And no offense to those that work, I get it I understand it, but why should we be penalized for raising our own kids. It really pisses me off.

I think that working parents STILL RAISE THEIR OWN KIDS.

 

[Marionnette]

I think that working parents STILL RAISE THEIR OWN KIDS.

True that. But the person who has a paycheck to show for their efforts is not the one who is being caught up in this shortsighted regulation. It's the person who elects to work for no pay who is.

 

[zscfan]

OK, flame away----my personal opinion is that if you don't personally have the income, you shouldn't have a credit card. That goes for college students and SAHP.

Would you feel comfortable loaning money to someone with no income? What if your spouse left you and you are penniless? Unless you are in a community property state and your spouse is jointly liable for your debts. I understand that many men and women choose to be SAHP and that works out for their families, but this is just a sacrifice that has to be made. Giving someone without their own income a credit card is just as bad as giving out mortgages to people who haven't established their ability to repay.

Just my personal opinion and I'm not going to be drawn into a battle with anyone over it.

 

[mhsjax]

True that. But the person who has a paycheck to show for their efforts is not the one who is being caught up in this shortsighted regulation. It's the person who elects to work for no pay who is.

Thank you, for that and yes I agree that working parents are raising their kids, but why should the non working outside the home be penalized for doing what is what we feel is best for our families.

And I am sorry but SAHP do put in more time with the kids that working parents, that isn't a judgement it is fact. I will also say that in about 2 years I will be back at work and my kids will still be at home. But why does the gov't feel the need to basically force parents to work full time in order to establish credit.

 

[mhsjax]

OK, flame away----my personal opinion is that if you don't personally have the income, you shouldn't have a credit card. That goes for college students and SAHP.

Would you feel comfortable loaning money to someone with no income? What if your spouse left you and you are penniless? Unless you are in a community property state and your spouse is jointly liable for your debts. I understand that many men and women choose to be SAHP and that works out for their families, but this is just a sacrifice that has to be made. Giving someone without their own income a credit card is just as bad as giving out mortgages to people who haven't established their ability to repay.

Just my personal opinion and I'm not going to be drawn into a battle with anyone over it.

Well sorry but as my DH says, his income IS my income.

 

[fakereadhed]

OK, flame away----my personal opinion is that if you don't personally have the income, you shouldn't have a credit card. That goes for college students and SAHP.

Would you feel comfortable loaning money to someone with no income? What if your spouse left you and you are penniless? Unless you are in a community property state and your spouse is jointly liable for your debts. I understand that many men and women choose to be SAHP and that works out for their families, but this is just a sacrifice that has to be made. Giving someone without their own income a credit card is just as bad as giving out mortgages to people who haven't established their ability to repay.

Just my personal opinion and I'm not going to be drawn into a battle with anyone over it.

No flames here. I do think that this rule will adversely affect credit card companies. As a SAHM I'm the primary shopper in the family. My credit rating is better than DH's. The credit card companies really dislike him because he doesn't charge often enough. I do most of the shopping and spending. Gone are the days when you can use your hubby's card. You need your own and if SAHM are out of the equation credit card spending will go down.

 

[MrsPete]

For those starting out or those that have no credit and want build a credit history will not be able to.

Don't blow it out of proportion: It's limiting ONE ASPECT: Credit cards. Credit is built in many other ways.

A whole lot of people would be better off if they'd never been able to get a credit card.

 

[edk35]

Thank you, for that and yes I agree that working parents are raising their kids, but why should the non working outside the home be penalized for doing what is what we feel is best for our families.

And I am sorry but SAHP do put in more time with the kids that working parents, that isn't a judgement it is fact. I will also say that in about 2 years I will be back at work and my kids will still be at home. But why does the gov't feel the need to basically force parents to work full time in order to establish credit.

Not necessarily........... I work at a school....I put my youngest son on the bus, and I work and get home before he does.

 

[mhsjax]

Not necessarily........... I work at a school....I put my youngest son on the bus, and I work and get home before he does.

I am not going to argue over this. I don't care if people work out side the home or not, but as a general rule, SAHP put in more time, always exceptions. I still think it is a shame that SAHP are being punished for the choice to stay home and raise their kids. This doesn't apply to me, I have credit, but I hate the idea of future parents being forced to make a decision and it is just further involvement of a Gov't that can't handle itself, much less the affairs of anyone else.

 

[FeFeMJ]

Well sorry but as my DH says, his income IS my income.

I think this is great and how a marraige should be, however from the lender's standpoint I can see where they might not see it this way as no one ever really plans to go into a marriage with divorce in mind. And unfortunately I have talked to many individuals (women and men) who's spouses have left them and cleaned out their accounts, leaving them with no funds, but many debts.

I don't think the government should regulate this... I work for a credit union and it has always been our rule that the income has to be in your name to claim it, but if a lender wants to take the risk of allowing household income, why shouldn't they be able to? The lenders should be able to decide whether household income is acceptable.

Just my opinion...

Felicia