New Fed Rule Limits Credit Cards for SAH Parents!

[Dacky619]

Well, it's huge for SAHM's. Any human being should be allowed to have their own credit card-in their name, as long as they can prove they are worthy. I don't have 'income' but I don't need a credit card except for travel when I don't want to carry cash. I do not, however, want to be required to include my spouse in my application. My bank accounts are in my name and that's how I pay my bills. He more relies on my money than I on his yet this law would put me dependent on him as the 'earner' in the family. Stupid and sexist.

If you applied for a new credit card today (pretend this regulation never happens), would you use your spouse's income on the application?

 

[aprilgail2]

SAHP do have income and assets, they share those of their spouses. IF they don't, then I feel sorry for them in that marriage. SAHP are not indentured servants or children! If a SAHP would charge their spouse for the work they do, most working spouses wouldn't be able to afford them!!


When a parent stays home, yes they make sacrifices. Giving up their financial independence shouldn't be one of them. Consider a marriage a corporate merger...the SAHP is a major stock holder and gets to vote etc...and collects dividends and owns 50 percent of the corporation. That gives them assets and income!! Not honey I need your credit card so I can buy a dress! Geez....

.

Yes but what happens when something happens to that partner that makes the money, they divorce them or pass away, and the then SAHP is stuck working a job that pays 10 bucks an hour and is just about paying for rent food and kids needs and the credit card goes last on that list of things to get paid. Not all families have large savings accounts and some don't even carry life insurance so how would the credit card company then get paid???
I think its a good decision on their part to protect their own company!

 

[ilovemk76]

Yes but what happens when something happens to that partner that makes the money, they divorce them or pass away, and the then SAHP is stuck working a job that pays 10 bucks an hour and is just about paying for rent food and kids needs and the credit card goes last on that list of things to get paid. Not all families have large savings accounts and some don't even carry life insurance so how would the credit card company then get paid???
I think its a good decision on their part to protect their own company!

ITA


A CC is not the only way to get yourself a credit history. Put the water bill, electric bill and other types of bills in SAHPs name.

Also how many SAHPs never worked? Get a CC when you are working, be it when you are single or newly married.

 

[Colleen27]

A CC is not the only way to get yourself a credit history. Put the water bill, electric bill and other types of bills in SAHPs name.

I'm curious... Does anyone here have any personal experience that supports that idea? I read about it a LOT but my personal experience is that none of those things report to the credit bureaus. I'm sure they would if an account went into collections but I've had all our utilities in my name since 2001 and don't have a single record on my credit report reflecting any of those accounts. My credit score is dismal from disuse and I don't mind, that's a decision I made consciously with full understanding of the consequences, but I think it is wrong to keep perpetuating the idea that paying utilities and other non-debt obligations will build a credit score when at best it varies from company to company or place to place as to whether those accounts are reported.

 

[Danibelle]

I think that working parents STILL RAISE THEIR OWN KIDS.

Absolutely!

OP: I think the time is now for SAHM's (and D's) to be looking at taking some credit out in their own name (even a small amount) and also making sure they are on their respective utililities. They could make some small purchases and pay them completely off. Also, the reality in today's world is that most (not all) of us, both male and female, need a work history at some point. Maybe not every year but some or most years! Sorry about being on a soapbox. It's because I learned some things the hard way and I had to rush into a job after being a SAHM without any credit or utilities in my name.

 

[LovableGluttons]

To me, it makes perfect sense. You need income or assets in order to have credit extended to you. It makes no sense to extend credit to someone who is dependent on the good will of another individual in order to make payments.

 

[jm-mom]

Does this new law apply only to major credit cards like Mastercard or Visa? It is possible to apply and get a store credit card in just a sahm mom's name using dh's income. I have done this in the past and dh is not connected to the card at all. Under "other income" or "household income" I put his salary. However, if this new law applies ro all credit cards, then this is no longer possible. Does anyone know if this law applies to secured credit cards where you have to put down "x" number of dollars and that becomes your credit limit? That's another way to help establish good credit. After a period of time your deposit is refunded and the card is no longer considered secured but just a regular credit card.

 

[FeFeMJ]

Does this new law apply only to major credit cards like Mastercard or Visa? It is possible to apply and get a store credit card in just a sahm mom's name using dh's income. I have done this in the past and dh is not connected to the card at all. Under "other income" or "household income" I put his salary. However, if this new law applies ro all credit cards, then this is no longer possible. Does anyone know if this law applies to secured credit cards where you have to put down "x" number of dollars and that becomes your credit limit? That's another way to help establish good credit. After a period of time your deposit is refunded and the card is no longer considered secured but just a regular credit card.

It shouldn't apply to secured cards because they are based on the funds pledged to secure them and not income. At the credit union I work we don't even have to ask about income for these types of accounts as the person could close the account and pay it back using the pledged funds if they can no longer make the normal payments or pay it off with other funds.


Felicia

 

[kimara]

I understand the need for the rule change. I am a Stay at home Mother. I pay all the bills in our home.

This won't have any effect in my life as I already have a credit card in my name on which my husband is an authorized user. I will encourage my daughter to have a credit card in her own name before she becomes a stay at home parent. The system isn't that difficult to deal with as long as we plan. For those not planning ahead it could be a big headache.

 

[ZachnElli]

Not true.

I have a friend who was by far the breadwinner in the household. Her now ex-husband spent most of the time unemployed. He was not a stay at home dad as she did put her kids in daycare. When they got divorced, he had ran up $200,000 in unsecured debt. He filed chapter 7, the creditors then went after her, legally. She had to file chapter 11, I think it is, to repay his debts. She could not get out of his debts and she couldn't file chapter 7 because she made too much money. She didn't know about his debt until the judge in her divorce took into her chambers and showed her.

 

[Lisa loves Pooh]

I have a friend who was by far the breadwinner in the household. Her now ex-husband spent most of the time unemployed. He was not a stay at home dad as she did put her kids in daycare. When they got divorced, he had ran up $200,000 in unsecured debt. He filed chapter 7, the creditors then went after her, legally. She had to file chapter 11, I think it is, to repay his debts. She could not get out of his debts and she couldn't file chapter 7 because she made too much money. She didn't know about his debt until the judge in her divorce took into her chambers and showed her.

As someone said, it depends on the state---

So such a statement as true is not true for all situations when there are states where laws are different.

Likely in FL (with a good attorney) or VA (where her name was not on the debt), she would not be legally liable. But creditors are infamous for not always followng the law.

My statement "not true" still stands because it is not true in all cases. The statement made was false.

 

[JoiseyMom]

Yes but what happens when something happens to that partner that makes the money, they divorce them or pass away, and the then SAHP is stuck working a job that pays 10 bucks an hour and is just about paying for rent food and kids needs and the credit card goes last on that list of things to get paid. Not all families have large savings accounts and some don't even carry life insurance so how would the credit card company then get paid???
I think its a good decision on their part to protect their own company!

This can happen even if there is 2 parents that work, and 1 income is gone. Nothing is guaranteed. CC companies build in default into their business plans. They know this is going to happen. Granted it happened more then expected..but then again, they were giving credit cards to college students with no incomes hoping they would rake up hugh bills and their parents would bail them out, or they would be paying hugh interest for years. They were giving credit to people that already owed hugh amounts and had bad credit, but they gave them it anyway at astronomical interest rates. I do not feel sorry for the CC companies in any way shape or form, they are predators (yes this is my opinion). They are still raking in the bucks!

 

[Lisa loves Pooh]

This can happen even if there is 2 parents that work, and 1 income is gone. Nothing is guaranteed. CC companies build in default into their business plans. They know this is going to happen. Granted it happened more then expected..but then again, they were giving credit cards to college students with no incomes hoping they would rake up hugh bills and their parents would bail them out, or they would be paying hugh interest for years. They were giving credit to people that already owed hugh amounts and had bad credit, but they gave them it anyway at astronomical interest rates. I do not feel sorry for the CC companies in any way shape or form, they are predators (yes this is my opinion). They are still raking in the bucks!

But it seems that credit is now issued on a stand alone basis for the individual.

I'm a bit lost as to why folks will claim that their spouse's income is theirs and they share and all that....but they are unwilling to accept that they will now have to have a shared card.

You (general) want to claim their income which they earn on their SSN, but you don't want the law to prohibit you from using their and their income so that you can get a credit card of your very own. You are contradicting yourself. "ours so i can get MINE without HIS" (or hers)

I can't buy a house by myself. I have no income. I can apply jointly, but I need my husband's income, his social, his credit application. The amount borrowed is immaterial because the principle is the same.

Income needed to borrow consumer money.

 

[ZachnElli]

As someone said, it depends on the state---

So such a statement as true is not true for all situations when there are states where laws are different.

Likely in FL (with a good attorney) or VA (where her name was not on the debt), she would not be legally liable. But creditors are infamous for not always followng the law.

My statement "not true" still stands because it is not true in all cases. The statement made was false.

And in some cases it is true, so your statement isn't 100 percent accurate either. The statement made is not false in all states, so you can't give one blanket answer, that would be a false statement in some states. I can circle talk too!

 

[Lisa loves Pooh]

And in some cases it is true, so your statement isn't 100 percent accurate either. The statement made is not false in all states, so you can't give one blanket answer, that would be a false statement in some states. I can circle talk too!

We are getting into semantics, but my statement was not incorrect. What the person said was an absolute and not true.

Anyway--this is all silly.

Folks want their cake and eat it too. They want to turn this sexist and it isn't the case.

They want claim to someone else's income but not their SSN to apply for credit. It is ridiculous and I am happy that the government stepped in to get around this loophole.

 

[mhsjax]

We are getting into semantics, but my statement was not incorrect. What the person said was an absolute and not true.

Anyway--this is all silly.

Folks want their cake and eat it too. They want to turn this sexist and it isn't the case.

They want claim to someone else's income but not their SSN to apply for credit. It is ridiculous and I am happy that the government stepped in to get around this loophole.

Why are you so happy, this isn't going to help CC companies get more money. I can tell you from personal experience that people with jobs don't pay. And frankly, any person that leaves his spouse and kids with no form of income to pay bills, doesn't have the decency to pay their CC bill either.

Now I don't think lying is the answer, but a spouse should be able to apply with the other spouses permission.

 

[Planogirl]

I'm curious... Does anyone here have any personal experience that supports that idea? I read about it a LOT but my personal experience is that none of those things report to the credit bureaus. I'm sure they would if an account went into collections but I've had all our utilities in my name since 2001 and don't have a single record on my credit report reflecting any of those accounts. My credit score is dismal from disuse and I don't mind, that's a decision I made consciously with full understanding of the consequences, but I think it is wrong to keep perpetuating the idea that paying utilities and other non-debt obligations will build a credit score when at best it varies from company to company or place to place as to whether those accounts are reported.

I can tell you that most utilities are not reported on at least one of the credit bureaus. There are a few exceptions such as a gas company I can't remember the name of right now and sometimes Verizon but usually you only see utilities if you're dealing with collection issues.