New Fed Rule Limits Credit Cards for SAH Parents!

[fortwildernessishome]

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

I agree, same here!!!!!!

 

[mrsklamc]

I don't know how many read the full article, but it points out that this could be a real burden on women trying to leave an abusive relationship.

 

[edk35]

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.

Like a pp said..there are plenty of ways to establish credit other than credit cards.

It is not the end of the world. Yes there are loads of stay at home people that have great credit and I am sure there are loads that have horrible credit. I know people right now that have more than 2 DISNEY VISA accts. per household? I have seen people post on here about having more than one acct. To me that is crazy...... credit card debt has gotten totally out of control in the past 10- 15 years or so. Yes it stinks for some people..... I do agree about that. I am not saying that ALL SAHP are the ones in debt either..... but it makes sense too to not give cards out to people that don't have an income coming in....with the way LIFE IS NOW. I am sure a lot of cc companies have been BURNED big time in the past so this does not surprise me.

 

[mhsjax]

Like a pp said..there are plenty of ways to establish credit other than credit cards.

It is not the end of the world. Yes there are loads of stay at home people that have great credit and I am sure there are loads that have horrible credit. I know people right now that have more than 2 DISNEY VISA accts. per household? I have seen people post on here about having more than one acct. To me that is crazy...... credit card debt has gotten totally out of control in the past 10- 15 years or so. Yes it stinks for some people..... I do agree about that. I am not saying that ALL SAHP are the ones in debt either..... but it makes sense too to not give cards out to people that don't have an income coming in....with the way LIFE IS NOW. I am sure a lot of cc companies have been BURNED big time in the past so this does not surprise me.

I agree with you on all points. Yes credit card abuse is terrible right now. Real estate is a mess, but don't think for one minute that the gov't didn't push backs to lend money, yes it is personal responsibility, but that darn gov't just like to stir up crap and then wash it's hands of it.

And really these days, no one has a guaranteed income, last time I checked people were losing their jobs left and right. I would feel better if the gov't could handle their own huge, unbelievable, disgusting mess, before telling companies how to handle their business.

Cc companies are like gamblers, they take chances, they love to loan money. I have said it before, when I worked at American Express Optima, if you paid off your card every month, you were NOT a good customer and would not qualify for as much of an increase as someone that revolved and made the company money. They don't want you to pay it off, they make no money what so ever off of these customers. If this where the case with everyone, they would go out of business. I hate credit cards, I cut mine up and refuse to use them, and yes they are in MY name.

 

[fortwildernessishome]

Like a pp said..there are plenty of ways to establish credit other than credit cards.

It is not the end of the world. Yes there are loads of stay at home people that have great credit and I am sure there are loads that have horrible credit. I know people right now that have more than 2 DISNEY VISA accts. per household? I have seen people post on here about having more than one acct. To me that is crazy...... credit card debt has gotten totally out of control in the past 10- 15 years or so. Yes it stinks for some people..... I do agree about that. I am not saying that ALL SAHP are the ones in debt either..... but it makes sense too to not give cards out to people that don't have an income coming in....with the way LIFE IS NOW. I am sure a lot of cc companies have been BURNED big time in the past so this does not surprise me.

Just curious what are the "plenty" of other ways to establish credit if you are denied a simple credit card. Seems like if you can't get a credit card it might be tough to get others to lend to you as well. Like I said, just curious.

 

[Sarahlovy]

Just curious what are the "plenty" of other ways to establish credit if you are denied a simple credit card. Seems like if you can't get a credit card it might be tough to get others to lend to you as well. Like I said, just curious.

I was wondering this as well. I am a SAHM with good credit, established primarily through my credit cards. I use credit cards extensively, but don't pay a dime of interest to the credit card companies. I don't know how I would have established credit without cards- I also have student loans, but one variable in a good credit score is a variety of debt.

I just applied for a Chase Disney card on the $200 offer, and they were still asking for household income.

 

[Lisa loves Pooh]

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!

It stinks, but I do feel that your last paragraph is a bit melodramatic.

One should be making money to go into debt and to go and get a credit card in my own name that is my own without any income is silly and I have always thought so.

Due to recent, economic events--it seemed that credit companies alone are to blame for this "Big Brother" law. They seemed to allow too many people too much access to something they could not pay back.

I do think that household income should be considered, but if it is--all household members should be applying for the credit card.

I've also heard many stories (especially on Dave Ramsay, not sure about Suze Orman) about financial infidelity. Some spouses don't let their spouse know they are applying for credit with their income and then that spouse runs up debt. In many cases, the spouse who did this has NO income.

All sorts of reasons for the lenders to verify that each and every applicant is making money when they apply for a single user card.

As far as I can tell, nothing preventing them from having cards with authorized users. So SAHP's won't be losing all access to credit. (I thought that was the case when I first head the story.)

This move has been sensationalized as anti-SAHP. But there are spouses who don't have kids at home and don't work and there are people who have no jobs and have no income at all.

 

[Lisa loves Pooh]

Just curious what are the "plenty" of other ways to establish credit if you are denied a simple credit card. Seems like if you can't get a credit card it might be tough to get others to lend to you as well. Like I said, just curious.

I established credit by getting a secure credit card many moons ago. I didn't have much of an income worthy of having a CC at the time. But I gave the bank some money, they held it, and my credit limit was set for that amount. Until that point, I was rejected for any and all requests I made to obtain credit back when they handed out free t-shirts like candy on campuses to just get you to apply. I had friends that got every card they applied for while all I had was a declining credit score for all the credit report views and a closet full of t-shirts.

 

[mhsjax]

It stinks, but I do feel that your last paragraph is a bit melodramatic.

One should be making money to go into debt and to go and get a credit card in my own name that is my own without any income is silly and I have always thought so.

Due to recent, economic events--it seemed that credit companies alone are to blame for this "Big Brother" law. They seemed to allow too many people too much access to something they could not pay back.

I do think that household income should be considered, but if it is--all household members should be applying for the credit card.

I've also heard many stories (especially on Dave Ramsay, not sure about Suze Orman) about financial infidelity. Some spouses don't let their spouse know they are applying for credit with their income and then that spouse runs up debt. In many cases, the spouse who did this has NO income.

All sorts of reasons for the lenders to verify that each and every applicant is making money when they apply for a single user card.

As far as I can tell, nothing preventing them from having cards with authorized users. So SAHP's won't be losing all access to credit. (I thought that was the case when I first head the story.)

This move has been sensationalized as anti-SAHP. But there are spouses who don't have kids at home and don't work and there are people who have no jobs and have no income at all.

YOU have to be careful, just because you are an authorized user doesn't mean you get credit for it. Sometimes you don't get anything and you don't get to build your credit that way.

To me, the whole thing is just the down fall of society. People getting divorced left and right, men and women cheating and lying. Spending way more than they should.

However not everyone that is in debt is there because they spent to much, some people really have had a total loss of income and some so drastic of a cut that there isn't much of a way to catch up. Not talking so much about credit cards, but mortgage pymts. These days everyone is a huge risk, I don't care what is being reported, people are still losing their jobs all the time and no one is exempt.

 

[Lisa loves Pooh]

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.

I agree!

 

[fortwildernessishome]

I established credit by getting a secure credit card many moons ago. I didn't have much of an income worthy of having a CC at the time. But I gave the bank some money, they held it, and my credit limit was set for that amount. Until that point, I was rejected for any and all requests I made to obtain credit back when they handed out free t-shirts like candy on campuses to just get you to apply. I had friends that got every card they applied for while all I had was a declining credit score for all the credit report views and a closet full of t-shirts.

I'm still interested in the "plenty" of other ways to establish credit that do not involve a credit card.

 

[MrsPete]

Just curious what are the "plenty" of other ways to establish credit if you are denied a simple credit card. Seems like if you can't get a credit card it might be tough to get others to lend to you as well. Like I said, just curious.

Buying and making payments on a car or a house, having utilities in your name, having insurance and taxes in your name, maintaining a checking and savings account. None of those things are affected by this new law. My first-ever credit was established in college; it was utilities on an on-campus apartment. With that and evidence that I had a job, I had no problem getting a first-time off-campus apartment without a co-signer. And after that I had no problem buying a car and a house.

DH and I didn't get a credit card 'til we were over 30, and now we use them only because they're convenient and give us rewards -- we survived without them. Prior to that we had no difficulty buying a house and several cars.

Credit cards are not the be-all, end-all of all things financial.

It stinks, but I do feel that your last paragraph is a bit melodramatic.

I agree. I'm not saying it's fair, but over-the-top melodrama usually strips away any sympathy I might've had for any cause.

And if I understand, this was mostly supposed to prevent no-income students from getting themselves head-over-heels in debt before they really understand what they're doing, right? I totally agree with that. Banks have no business lending to students who aren't going to be able to pay, and they have no business luring them into debt with gifts and discounts.

 

[Lisa loves Pooh]

YOU have to be careful, just because you are an authorized user doesn't mean you get credit for it. Sometimes you don't get anything and you don't get to build your credit that way.

To me, the whole thing is just the down fall of society. People getting divorced left and right, men and women cheating and lying. Spending way more than they should.

However not everyone that is in debt is there because they spent to much, some people really have had a total loss of income and some so drastic of a cut that there isn't much of a way to catch up. Not talking so much about credit cards, but mortgage pymts. These days everyone is a huge risk, I don't care what is being reported, people are still losing their jobs all the time and no one is exempt.

It truly does not concern me.

If one got divorced, they would (presumably) have to get employment.

If you bought the home together, if you both signed for the loan, the newly divorced spouse has credit. Once they get a job, they shouldn't have any problem obtaining a credit card. Now, the limit may not be what they like. But it probably shouldn't be unless they get an income on par with their prior household income.

So no--*I* do not have to be careful, even if something as unfortunate as divorce were to occur.

Income-less people should not have stand alone credit for the very reason you state. They could get a divorce, so their household income just became $0 until they get a job of their own.

 

[jm-mom]

I am a sahm mom and probably will get flamed for this, but considering I earn no money, it wouldn't even occur to me to apply for a credit card. I also wouldn't apply to borrow money because I don't technically have an income. Yes, sahm moms DO work very hard 24/7 but I can see why creditors won't give them the cards. You can build up your credit by being on a car or home loan with your husband or on a rental lease. God forbid the marriage ends and you need your own credit, you have at least those things with your name on them.

 

[mhsjax]

Funny, but years ago, when a SAHP applied for their own credit cards, there didn't seem to be much of a problem. Maybe we should look at what really is the problem. It isn't SAHM ,it is society as a whole . And what makes any of you think that if a man leaves his wife with no income that he is any better risk than a SAHM. To me that person is scum and shouldn't be entitled to anything. And wives have no business running up a bill that they can't pay.

 

[Lisa loves Pooh]

I'm still interested in the "plenty" of other ways to establish credit that do not involve a credit card.

I think you are just looking to cause dissent to prove your case that a piece of plastic is necessary for the SAHP or their financial life will be doomed.


But for sake of argument, Mrs Pete shared some examples below.

And FWIW, there are still underwriters who will underwite home mortgages for the debt free individual who could easily pay their mortgage payment but don't have a debt history that satisfies instant approval lenders.

We did not buy a home this way--we could go "instant approval" this last time. But it is an option that is available.

 

[Marionnette]

Let me put it this way. As one half of a married couple, I am legally responsible for any debts incurred by either one of us during the course of our marriage. Since that is the case, I should also be entitled to the benefits of our shared income. That includes access to credit based on *our* income if I desire to take advantage of it.

 

[mhsjax]

It truly does not concern me.

If one got divorced, they would (presumably) have to get employment.

If you bought the home together, if you both signed for the loan, the newly divorced spouse has credit. Once they get a job, they shouldn't have any problem obtaining a credit card. Now, the limit may not be what they like. But it probably shouldn't be unless they get an income on par with their prior household income.

So no--*I* do not have to be careful, even if something as unfortunate as divorce were to occur.

Income-less people should not have stand alone credit for the very reason you state. They could get a divorce, so their household income just became $0 until they get a job of their own.

Sorry, I meant "you" in general, not really you.

 

[Lisa loves Pooh]

Let me put it this way. As one half of a married couple, I am legally responsible for any debts incurred by either one of us during the course of our marriage. Since that is the case, I should also be entitled to the benefits of our shared income. That includes access to credit based on *our* income if I desire to take advantage of it.

Not true.

 

[mhsjax]

Let me put it this way. As one half of a married couple, I am legally responsible for any debts incurred by either one of us during the course of our marriage. Since that is the case, I should also be entitled to the benefits of our shared income. That includes access to credit based on *our* income if I desire to take advantage of it.

Thank you.