New Fed Rule Limits Credit Cards for SAH Parents!

[Lisa loves Pooh]

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.

Not all stay a home spouses are parents.

This is turning into a foolish sexist argument when it is anything but sexist.

How is the SAHM or SAHM different than the married college student who doesn't work but goes to school full time?

 

[Marionnette]

Not true.

Maybe not in your state? Certainly that is the case here. If my husband were to pass away tomorrow, his credit card debt would not die with him.

 

[mhsjax]

Not true.

OUr first house I was working and co singed the mortgage, I stopped working not long after to be a SAHM. So yep I was responsible for that house but I guess I wouldn't get the benefit of a credit card if I applied later when I wasn't working.


For me it is the principle, I have them in my name, from when I was working, my mom used my Dad's income, he was a straight up guy, he worked but it was THEIR money. He didn't like them but he knew she had them , she did most of the shopping and it was easier. He would never had left her or divorced her, but she had her money that he gave her, and she used that to pay her credit card bill with.

 

[fortwildernessishome]

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.

Thanks for the info! I actually thought that when I took out a home improvement loan last year and a loan for my car, they primarily looked at my credit through credit cards, didnt realize that paying my utilities and having a bank account mattered so much. Learn something new everyday!!

 

[mhsjax]

Not all stay a home spouses are parents.

This is turning into a foolish sexist argument when it is anything but sexist.

How is the SAHM or SAHM different than the married college student who doesn't work but goes to school full time?

Oh never mind, I am tired of this. you all can think what you want, free country and all. I think it is a sad statement that so many of you feel that a SAHP isn't entitled to any of the perks that the working partner has, and yep to me this is a slap in the face, just based in the idea. Glad my DH has more respect than that. To me it is equivalent of you don't work, you aren't worthy. I wonder where it will stop.

 

[Lisa loves Pooh]

Maybe not in your state? Certainly that is the case here. If my husband were to pass away tomorrow, his credit card debt would not die with him.

His estate would have to settle it. If he had no life insurance, the creditor could not come after you because you did not sign your name.

You are indirectly responsible in that regard, but you are not legally responsible.

Here is a blurb in Massachusetts from a Divorce Attorney--keep in mind it says the Judge "can" order you to pay--doesn't say the law will MAKE you pay. There can of course be mitigating factors. http://www.dunningkirrane.com/advisor.html


Another state has a different law.

No judge can judge the binding contract of a creditor. Which is why some ex-spouses get stuck paying their own bills even if a judge decreed otherwise. So while a judge can say your husband MUST pay, VISA can still bother you for the credit card you obtained without an income. In my sister's divorce--she declared bankruptcy herself to avoid any misdeeds by her ex-post divorce. Of course these were joint cards. But again--while the courts can tell you one thing, the creditors do not care. They only care about their contract.


I have a friend whose husband (whom she was in the beginning stages of a divorce) die from injuries sustained in an accident. She did not sign any paperwork in the hospital. I think because they had a standing separation order--there was something to it, but this happened a few years back and my memory is sketchy....anyway, she did not sign any paperwork in the hospital.

He had no insurance and no life insurance. His week or so stay in ICU--had to be written off. They could not force her to pay as she didn't authorize anything. It was a blessing in disguise. She was a working mom (owns her own business), but that would have bankrupted her.


In Florida, judges can use discretion and distribute debts inequitably.


Virginia, where I live now--single debts are the responsibility of the spouse who acquires them. The state cannot force one spouse to pay the debt of the others. Joint debts have different rules, but are not subject to the new law mentioned in the OP--since joint debts are unaffected.


But the point is--it isn't true everywhere, and where it is true, VISA doesn't care what your judge says and will bug you if your spouse doesn't pay. Your lack of income will be an issue in that case and your credit negatively affected until it is remedied by the spouse.

 

[fortwildernessishome]

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.

I am a bit insulted by your post, I certainly was NOT looking to "cause dissent" by asking a simple question. Where do you get that I think that a "piece of plastic is necessary for a SAHP or their financial life is doomed"?????? I asked a simple question. I was curious about other ways to establish credit without a credit card, plain and simple. I have not even involved myself in the debate about SAHP not being able to get credit. I suggest you read my posts in the future and not make them into something they clearly are not!!!! People like you make the Dis, an "interesting" place for sure!!!!

 

[Lisa loves Pooh]

OUr first house I was working and co singed the mortgage, I stopped working not long after to be a SAHM. So yep I was responsible for that house but I guess I wouldn't get the benefit of a credit card if I applied later when I wasn't working.


For me it is the principle, I have them in my name, from when I was working, my mom used my Dad's income, he was a straight up guy, he worked but it was THEIR money. He didn't like them but he knew she had them , she did most of the shopping and it was easier. He would never had left her or divorced her, but she had her money that he gave her, and she used that to pay her credit card bill with.

Your house was a joint debt. You promised to pay. So of course you are responsible.

My FL home, I am on the loan, but this house, I am only on the title. (due to logistics and for ease of closing, my name was not needed for the loan and it gave my husband less paperwork to sign with the POA he had--he closed while I was in the last month of pregnancy, so I phsyically could not be in that state.)

So--while the house is mine, My husband bought it. He can't sell it without me, but I am not liable for the loan.

For your mom--nothing in this new law prevents her from being an authorized user on the card.

 

[mhsjax]

I am a bit insulted by your post, I certainly was NOT looking to "cause dissent" by asking a simple question. Where do you get that I think that a "piece of plastic is necessary for a SAHP or their financial life is doomed"?????? I asked a simple question. I was curious about other ways to establish credit without a credit card, plain and simple. I have not even involved myself in the debate about SAHP not being able to get credit. I suggest you read my posts in the future and not make them into something they clearly are not!!!! People like you make the Dis, an "interesting" place for sure!!!!

Ha Ha. YOu know, I should learn also. Everyday I say I won't post here. Most people I know think I am crazy, they don't get people here either, and as so many friends have said to me, why in the world do you care what a bunch of strangers think, and I have also expressed some of the opinions on these boards and they look at me like I am crazy for even coming here. I think they are right.

See you guys later. Have a good life.

 

[a1tinkfans]

Has it gotten hot in here?

Several have said that people with no jobs/income should not get credit. I understand your point. I am one of those that believes that your debt is your own to pay (and am not overly sympathetic to those with the mortgages that they suddenly could not pay; because they should not have gotten them in the first place!)

However, to me, the law is another reflection of the government regulating what they think is best for people. If we want the Banks and credit card companies to be more responsible for who they lend too, go after them.
The law irks me, I really do feel it is a jab at the hardworking moms/dads, ect that choose to raise their families and not work outside the home.
Honestly, it really seems like its another way to penalize those that make that choice, rather than Banks and Companies being responsible for who THEY lend too.
Personally, I would not lend my money to someone I thought could/would not pay it back, but that would be MY choice not "Big Brother"..............but thats just me...flame suit on........

 

[DVCLiz]

Oh never mind, I am tired of this. you all can think what you want, free country and all. I think it is a sad statement that so many of you feel that a SAHP isn't entitled to any of the perks that the working partner has, and yep to me this is a slap in the face, just based in the idea. Glad my DH has more respect than that. To me it is equivalent of you don't work, you aren't worthy. I wonder where it will stop.

You are making this into an emotional argument, but it is a simple financial argument. It has nothing to do with how much a SAHM should be respected. The bottom line is, you decided to depend on someone else to provide your living for you. It doesn't matter to the bank that you and your husband made that decision jointly and based on what you thought would be in the best interest of your children. Those are important factors emotionally but they are not important to the financial institution that is considering you as a loan prospect.

 

[Lisa loves Pooh]

I am a bit insulted by your post, I certainly was NOT looking to "cause dissent" by asking a simple question. Where do you get that I think that a "piece of plastic is necessary for a SAHP or their financial life is doomed"?????? I asked a simple question. I was curious about other ways to establish credit without a credit card, plain and simple. I have not even involved myself in the debate about SAHP not being able to get credit. I suggest you read my posts in the future and not make them into something they clearly are not!!!! People like you make the Dis, an "interesting" place for sure!!!!

I'm not trying to be mean, so no need to toss an insult back.

It is an ongoing budget board debate on how credit cards are necessary in life.

Mrs. Pete lives debt free. I do not. I know how it can be done, but we made a choice not to be that way.

However--I had to build my credit in a different way and shared that. I read your response to indicate that that was not a complete enough answer. I was simply sharing an antidote. I read sarcasm in your repeated request to me and I reacted. I'm sorry.

 

[DVCLiz]

Ha Ha. YOu know, I should learn also. Everyday I say I won't post here. Most people I know think I am crazy, they don't get people here either, and as so many friends have said to me, why in the world do you care what a bunch of strangers think, and I have also expressed some of the opinions on these boards and they look at me like I am crazy for even coming here. I think they are right.

See you guys later. Have a good life.

Are you YAGEing?

 

[Lisa loves Pooh]

Has it gotten hot in here?

Several have said that people with no jobs/income should not get credit. I understand your point. I am one of those that believes that your debt is your own to pay (and am not overly sympathetic to those with the mortgages that they suddenly could not pay; because they should not have gotten them in the first place!)

However, to me, the law is another reflection of the government regulating what they think is best for people. If we want the Banks and credit card companies to be more responsible for who they lend too, go after them.
The law irks me, I really do feel it is a jab at the hardworking moms/dads, ect that choose to raise their families and not work outside the home.
Honestly, it really seems like its another way to penalize those that make that choice, rather than Banks and Companies being responsible for who THEY lend too.
Personally, I would not lend my money to someone I thought could/would not pay it back, but that would be MY choice not "Big Brother"..............but thats just me...flame suit on........

Much of the financial industry is regulated though.

Are you suggesting it should not be? At all?

Because at one time or another, the way banking and lending occur today, the Federal Govt took another step, and then another, and then another.

 

[mhsjax]

Are you YAGEing?

WEll at least for now I am.

 

[Lisa loves Pooh]

WEll at least for now I am.

Awww--don't leave.

 

[fortwildernessishome]

I'm not trying to be mean, so no need to toss an insult back.

It is an ongoing budget board debate on how credit cards are necessary in life.

Mrs. Pete lives debt free. I do not. I know how it can be done, but we made a choice not to be that way.

However--I had to build my credit in a different way and shared that. I read your response to indicate that that was not a complete enough answer. I was simply sharing an antidote. I read sarcasm in your repeated request to me and I reacted. I'm sorry.

I understand that your sorry and I accept your apology. It wasnt that your answer wasnt "complete enough" for me. It just didnt answer my question. I simply was curious how you could build credit without a credit card and you gave me an example that involved building credit with a credit card. You mention that it is an ongoing debate on the budget board about credit cards being necessary. That may be true, but I clearly was not in that debate, I asked a simple question. Its been answered and I am done with this thread as I have no interest in the debate. I just think its a good idea to actually read what somone has written instead of assuming that they have an "unspoken agenda" because as everyone can see, I did not!

 

[edk35]

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.

checking accts.
saving's accts.
secured credit cards
employment history (before you became a SAHP)
residence history
gas cc
dept. store cc cards
student loans
automobile loans before you were married or became a SAHP

Also, our dd has a college checking acct. through a local bank that is also on her campus. When she applied she was approved for a 300 dollar credit line. That is her first attempt at credit. Most people go into marriage with some credit history.

 

[JoiseyMom]

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.

As a SAHM, my income is my DH. Whatever he makes is mine, or ours. His paycheck gets deposited and I pay the bills. All of our credit cards (paid off in full every month btw) except for 1 are in my name first, and he is the authorized user. On 1 i am the AU. And he does have one card he had before we were married, that he like never uses.

Now, if this wasn't the case, why shouldn't I be allowed to have a credit card in my name?? I work damn hard as a SAHM. My DH and I agreed this is how we are going to live for now, why wouldn't his income be mine and be able to be used?

I went running errands today...Target, JCP, Lane Bryant, Claires (yes DD14 was with me sigh...), Xmas Tree Shops, and Wegmans. I didn't ask my DH for permission for what I bought. I don't need to, since hsi money is our money.

Now, if I wanted to buy a car, or something major, I would run it by him, as he does with me. FYI, he called me years ago before he bought his IPOD. It was a major expense and he wanted to discuss it with me.

Now, I am sure lots of couples don't do it this way. I am not one of those that runs up thousands of dolllars in debt that my DH doesn't know about and neither is he. But those couples that do that, have bigger issues that this law doesn't touch. How about the CC companies seeing if the SAHP has other credit cards and hugh debt, and let them decide based on that.

 

[aprilgail2]

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.