SAHMs & SAHDs can't get credit cards now?

[Parrothead]

Most people are not able to pay cash for their house.

Should you ever be in the position to need a mortgage, your credit rating will matter.

Not even for just a mortgage. One's credit score is looked at for many things. From deposits for utilities to insurance premiums. If one had to go out and get a job for whatever reason, many employers look at credit score during the hiring process. Pretty much any business transaction other than retail sales gets a peek at one's scores.

[Parrothead]

:confused: Chucki, where are we misunderstanding each other here?

 

I am explaining why some advocate for no cc's. Yes I used my personal experience because most likely my story is very similar to 100's of other people. I can understand what you are saying about other people having a fear of credit cards and not understanding credit in general.

:grouphug: Because I was not referring to anyone specific on the boards or their stories when I made my comment about under education of credit/ fear of credit. Then you personalized it with your experience and it could look to some that I was saying you personally had one of the problems I mentioned.

 

I just don't want a lot of ugly PMs for saying something I didn't .

[bcnlvr]

Do you have a link for that? I was just reading that cc affect 30% of your score, maybe more.

 

http://www.creditcards.com/credit-card-news/help/5-parts-components-fico-credit-score-6000.php

[Parrothead]

I am trying to figure out where not having good credit or rather excellent credit scores (because of our lack of credit cards) will be bad for us? From what I understand, it takes about 7 years for previous bad credit mistakes (non payment, etc) to be cleared from your credit history. Once that hapens... what do I need to worry about it for?

 

We buy everything with cash. If we can't pay for it with cash we don;t buy it.

Sort of. Strictly speaking, yes. But there are things anyone can do for themselves to clear their credit record and begin rebuilding their credit. If you want all that info PM me.

 

Oh, and yes. For retail sales one does not need credit if one has cash. But for most other business arrangements one's credit score gets a peek. It is always a good idea to do what one can to rebuild after taking a hit on the score.

[5kidsforME]

:grouphug: Because I was not referring to anyone specific on the boards or their stories when I made my comment about under education of credit/ fear of credit. Then you personalized it with your experience and it could look to some that I was saying you personally had one of the problems I mentioned.

 

I just don't want a lot of ugly PMs for saying something I didn't .

 

 

NO ONE SEND PARROTHEAD nasty pm's!!!:lol:

 

As I am sitting hear thinking of all this I do have to say PERSONALLY (:tongue_smilie:) say that while I do not have a fear of credit, I do have a fear of myself with a credit card!! Gives me hives just thinking of the damage I could do. :D

 

AGAIN DO NOT send Parrothead any nasty pm's. It has nothing to do with what she said it's all about meeeeeeee.

 

It's all about me, it's all about I, it's all about number 1 oh my me my, what I think what I want what I seeeeeeeeee.......

[Parrothead]

NO ONE SEND PARROTHEAD nasty pm's!!!:lol:

 

As I am sitting hear thinking of all this I do have to say PERSONALLY (:tongue_smilie:) say that while I do not have a fear of credit, I do have a fear of myself with a credit card!! Gives me hives just thinking of the damage I could do. :D

 

AGAIN DO NOT send Parrothead any nasty pm's. It has nothing to do with what she said it's all about meeeeeeee.

 

It's all about me, it's all about I, it's all about number 1 oh my me my, what I think what I want what I seeeeeeeeee.......

You, you, you! That is all I ever hear! What about me? When is going to be my turn?

 

:lol::lol::lol::lol:

[Murphy101]

Great points!

 

As I've said, I don't care if I have a credit card in my name. DH has no problem getting a card with my name on it and handing it over. It's just inaccurate to claim that I don't have any money or no access to money. I have access to as much money as he does because he gives me access to it. Why can I not claim as such?

 

Any access to your dh's funds is based purely on his good will. Unless you go to court, you have zero right to access any of it, much less count on all of it.

 

From a business perspective, at best, counting on your dh's continued good will to pay your debts without his signature is no different than counting on gift money.

 

Do you have to get his signature to use his money to go buy groceries? What is the difference? Why would you be allowed to use his money for every other expense you incur except for a credit card in your name?

 

Yes, actually you do have to have his signature to buy groceries with his money. Either he had to be willing to have you on his bank account or he had to be willing to give you access in some other manner at some point.

 

If household income can be claimed just bc someone in the home works for that family - I should be able to claim any income paid to my kids living at home and Grandparents that move in to be cared for. But I can't. Because it is not my money. I do have to have their permission to access their funds. I don't have a right to it just bc I work hard to better their lives for free and we live together. If I want my own money to spend and to not be dependent on their good will or approval - I have to go earn my own paycheck.

 

Thankfully, no one in my home feels a need to not have it be communal.

 

But I certainly am aware that it is good will understanding, not a right.

[bcnlvr]

That's great! Don't read this as snark, but I'm curious to know what your excellent score is based on. If you wouldn't mind sharing, maybe those who would like to build up a credit history without cards could learn from your experience.

 

Not snarky at all. Hope it helps anyone who wants to avoid CCs.

 

My mother (the one who was a 45-year-old divorcee with no credit) told me to borrow money when I went to college. Not much, mind you, but enough to establish my credit. I borrowed and paid back small amounts of school loans (4 total). I worked my way through college and having that under me was a great start. Some time after graduation and my loans were paid off, I bought a honda civic with my then short credit history. I paid that off also.

 

I was also a military brat and a member of a well-known credit union (savings and checking accounts). These credit unions will loan you money based on your account history and assets built up there. I did at least 2 personal loans this way (they were considered secured loans). I paid them back as well. I think this is a credit union thing (regular banks don't have these).

 

I went back to school and put the whole thing on school loans (ONLY do this if you KNOW that you will pay them off!!! Just sayin!) I financed my Master degree and now show a huge sum of money that has been paid back. (oof, it took 5 years, too....)

 

Since then (over 15 years), I have purchased many cars and homes as well as taken out personal loans. All show "paid in full" or "paying as agreed" on my report. My debt ratio is low, but I do carry some debt (all secured debt).

 

Although owing $$ on student loans is like owing the mafia in some respects, I highly recommend it for anyone starting out trying to build credit. Go to school. Get a(nother) degree.

 

I would love to talk about options for non-CC-ers to build credit. Maybe that can be another thread. :)

[Barb_]

 

Unless you go to court, you have zero right to access any of it, much less count on all of it. ...

But I certainly am aware that it is good will understanding, not a right.

 

These two statements seem to contradict one another. If the courts uphold my right to household income, then it's a de facto right. You are saying something like, "People who are self-employed are dependent on the good will of the people who hire them. Unless you go to court, you have no right to access the funds of non-paying customers, must less count on it in the first place. Credit companies should not extend payment to people who are self-employed because they have no guaranteed source of income."

Edited December 14, 2011 by Barb F. PA in AZ

[Barb_]

Since then (over 15 years), I have purchased many cars and homes as well as taken out personal loans. All show "paid in full" or "paying as agreed" on my report. My debt ratio is low, but I do carry some debt (all secured debt).

 

 

And your FICO score is in the excellent range...say above 740? If so, that's awesome! It would be good to know that is possible. Fair Issac doesn't make it easy to tease out the true importance of the different variables.

 

 

I went back to school and put the whole thing on school loans (ONLY do this if you KNOW that you will pay them off!!! Just sayin!) I financed my Master degree and now show a huge sum of money that has been paid back. (oof, it took 5 years, too....)...

Although owing $$ on student loans is like owing the mafia in some respects, I highly recommend it for anyone starting out trying to build credit.

 

 

The only thing I would take issue with is the above. Student loans are the most dangerous debt one can carry. If something catastrophic happens...say you are a devastating car accident and cannot work...bankruptcy can charge off almost any type of debt. Not student loans. Even if you are homeless and feeding your kids from gas stations, you will still owe those student loans.

[ezrabean2005]

But I certainly am aware that it is good will understanding, not a right.

 

:iagree:

[bcnlvr]

And your FICO score is in the excellent range...say above 740? If so, that's awesome! It would be good to know that is possible. Fair Issac doesn't make it easy to tease out the true importance of the different variables.

 

 

 

The only thing I would take issue with is the above. Student loans are the most dangerous debt one can carry. If something catastrophic happens...say you are a devastating car accident and cannot work...bankruptcy can charge off almost any type of debt. Not student loans. Even if you are homeless and feeding your kids from gas stations, you will still owe those student loans.

 

Hence my "owing the Mafia" statement. Small school loans I would say ok to someone starting out and trying to built credit. In hindsight, I am not happy with my huge school loans, but I wanted to include the whole story, warts and all. I wanted to not work while getting a Master's. That was why. In my case, it worked out, but you are right. Sometimes it doesn't...

[Parrothead]

 

Any access to your dh's funds is based purely on his good will. Unless you go to court, you have zero right to access any of it, much less count on all of it.

 

From a business perspective, at best, counting on your dh's continued good will to pay your debts without his signature is no different than counting on gift money.

 

 

 

Yes, actually you do have to have his signature to buy groceries with his money. Either he had to be willing to have you on his bank account or he had to be willing to give you access in some other manner at some point.

 

If household income can be claimed just bc someone in the home works for that family - I should be able to claim any income paid to my kids living at home and Grandparents that move in to be cared for. But I can't. Because it is not my money. I do have to have their permission to access their funds. I don't have a right to it just bc I work hard to better their lives for free and we live together. If I want my own money to spend and to not be dependent on their good will or approval - I have to go earn my own paycheck.

 

Thankfully, no one in my home feels a need to not have it be communal.

 

But I certainly am aware that it is good will understanding, not a right.

We will never see eye-to-eye on this so I do not want to argue.

 

But I will point out that I have the checking account as primary. Dh has essentially given me his entire pay check and has access to it once it is in the account only because I allow it.

 

No, of course he does not have to put it in that bank. But in our marriage that is how things work.

[Barb_]

Hence my "owing the Mafia" statement...but I wanted to include the whole story, warts and all. I wanted to not work while getting a Master's. That was why. In my case, it worked out, but you are right. Sometimes it doesn't...

 

Okay. I just wanted to put that out there because most people don't realize that student loans are considerably riskier than consumer credit. I would pick the latter given the choice between student loans and credit cards for building a credit history.

Edited December 14, 2011 by Barb F. PA in AZ
did I really just write "more riskier?"

[Murphy101]

These two statements seem to contradict one another. If the courts uphold my right to household income, then it's a de facto right. You are saying something like, "People who are self-employed are dependent on the good will of the people who hire them. Unless you go to court, you have no right to access the funds of non-paying customers. Credit companies should not extend payment to people who are self-employed because they have no guaranteed source of income."

 

The courts do not uphold your right to household income.

If my dh and I were to divorce, there is no guarantee whatsoever that I would get to keep my kids, much less any portion of my dh's income. It's unlikely I would loose it all given that I am a decent mother/wife, but what portion I get of his income, if any, is completely at the discretion of the judge.

 

And, to some degree, the self employeed are dependent on the good will of those they contract with. When they go to the bank, they must show how they expect to stay in business and what assets they have to support that business. And it is much harder for a self employeed person to get credit. They are carefully viewed based on past finances, current business flow, and prospective possibilities. And yes, if the last few contracts or a major contract didn't pay out - they will loose their credit. I've seen it happen.

 

If anything, a spouse has LESS right than the self employeed. Unless there was a prenup, at least the self employed started with a contract saying they had a right to certain monies if they met their end of the obligations. A spouse doesn't even have that.

Edited December 14, 2011 by Martha
Wow. I can't believe I called myself a decent width. Freudian autocorrect?!

[Parrothead]

And your FICO score is in the excellent range...say above 740? If so, that's awesome! It would be good to know that is possible. Fair Issac doesn't make it easy to tease out the true importance of the different variables.

Just to be a general nuisance about it...

 

While 740 is an excellent score, without (preferably) two major credit cards one will not make it into the 800s.

 

So it does depend on what one's goal is (and granted, it is not the same for everyone)

 

 

If anyone wants to know, my goal is a very diverse portfolio with many credit options along with being in the 800 club. Also to me it is a great game.

[Murphy101]

We will never see eye-to-eye on this so I do not want to argue.

 

But I will point out that I have the checking account as primary. Dh has essentially given me his entire pay check and has access to it once it is in the account only because I allow it.

 

No, of course he does not have to put it in that bank. But in our marriage that is how things work.

 

:001_huh: There is nothing to see eye to eye about? It is what it is. Legally, you have no right to your dh's income. Legally, any access he gives you is at his discretion and can be removed any time he wants to do it, whether you consent to it or not, unless you find a judge to force him to give it.

 

I'm the primary on our bank accounts as well.;)

 

But yes, any time my dh wants he can decide to heck with me and open his own account without my consent and leave the account I have access to without a dime.

 

Thankfully he feels no desire to do that.

Or maybe he just doesn't want to face my wrath if he did.:tongue_smilie:

 

And I freely admit, I am insecure financially and there are times that insecurity makes me jittery. And that is even while being married to a mostly great guy I believe loves me. But this is the price I pay for not earning a paycheck. *shrug*

[Barb_]

The courts do not uphold your right to household income.

If my dh and I were to divorce, there is no guarantee whatsoever that I would get to keep my kids, much less any portion of my dh's income. It's unlikely I would loose it all given that I am a decent mother/wide, but what portion I get of his income, if any, is completely at the discretion of the judge.

 

But the mere fact that the courts will award a portion of household income to the non-employed spouse legally supports the notion of household income. It is understood that a legal spouse has access to household income. In a divorce, income and debt is split between the spouses, not necessarily down the middle, but split in such a way that the judge deems fair regardless of whether the state is community property or not. Unless the debt is for the personal and individual expenses of wage earner (clothes, restaurant charges, etc), the non-working spouse will walk away with debt she did not charge up and can not pay for.

 

And, to some degree, the self employeed are dependent on the good will of those they contract with. When they go to the bank, they must show how they expect to stay in business and what assets they have to support that business. And it is much harder for a self employeed person to get credit.

 

My point is, a self-employeed person finds him or herself in the same position as a non-employeed spouse. But the self employed are not federally prohibited from obtaining credit as non-working spouses now are.

 

If anything, a spouse has LESS right than the self employeed. Unless there was a prenup, at least the self employed started with a contract saying they had a right to certain monies if they met their end of the obligations. A spouse doesn't even have that.

 

Wrong. A prenuptial agreement is put in place primarily to protect the spouse with income or many assets. Lack of a prenuptual agreement usually works in the non-employed spouse's favor. At any rate, this just confuses the issue because a prenup is only valid in the case of divorce. Otherwise, the legal precedent is set to consider household income as belonging to both parties. That is why we file our taxes jointly.

Edited December 14, 2011 by Barb F. PA in AZ

[Parrothead]

:001_huh: There is nothing to see eye to eye about? It is what it is. Legally, you have no right to your dh's income. Legally, any access he gives you is at his discretion and can be removed any time he wants to do it, whether you consent to it or not, unless you find a judge to force him to give it.

 

I'm the primary on our bank accounts as well.;)

 

But yes, any time my dh wants he can decide to heck with me and open his own account without my consent and leave the account I have access to without a dime.

 

Thankfully he feels no desire to do that.

Or maybe he just doesn't want to face my wrath if he did.:tongue_smilie:

 

And I freely admit, I am insecure financially and there are times that insecurity makes me jittery. And that is even while being married to a mostly great guy I believe loves me. But this is the price I pay for not earning a paycheck. *shrug*

Yes, as a wife, I do have a legal right to it. As opposed to being a girlfriend.

 

If spouses did not have a legal right to the other spouses assets some spouses would hide said assets in the Cayman's or Switzerland.

[Barb_]

Just to be a general nuisance about it...

 

While 740 is an excellent score, without (preferably) two major credit cards one will not make it into the 800s.

 

So it does depend on what one's goal is (and granted, it is not the same for everyone)

 

 

If anyone wants to know, my goal is a very diverse portfolio with many credit options along with being in the 800 club. Also to me it is a great game.

 

FWIW, :iagree:

 

We can't seem to make it out of the 790's no matter what we do. :glare:

[Parrothead]

FWIW, :iagree:

 

We can't seem to make it out of the 790's no matter what we do. :glare:

Good on the mortgage?

At least 2 major credit cards?

Any charge cards (think AMEX)?

Paid auto loans?

Paid personal loans?

Average age of accounts?

No low limit cards?

Utilization less than 30% (Some say as low as 10%)

High limits on cards?

 

ETA: By chance you don't have your mortgage and your banking and your CCs all at the same institution? Diversification helps lots too.

Edited December 14, 2011 by Parrothead

[Gretchen in NJ]

Yep. AFter all, we must be protected from ourselves. We, collective, are far too stupid to be able to manage our own affairs. As far as college kids go, they need to be able to get a credit card in today's world also. Protection can come in the form of a low charge limit.

Who is going to protect us from the protectors who are trying to protect us?

 

Who is going to protect the protectors?:001_huh:

[Parrothead]

Who is going to protect us from the protectors who are trying to protect us?

 

Who is going to protect the protectors?:001_huh:

The Marines?

 

:D

[Barb_]

Good on the mortgage? Yup

At least 2 major credit cards? Yup.

Any charge cards (think AMEX)? Yup.

Paid auto loans? Yup. Although both cars are currently paid off.

Paid personal loans? Hmm. What type?

Average age of accounts? Ha, like 12 years.

No low limit cards? Nope.

Utilization less than 30% (Some say as low as 10%) Between 10-15?

High limits on cards? Yup

 

ETA: We are also diversified.

 

Yeah, I don't get it. We've been able to drag our scores up from the high 600's to the 790s but it seems to hover there between the 780s and 790s. I think that once you get to that point, tiny things cause bigger jumps and drops. At one time, we were dinged because our limit on our highest card was too high. Then we dropped it a little and the next go-round they said our ratio was too high even though our debt amount hadn't changed. Only the limit on the one card. It's a delicate balance.

Edited December 14, 2011 by Barb F. PA in AZ

[Barb_]

Hey the high 700s are nothing to scoff at. That's what we have (even me oddly enough), and we have never had a problem getting approved for anything.

 

I just want to beat the man. :tongue_smilie:

[Parrothead]

Hmm. What type?

 

Some kind of unsecured personal loan.

 

Of course if you take out an unsecured personal loan your score will drop a bit. As you pay on the loan it will go back up. And again take a dip when it is paid off. But with in a month or two after pay off it should be higher than when you stared.

 

Unless you are playing the credit game for the sake of playing I would go out loan shopping.

 

Oh, speaking of loan shopping what about inquiries? It costs a few points every time someone pulls a hard inq.

[Parrothead]

Hey the high 700s are nothing to scoff at. That's what we have (even me oddly enough), and we have never had a problem getting approved for anything.

Try the Palladium card. Or the AMEX Black.

[Barb_]

Some kind of unsecured personal loan.

 

Of course if you take out an unsecured personal loan your score will drop a bit. As you pay on the loan it will go back up. And again take a dip when it is paid off. But with in a month or two after pay off it should be higher than when you stared.

 

Unless you are playing the credit game for the sake of playing I would go out loan shopping.

 

Oh, speaking of loan shopping what about inquiries? It costs a few points every time someone pulls a hard inq.

 

We're careful about inquiries. Don't think I have the stomach for an unsecured loan.

[Tigger]

Yeah, I don't get it. We've been able to drag our scores up from the high 600's to the 790s but it seems to hover there between the 780s and 790s. I think that once you get to that point, tiny things cause bigger jumps and drops. At one time, we were dinged because our limit on our highest card was too high. Then we dropped it a little and the next go-round they said our ratio was too high even though our debt amount hadn't changed. Only the limit on the one card. It's a delicate balance.

 

One thing that might be effecting your score is too much credit available, even if you only utilize 10-30%.....basically, if you have credit to the point where if you maxed it all out and could potentially be in way over your head for minimum payments at that point, that factors into your score too.

[Barb_]

One thing that might be effecting your score is too much credit available, even if you only utilize 10-30%.....basically, if you have credit to the point where if you maxed it all out and could potentially be in way over your head for minimum payments at that point, that factors into your score too.

 

Good point. That could be. We charge the whole budget and pay it off each month so our limits have to be high to balance out that 10-30%. But it's worth it to me for the Hilton Honors points. If we play our cards right, we can stay in hotels for free 2-3 weeks out of every year.

[Parrothead]

Good point. That could be. We charge the whole budget and pay it off each month so our limits have to be high to balance out that 10-30%. But it's worth it to me for the Hilton Honors points. If we play our cards right, we can stay in hotels for free 2-3 weeks out of every year.

Oh, you know, depending on when your CC companies report to the CRAs you may show a really high balance. You are doing the "right" thing by paying them off, but you may be paying them off mid cycle and they never get reported as a $0 balance.

[Tigger]

Oh, you know, depending on when your CC companies report to the CRAs you may show a really high balance. You are doing the "right" thing by paying them off, but you may be paying them off mid cycle and they never get reported as a $0 balance.

 

That's what was happening to us! LOL

 

For the life of me, I could not understand how it was our score wouldn't budge and when we bought a car in December last year, the guy at the dealership who pulled out credit said our score was what it was because our credit cards showed close to max. Every.single.month. For last three years.

 

I said no, we pay off each month. Could prove it too! He then went on to explain date of reporting versus date of paying it off and sure enough, every month when the cc reported our payment on time, it was mid-month - after we paid the previous month - so the BALANCE reported was always higher than reality and did not reflect we paid it off each month!

 

I remedied that by changing our due dates! And thankfully the dealership did an internal over-ride to get us the better rate on the car loan!

[In2why]

Well, unless one happened to plan ahead for emergencies and had actual cash on hand.......but that seems to be rather unpopular on this board.

 

 

I don't think that is the case at all. People are for the most part ignoring you because you aren't adding anything to *this thread.

We have no debt. We were "Dave Ramsey" before anyone heard of Dave Ramsey, and while our house is not paid for we have the reserves to pay it off tomorrow. We rarely use credit because we don't believe in paying interest, but we like the convenience of having credit cards, and the ability to buy everything with a card and pay it off before interest is charged. I also like 5% off on all my purchases. We use the points for various things, right now we are saving them for a cruise. We have also saved over 25% of our income since our marriage and my husband only works now because he wants to. You are not unique, in making the choice not to be in debt, or even that special, really.

But to tell others that they shouldn't value credit cards because you don't is absurd, and silly. You didn't just state your opinion, you seem to want people for feeling bad if they don't make the same choices you do. Different people choose different financial plans. For example some here have reported high insurance on their spouses as part of their plan. For me that no longer makes sense. We had over a million dollars in term insurance, when we were building our lives, but now we self insure. For us it works, but what works isn't what the thread is about, it is about people who might want credit no longer being able to get it.

Feel free to post whatever you like on a public message board, but please don't act like butter wouldn't melt in your mouth when you are called on it.

[In2why]

I've mentioned this before, but government doesn't want anyone to stay at home. They want you in the workforce so you can pay taxes. They don't care about what is best for your family. They figure you can earn a wage and pay taxes on it then come home to your family and have that 'quality time' that is promoted in all of those magazine articles. You can hire a housekeeper to do those pesky chores. Then, not only do they get taxes on your wages they just know you will be spending more of those earnings on things like child care, housekeeping, and all of those consumer goods that are available out there looking better and better with all of that cash burning a hole in your pocket, thus keeping all that money in motion. What is not to love?

Of course, the SAH isn't home to watch the kids so they go to daycare and public school. The SAH can't help elderly parents so they go to personal care homes or nursing homes. Mom and Dad are both tired and stressed, so they are more likely to split up. The family is destroyed and becomes a collection of individuals who are then more and more under the control of the state. The state becomes the family. Why is this desirable? Pick up a history book. Families support each other and form networks and tend to think independently. Individuals are more docile and easier to isolate and control.

The whole credit thing is a self-perpetuating industry fraught with the kind of error that would get any other business shut down, and sanctioned by the government because it promotes their purposes. So now they want to use the credit system to frighten SAHs back into the workforce. I'm not surprised.

 

 

I call BS on the bold above. The government makes allowances for stay at home spouses in tax breaks by giving higher thresholds for couples before taxation. As a SAHM you are also entitled to 50% of your spouses social security benefit with no reduction to his draw. They actually provide incentives to marriage and children in many ways.

[In2why]

Great points!

 

As I've said, I don't care if I have a credit card in my name. DH has no problem getting a card with my name on it and handing it over. It's just inaccurate to claim that I don't have any money or no access to money. I have access to as much money as he does because he gives me access to it. Why can I not claim as such?

 

Because legally if he left you tomorrow you don't have any income until you get court ordered alimony and child support, which can be considered as income on a credit card application. The credit card company wants to know who is legally required to pay the balance owed, not who controls the finances.

[In2why]

Do you have to get his signature to use his money to go buy groceries? What is the difference? Why would you be allowed to use his money for every other expense you incur except for a credit card in your name?

 

 

The difference is that I write checks, or use debit cards drawn off of joint account. Basically the same thing as having joint credit cards, I believe.

 

I do have my own accounts, but I also have my own income. Not as a wage earner, but from investments.

[In2why]

Absolutely. I pay all the bills with his money. Nobody has a problem with it so long as they are getting their money. It's not personal. They really don't give a hoot where it is coming from.

 

As I said I got a card last month. I told my husband about it. He had no problem with it. Why would he? There was a financing deal I wanted to take advantage of and he wasn't around so I went ahead and put my name on it.

 

For every loan, credit card, major purchase we have ever made I did all of the paperwork short of signing his name for him. Nobody knew that nor cared (he knew, but I could have very well used his info and not told him).

 

Issues can go both ways. If my husband goes out and spends way more money than we could ever pay back, that will affect both of us. Nobody will care that it was his stupidity verses mine. It will hurt us both. That's an issue totally outside of whether or not I have access to pay for purchases I make with a card in my name.

 

 

I can even sign his name better than he can. :D

[In2why]

I am trying to figure out where not having good credit or rather excellent credit scores (because of our lack of credit cards) will be bad for us? From what I understand, it takes about 7 years for previous bad credit mistakes (non payment, etc) to be cleared from your credit history. Once that hapens... what do I need to worry about it for?

 

We buy everything with cash. If we can't pay for it with cash we don;t buy it.

 

 

Bankruptcy never really goes away, and neither do legal judgements because even though they may fall off your credit report, you will be asked if you ever had any, and if you lie it is fraud.

 

As for how bad it could be for you......do you buy life, auto, or home insurance? Even if you pay cash your credit scores determine how much you will pay. Will your kids go to college? If so your income and credit matter if they need loans, because they can't use their income alone until I believe they are 23 or married. Will either of you need to apply for a job at any point? If so your prospective employer will likely run your credit report.

[5kidsforME]

Bankruptcy never really goes away, and neither do legal judgements because even though they may fall off your credit report, you will be asked if you ever had any, and if you lie it is fraud.

 

We never declared bankruptcy. We have never had a legal judgement. And I wouldn't lie even if we did, :001_smile:.

 

As for how bad it could be for you......do you buy life, auto, or home insurance? Even if you pay cash your credit scores determine how much you will pay. Will your kids go to college? If so your income and credit matter if they need loans, because they can't use their income alone until I believe they are 23 or married. Will either of you need to apply for a job at any point? If so your prospective employer will likely run your credit report.

 

We already have life insurance, auto and home and our credit score did not determine how much it costs.

 

My dh won't need to apply for a job and we hope I won't have to.

 

As far as the college loans, that is years away and hopefully by then we will get our credit scores up.

[Joker]

How much do credit scores really matter? We do have a bankruptcy (due to medical bills) on our record and it hasn't stopped dh from gaining awesome employment. We have great insurance rates, we were able to reestablish credit (with a CC) within two months, and we took out a home loan with a 5% interest rate within 18 months. We've also purchased and paid off two car loans with good rates since. It didn't hinder us at all.

 

That said, I don't think the federal government should set regulations for SAHMs.

[Tarreymere]

I can even sign his name better than he can. :D

 

 

:lol: My MOM had me practice my Dad's signature until I could forge his name perfectly.........this was back in the day when we got his weekly paycheck in the mail on Friday. Poor Dad, it was gone by the time he got home.

[Tarreymere]

Bankruptcy never really goes away, and neither do legal judgements because even though they may fall off your credit report, you will be asked if you ever had any, and if you lie it is fraud.

 

As for how bad it could be for you......do you buy life, auto, or home insurance? Even if you pay cash your credit scores determine how much you will pay. Will your kids go to college? If so your income and credit matter if they need loans, because they can't use their income alone until I believe they are 23 or married. Will either of you need to apply for a job at any point? If so your prospective employer will likely run your credit report.

 

Serving in the military also means you can use your own income to apply for student loans. I think the law that states that the parent's income has to be taken into account for student loans is ridiculous. I couldn't go to college after graduating high school because I couldn't get student loans without my father's income information and he refused to give it to me. So I had to either wait until I was much older or served in the military to get funding for college. I think that is a pretty stupid system. Not all parents actually like their kids and want to help them get started.

[Tarreymere]

I don't think that is the case at all. People are for the most part ignoring you because you aren't adding anything to *this thread.

We have no debt. We were "Dave Ramsey" before anyone heard of Dave Ramsey, and while our house is not paid for we have the reserves to pay it off tomorrow. We rarely use credit because we don't believe in paying interest, but we like the convenience of having credit cards, and the ability to buy everything with a card and pay it off before interest is charged. I also like 5% off on all my purchases. We use the points for various things, right now we are saving them for a cruise. We have also saved over 25% of our income since our marriage and my husband only works now because he wants to. You are not unique, in making the choice not to be in debt, or even that special, really.

But to tell others that they shouldn't value credit cards because you don't is absurd, and silly. You didn't just state your opinion, you seem to want people for feeling bad if they don't make the same choices you do. Different people choose different financial plans. For example some here have reported high insurance on their spouses as part of their plan. For me that no longer makes sense. We had over a million dollars in term insurance, when we were building our lives, but now we self insure. For us it works, but what works isn't what the thread is about, it is about people who might want credit no longer being able to get it.

Feel free to post whatever you like on a public message board, but please don't act like butter wouldn't melt in your mouth when you are called on it.

 

I never said I felt special, I have simply continued to repeat that having and using credit cards is a choice, not a necessity. In the beginining of the thread several people posted about how the new credit laws were affecting SAHMs since now they would not be able to get credit cards in their own names and that this was a great injustice because credit cards were a necessity.

 

My posts, over the entire thread, have been directed primarily to pointing out that credit cards are a choice, not a necessity. I don't feel that SAHMs are being done an injustice. Clearly being a SAHM involves a set of choices that have both pros and cons. Now the choice to be a SAHM means that one can't apply for credit in one's own name. My position is that if a person wants to be a SAHM that person should be a SAHM, because credit cards are not a necessity and it is my opinion that it is not worth changing from a SAHM lifestyle just to get a credit card since credit cards are not a necessity but SAHMs are usually very necessary to their families.

 

You even say that in your post, that you use them because you like the convenience. I don't care if people have them or not, what I take exception to is the insistence that credit cards are a 'necessity'. I have continued to repeat that credit card are not a necessity, they are a choice. I have been told that to live a normal life credit cards are a necessity. I have replied by stating that I live a normal life (and giving examples) stating again that I have not found credit cards necessary.

 

Although I am quite weary of stating it, I will say again that having and using credit cards is a choice. I am not passing judgement on which choice anyone makes and quite frankly I do not care what other people do with their choices. You state that I "seem to want people to feel bad" for using credit cards. That is your perception, not what I wrote or implied. If you feel the least bit guilty about your choices that is not my intent and I would rather you not take it out on me.

I have not been 'called' on it, which implies replies and contradicts your statement that people are ignoring me (which they are not because several others have replied that they also do not find credit cards necessary in their own lives). Your logic is flawed. Please review your statements.

Edited December 15, 2011 by Rainefox

[Tarreymere]

I call BS on the bold above. The government makes allowances for stay at home spouses in tax breaks by giving higher thresholds for couples before taxation. As a SAHM you are also entitled to 50% of your spouses social security benefit with no reduction to his draw. They actually provide incentives to marriage and children in many ways.

 

Your comments are true, but I am rather leery of the government's past experiments with social engineering a la John Taylor Gatto's expose on purported social engineering purposes of compulsory schooling. I can see where a materialistically oriented society in which every adult is employed would increase the tax base and thereby increase the amount of money the government has to spend. I sure wouldn't put it past them not to have considered this and to be subtly trying to influence the strengthening of the cultural shift that has both parents working outside the home.

[In2why]

Serving in the military also means you can use your own income to apply for student loans. I think the law that states that the parent's income has to be taken into account for student loans is ridiculous. I couldn't go to college after graduating high school because I couldn't get student loans without my father's income information and he refused to give it to me. So I had to either wait until I was much older or served in the military to get funding for college. I think that is a pretty stupid system. Not all parents actually like their kids and want to help them get started.

 

 

I agree. A friend of mine was accepted at Duke and she couldn't go because her father refused to fill out financial forms, much less help pay for it. She was willing to pay for it, but she couldn't even apply for scholarship or loans withouth the family finance info. Needless to say it is 20 years later and she hasn't spoken to him. She even moved across the country and he doesn't even know her married name or that she has three kids.

[QueenCat]

:lol: My MOM had me practice my Dad's signature until I could forge his name perfectly.........this was back in the day when we got his weekly paycheck in the mail on Friday. Poor Dad, it was gone by the time he got home.

 

That reminds me of the time my dad went to the bank for a change, and they wouldn't cash his check.... they were used to my mom's forged signature.