SAHMs & SAHDs can't get credit cards now?

[Mary in VA]

It makes perfect sense to me that a person with no income can not obtain a credit card. If the person has a spouse with an income, he/she can have a card in the spouses name because it's the spouse who has to pay it. I don't get what the complaining is about.

If anything, it is far too easy to get credit in this country.

 

:iagree:

[bcnlvr]

We don't use credit cards. At all. I don't see what all the fuss is. Do you really NEED a credit card??

[4everHis]

:iagree: DH's job has nothing to do with me. He would make exactly the same amount of money were we to not be married. His income is based on his incredible work ethic and expertise. Now his home life wouldn't be near as awesome without me :D

 

:iagree::D

[Mrs Mungo]

We don't use credit cards. At all. I don't see what all the fuss is. Do you really NEED a credit card??

 

If you had no credit and your dh dropped dead, then you wouldn't be able to get a mortgage or buy a car. You might not even be able to open your own bank account without big fees.

[Plucky]

We don't use credit cards. At all. I don't see what all the fuss is. Do you really NEED a credit card??

 

I like to get money back for spending money at a store, or points towards purchases. I want the rewards. I only spend what I would spend if I had cash and pay it off immediately.

[elegantlion]

No. At least not in Germany. Most people do not have credit cards. Store credit is rarer, except for catalog orders. Traditionally, if you want to buy something, you save until you have saved up the money and then buy. Mortgages are much harder to obtain than in the US.

 

Thanks, I had wondered about this. I have a former SIL who is German. In her case the family owned a few homes. They had been in the family for many generations, getting passed down through the years.

[bcnlvr]

If you had no credit and your dh dropped dead, then you wouldn't be able to get a mortgage or buy a car. You might not even be able to open your own bank account without big fees.

 

Not true.

 

Buying a car and a house have already been done many times in our family. I have excellent credit. So does dh. I do not have any credit cards. Same with dh.

[NicAnn]

If you had no credit and your dh dropped dead, then you wouldn't be able to get a mortgage or buy a car. You might not even be able to open your own bank account without big fees.

 

We've never bought a car with credit, nor will we. And we have no plans to have a mortgage. If a house can't be bought straight out, then we won't buy one. My grandparents are in their 70s and didn't have a credit card until retirement when my aunt signed them up for one. It can be done.

[Parrothead]

Well, my dh tells people all of the time that part of his success has been due to *my* work. But, the military is an unusual animal in that regard. We are a team.

This whole thread has me thinking a lot.

 

Obviously there is a different mindset going on here. You and I as the two biggest supporters for SAHM/Ds getting/having/keeping credit look at life differently than a lot of others here. Our dh's (and others who share their jobs) have a higher possibility of not coming home tonight than say your average middle management person.

 

As such we have thought way ahead to the financial protection of ourselves and our children if the worst were to happen. Part of that protection is having credit in our own names.

 

Here is a scenario for those naysayers out there. Say my dh doesn't come home tonight (he is in LE so that is always a possibility). Should I be allowed to call the oil company tomorrow and request our almost empty tank be filled so we have heat? Of course that would require I have a credit account with the oil company. Who I would have to pay when the insurance money comes in. Or should dd and I slowly freeze to death?

 

Yes, that is a bit extreme but that is how things work in this country.

 

Then what happens over the next few years. I have oodles and oodles of insurance on the man just in case. That will all come in pretty much at once. Then over the next few years I'll live on the interest. But I won't go to work. Should I be allowed credit as a SAHM with no income then?

[Mrs Mungo]

Not true.

 

Buying a car and a house have already been done many times in our family. I have excellent credit. So does dh. I do not have any credit cards. Same with dh.

 

We've never bought a car with credit, nor will we. And we have no plans to have a mortgage. If a house can't be bought straight out, then we won't buy one. My grandparents are in their 70s and didn't have a credit card until retirement when my aunt signed them up for one. It can be done.

 

Just because they can be done, doesn't make it feasible for everyone. Would you be able to buy a house with cash if you moved every two to three years? How about a house in Hawaii? Not everyone's job and lifestyle allows for that.

[Parrothead]

We don't use credit cards. At all. I don't see what all the fuss is. Do you really NEED a credit card??

No, but the time may come you need credit. Not necessarily a credit card, but credit in general. To have that option stripped away for no reason other than one is a stay at home spouse is ridiculous.

[NicAnn]

Just because they can be done, doesn't make it feasible for everyone. Would you be able to buy a house with cash if you moved every two to three years? How about a house in Hawaii? Not everyone's job and lifestyle allows for that.

 

Of course it's not feasible for everyone. We make $1600 a month, so if we want a house it will be years before that's possible. Until then we will rent. There are many options out there and of course not everyone needs or doesn't need credit. But to say you have to have it is very untrue and a large part of the problem.

[Parrothead]

Not true.

 

Buying a car and a house have already been done many times in our family. I have excellent credit. So does dh. I do not have any credit cards. Same with dh.

But now as a stay at home spouse you are not allowed to go buy a car if your car dies with your dh. It does not matter what your credit score is. You've been penalized for being a SAH spouse.

[NicAnn]

But now as a stay at home spouse you are not allowed to go buy a car if your car dies with your dh. It does not matter what your credit score is. You've been penalized for being a SAH spouse.

 

I assume what she is saying (because I am), is that we buy cars now by walking into the dealer or meeting someone on Craigslist with cash in hand and buy the car. No one is taking that right away from us.

[Mrs Mungo]

Of course it's not feasible for everyone. We make $1600 a month, so if we want a house it will be years before that's possible. Until then we will rent. There are many options out there and of course not everyone needs or doesn't need credit. But to say you have to have it is very untrue and a large part of the problem.

 

Do you have to carry a large balance on a credit card? No. But, I think Chucki is right that those of us who live with the idea that our spouse could be killed in the forefront of our minds and financial plans see this differently. Like Chucki, we have oodles of insurance. But, while all of the finances are being worked out, I will need a way to make certain things happen. I know way too much about it. Maintaining credit in my name is necessary *for us*.

 

But now as a stay at home spouse you are not allowed to go buy a car if your car dies with your dh. It does not matter what your credit score is. You've been penalized for being a SAH spouse.

 

Right. Maybe you decide to move closer to your family, but now you have no credit to rent or buy. What now?

[Parrothead]

I assume what she is saying (because I am), is that we buy cars now by walking into the dealer or meeting someone on Craigslist with cash in hand and buy the car. No one is taking that right away from us.

But there are people who do not have cash in hand. Or even if they do have other uses for that cash such as it is a lump sum and they are living on the interest. That interest might not buy a car or house outright but will allow for a monthly payment.

[....]

This whole thread has me thinking a lot.

 

Obviously there is a different mindset going on here. You and I as the two biggest supporters for SAHM/Ds getting/having/keeping credit look at life differently than a lot of others here. Our dh's (and others who share their jobs) have a higher possibility of not coming home tonight than say your average middle management person.

 

As such we have thought way ahead to the financial protection of ourselves and our children if the worst were to happen. Part of that protection is having credit in our own names.

 

Here is a scenario for those naysayers out there. Say my dh doesn't come home tonight (he is in LE so that is always a possibility). Should I be allowed to call the oil company tomorrow and request our almost empty tank be filled so we have heat? Of course that would require I have a credit account with the oil company. Who I would have to pay when the insurance money comes in. Or should dd and I slowly freeze to death?

 

Yes, that is a bit extreme but that is how things work in this country.

 

Then what happens over the next few years. I have oodles and oodles of insurance on the man just in case. That will all come in pretty much at once. Then over the next few years I'll live on the interest. But I won't go to work. Should I be allowed credit as a SAHM with no income then?

 

It doesn't matter what career path they're in. My husband is 38 and has had colon cancer twice. It really could happen to anyone...car accident...heart attack... I mean, not to sound depressing, but everyone needs to be aware of that possibility. (sorry to depress everyone on the forums :tongue_smilie:)

 

We also have huge life insurance policies.

[Parrothead]

Do you have to carry a large balance on a credit card? No. But, I think Chucki is right that those of us who live with the idea that our spouse could be killed in the forefront of our minds and financial plans see this differently. Like Chucki, we have oodles of insurance. But, while all of the finances are being worked out, I will need a way to make certain things happen. I know way too much about it. Maintaining credit in my name is necessary *for us*.

 

 

 

Right. Maybe you decide to move closer to your family, but now you have no credit to rent or buy. What now?

Without credit I could not so much as rent a UHaul truck to move closer to family. Even if I had excellent credit (and I don't because I have a $79 paid medical collection, but that is another thread) I could not rent the truck. I could not pay for the funeral. I could not pay for the church because I'm a SAHM.

 

I really don't think everyone sees just how important it is to have credit in ones name and the ability to use said credit. It is not just about having/getting credit cards.

 

Although it is a catch-22 because FICO bases most of one's FICO score on one's payment history and one's debt amounts. In other words one should have a good history of paying one's credit cards and having a low balance/high credit ceiling.

 

So really in order to have credit with the oil company or to rent a UHaul truck one needs to have built up a good credit rating by using a couple of different major credit cards.

[G5052]

Just because they can be done, doesn't make it feasible for everyone. Would you be able to buy a house with cash if you moved every two to three years? How about a house in Hawaii? Not everyone's job and lifestyle allows for that.

 

Or deal with overwhelming medical expenses. Most doctors and hospitals will negotiate with you and put you on a no or low-interest payment plan, but if and only if you have a good credit history.

 

And some employers run credit checks on folks they're considering hiring, and if you have poor or little credit history, they use that to eliminate you from consideration.

 

Sad to say, your credit history has become one of the measures of who you are in certain situations. Dave Ramsey always downplays this, but he's not in a situation where he needs a good credit score.

[Parrothead]

It doesn't matter what career path they're in. My husband is 38 and has had colon cancer twice. It really could happen to anyone...car accident...heart attack... I mean, not to sound depressing, but everyone needs to be aware of that possibility. (sorry to depress everyone on the forums :tongue_smilie:)

 

We also have huge life insurance policies.

Yes, I understand what you are saying. I'm sorry to hear about your dh's battle with cancer.

 

There are some careers where barring medical issues one is likelier to die at work than at home. This is one of the reasons dh's insurance rates are so high.

[plansrme]

I think something needs to be clarified about what we are talking about here: this is a federal law that says banks may NOT consider household income in their decisions to extend credit. Banks and other creditors have NEVER been required to consider household income, or to support SAHMs in that way, but many, through the years, have found it good business sense to do so.

 

So the federal government has taken this anti-SAHM/SAHD position. Whether you personally feel credit is good or bad, or whether you need credit in your own name or not, is very much not the point. The point is that the federal government (which, coincidentally, will most certainly hold a SAHM/spouse liable for any taxes not paid by a working spouse on a joint return), says that a SAHM has to go to her working spouse and ask him to co-sign for her credit card. How is that not humiliating? And how is it ever a good idea for a SAHM not to have access to her own credit?

 

Men flake out, they die, they become disabled, EVERY SINGLE DAY. If you think that's not going to happen to you, you'd better be right, and you'd better not ever wake up and find yourself with no husband, no job, no income and no freakin' credit.

 

I love Dave Ramsey as much as the next guy, but it is very, very difficult to conduct your affairs in this day and age with no credit.

 

Terri

[Parrothead]

Men flake out, they die, they become disabled, EVERY SINGLE DAY. If you think that's not going to happen to you, you'd better be right, and you'd better not ever wake up and find yourself with no husband, no job, no income and no freakin' credit.

 

Amen!

[....]

I think something needs to be clarified about what we are talking about here: this is a federal law that says banks may NOT consider household income in their decisions to extend credit. Banks and other creditors have NEVER been required to consider household income, or to support SAHMs in that way, but many, through the years, have found it good business sense to do so.

 

So the federal government has taken this anti-SAHM/SAHD position. Whether you personally feel credit is good or bad, or whether you need credit in your own name or not, is very much not the point. The point is that the federal government (which, coincidentally, will most certainly hold a SAHM/spouse liable for any taxes not paid by a working spouse on a joint return), says that a SAHM has to go to her working spouse and ask him to co-sign for her credit card. How is that not humiliating? And how is it ever a good idea for a SAHM not to have access to her own credit?

 

Men flake out, they die, they become disabled, EVERY SINGLE DAY. If you think that's not going to happen to you, you'd better be right, and you'd better not ever wake up and find yourself with no husband, no job, no income and no freakin' credit.

 

I love Dave Ramsey as much as the next guy, but it is very, very difficult to conduct your affairs in this day and age with no credit.

 

Terri

 

Very true. (and I also love dave and don't have a credit card, but still...)

[Tarreymere]

If you had no credit and your dh dropped dead, then you wouldn't be able to get a mortgage or buy a car. You might not even be able to open your own bank account without big fees.

 

In my area you don't need credit to get a basic checking account, and in any event I am already on our joint account. Since we live without credit any way even with poor DH still living it would not change the way we currently save up to purchase used vehicles with cash. Our purchase agreement on our mobile home specifically states that in the event of the death of either of us the surviving spouse can continue the agreement. DH's Social Security Survivor Benefits would be more than enough to meet our modest living expenses and I know that because I have reviewed his benefit statement. I am also an RN, and Lord knows that if I chose to go back to work even part time I would have a slew of offers to choose from.

 

I think the credit companies have brainwashed people into thinking they need credit to survive. Maybe with a certain kind of lifestyle that may be true but it isn't for us and doesn't have to be for everyone else either. It is a choice to live that way.

 

Edited to add: And yes, I have been widowed. My first husband died unexpectedly. We did not have or use credit when he was alive and although I was working at the time I did not feel the need to apply for any credit for any reason after his death. My second husband became addicted to Oxycontin following a serious workplace injury in which his leg was crushed, and the drug lowered his inhibitions to the point that he made sexual advances to my daughter. Clearly he had to go, and the resulting divorce also did not cause me to seek credit or change my mind regarding it. My current DH is my third and I doubt even if he became disabled or died that I would feel I needed credit. Worst case scenario is that I would have to get a job. In my field and in my area, a person with an RN license could walk into an interview barefoot and picking her nose and still get hired. I still get mail from prospective employers and email solicitations from travel nurse agencies.

 

We haven't found that to be difficult although it has involved deferring purchases until we could pay cash and seeking out alternative ways to afford purchasing our very modest home. We are also not opposed to renting and I don't think we would encounter difficulty with a rental credit check in this area since none of our adult kids had any difficulty and none of them had credit when they moved out and rented a place (without any co-signers and in at least one case with only the income from a part time minimum wage job).

 

I've held a security clearance in the past without credit, and a lack of a credit history has never prevented me from getting a job when I was working. The only time it has been a problem was when I was working as a travel RN and could only rent cars from certain car rental places because I did not have a credit card. My agency was aware of my 'odd thinking' and if I had to go to a part of the country where there were no car rental places that would rent to me the agency would rent the car for me. No big deal. We have never encountered any other difficulty although since our choice to refrain from credit use is considered 'different' we often times find ourselves in 'discussions' with people who urge us to reconsider. :glare:

Edited December 13, 2011 by Rainefox

[Bootsie]

I think something needs to be clarified about what we are talking about here: this is a federal law that says banks may NOT consider household income in their decisions to extend credit. Banks and other creditors have NEVER been required to consider household income, or to support SAHMs in that way, but many, through the years, have found it good business sense to do so.

 

So the federal government has taken this anti-SAHM/SAHD position. Whether you personally feel credit is good or bad, or whether you need credit in your own name or not, is very much not the point. The point is that the federal government (which, coincidentally, will most certainly hold a SAHM/spouse liable for any taxes not paid by a working spouse on a joint return), says that a SAHM has to go to her working spouse and ask him to co-sign for her credit card. How is that not humiliating? And how is it ever a good idea for a SAHM not to have access to her own credit?

 

Men flake out, they die, they become disabled, EVERY SINGLE DAY. If you think that's not going to happen to you, you'd better be right, and you'd better not ever wake up and find yourself with no husband, no job, no income and no freakin' credit.

 

I love Dave Ramsey as much as the next guy, but it is very, very difficult to conduct your affairs in this day and age with no credit.

 

Terri

 

The federal government does not say that a SAHM has to go to her working spouse to get him to co-sign for a credit card. The federal government is saying that YOUR income should be used when a lender decides whether to extend you credit. Afterall, it is the income to which you have a legal claim which will be used to pay back the debt.

 

If you are in a community property state, your husband's income is legally your income. If you are not in a community property state, your husnband's income may not legally be yours to spend, despite the fact that you and your husband perceive it this way and treat it this way.

[PeacefulChaos]

I got one a few weeks ago. It asked for household income, not personal income.

 

This is what I have always found to be the case.

[bcnlvr]

But now as a stay at home spouse you are not allowed to go buy a car if your car dies with your dh. It does not matter what your credit score is. You've been penalized for being a SAH spouse.

 

It is irrelevant whether my spouse is living or not. I can go buy a car today if I want to. I don't need a credit card to do that. Getting a credit card (which is what this thread is about) is different than using one's good credit to obtain goods and services (something completely different).

[NicAnn]

Without credit I could not so much as rent a UHaul truck to move closer to family. Even if I had excellent credit (and I don't because I have a $79 paid medical collection, but that is another thread) I could not rent the truck. I could not pay for the funeral. I could not pay for the church because I'm a SAHM.

 

I really don't think everyone sees just how important it is to have credit in ones name and the ability to use said credit. It is not just about having/getting credit cards.

 

Although it is a catch-22 because FICO bases most of one's FICO score on one's payment history and one's debt amounts. In other words one should have a good history of paying one's credit cards and having a low balance/high credit ceiling.

 

So really in order to have credit with the oil company or to rent a UHaul truck one needs to have built up a good credit rating by using a couple of different major credit cards.

 

I guess I'm just having trouble with this discussion because Dh and I have never ever had a credit card and have never had that prevent us from doing anything. We move every 16 months (have for almost 8 years), and rent a truck each time. The gas, electricity and internet are in my name only (because I set them up), I've never not been able to pay them because of lack of credit. I just bought MIL a plane ticket without a credit card and DH was recently approved for a car financing, which we passed on. Is this perhaps a regional thing or am I missing something?

[NicAnn]

It is irrelevant whether my spouse is living or not. I can go buy a car today if I want to. I don't need a credit card to do that. Getting a credit card (which is what this thread is about) is different than using one's good credit to obtain goods and services (something completely different).

 

Ah, yes, this is where I'm having differences with other postings. I see now. :)

[Parrothead]

It is irrelevant whether my spouse is living or not. I can go buy a car today if I want to. I don't need a credit card to do that. Getting a credit card (which is what this thread is about) is different than using one's good credit to obtain goods and services (something completely different).

Not according to the new law. If you are a SAH spouse with no income you can not get credit in your own name without your spouse co-signing.

 

Not specifically credit cards. Any credit.

Edited December 13, 2011 by Parrothead

[Tarreymere]

You know, not to hijack the thread, I do believe that the federal government really is trying to discourage adults from being full-time homemakers and caregivers and maybe this is one of the ways they have found to do it. Breaking up the family makes the individual more dependent on the state and having every adult in the workforce means a larger tax base. Just sayin.........

[Mrs Mungo]

It is irrelevant whether my spouse is living or not. I can go buy a car today if I want to. I don't need a credit card to do that. Getting a credit card (which is what this thread is about) is different than using one's good credit to obtain goods and services (something completely different).

 

Having good credit often depends upon you proving your ability to maintain an account in good standing. Good credit doesn't mean no debt.

 

I do think this partially depends upon where you live and the situation there. It depends upon your job and lifestyle.

 

Not to the above poster, but in general:

So, you live frugally and modestly. Why would my dh take a job for 1/10 of what he makes so that we can live in backwards nowhere, live without credit and buy a house for $30k? It doesn't make sense on any level.

 

Why is a regular, low interest mortgage bad? You get a tax break on the house. It serves as an asset rather than a liability. We have had mortgages and made money on the house every time we have sold, but we are careful. We never buy new construction, we never buy in an overpriced area (we did not buy on CA or HI). Renting is a bad financial decision as often as buying.

Edited December 13, 2011 by Mrs Mungo
Clarity

[Tarreymere]

Having good credit often depends upon you proving your ability to maintain an account in good standing. Good credit doesn't mean no debt.

 

I do think this partially depends upon where you live and the situation there. It depends upon your job and lifestyle.

 

So, you live frugally and modestly. Why would my dh take a job for 1/10 of what he makes so that we can live in backwards nowhere, live without credit and buy a house for $30k? It doesn't make sense on any level.

 

Why is a regular, low interest mortgage bad? You get a tax break on the house. It serves as an asset rather than a liability. We have had mortgages and made money on the house every time we have sold, but we are careful. We never buy new construction, we never buy in an overpriced area (we did not buy on CA or HI). Renting is often a bad financial decision.

 

Hey Mrs. Mungo, some of us LIKE and SEEK OUT a lifestyle in the back of beyond! :D

My Dh has even chosen to take a job here in our little piece of backwards nowhere that pays even LESS than other jobs in backwards nowhere just because he likes what he does. I guess there is no accounting for taste! :thumbup:

 

Edited to add: I will even share some eggs and bulk wheat with you if our economy collapses like what happened in Greece, and all of that imaginary money our Federal Reserve keeps releasing becomes worthless.

Edited December 13, 2011 by Rainefox

[Parrothead]

I guess I'm just having trouble with this discussion because Dh and I have never ever had a credit card and have never had that prevent us from doing anything. We move every 16 months (have for almost 8 years), and rent a truck each time. The gas, electricity and internet are in my name only (because I set them up), I've never not been able to pay them because of lack of credit. I just bought MIL a plane ticket without a credit card and DH was recently approved for a car financing, which we passed on. Is this perhaps a regional thing or am I missing something?

This isn't just about one particular person or one particular way of doing business. I'm glad you and others such as Rainefox make it work without credit. Sadly that isn't the case with lots and lots of SAH spouses.

 

For many women utilities are in their husband's name. Many many companies use a credit score for more than just extending credit.

 

Utilities want to check a person's credit. Insurance companies will not quote without a credit check. Potential employeers will pass on someone who does not have credit or who has bad credit.

 

This is not just about getting/having a credit card. It goes beyond that. One's credit score is a vital part of doing business.

 

But in order to have good credit, one must have at least one major credit card with low utilization as 60% of one's credit score is based on payment of one's credit cards.

[Parrothead]

You know, not to hijack the thread, I do believe that the federal government really is trying to discourage adults from being full-time homemakers and caregivers and maybe this is one of the ways they have found to do it. Breaking up the family makes the individual more dependent on the state and having every adult in the workforce means a larger tax base. Just sayin.........

:iagree:I'm with you there sister.

[Mrs Mungo]

Hey Mrs. Mungo, some of us LIKE and SEEK OUT a lifestyle in the back of beyond! :D

My Dh has even chosen to take a job here in our little piece of backwards nowhere that pays even LESS than other jobs in backwards nowhere just because he likes what he does. I guess there is no accounting for taste! :thumbup:

 

Okay.

[LMA]

If you are a secondary card holder on a joint card and the primary card holder declares bankruptcy, the secondary card holder is responsible for the debt even if the primary card holder made all of the purchases. Just throwing this out because there are some unjust laws still in regard to the whole credit industry. In fact, the whole credit industry needs an overhaul. Just look at those high percentages if you keep a balance.

[bcnlvr]

Not according to the new law. If you are a SAH spouse with no income you can not get credit in your own name without your spouse co-signing.

 

Not specifically credit cards. Any credit.

 

I don't NEED more credit in my own name. I have a spotless credit report. Why would I want MORE credit in the form of credit cards? I am 40 years old and have plenty of street cred. (ie a long credit history). I have NEVER owned a credit card. I don't believe in them. You don't need one. Period. Someone else already said it: we are brainwashed to believe that we need to have one to get goods and services in this country. THIS IS SIMPLY **FALSE**. False. False.

 

I have no reason to lie. I actually live my life and always have without credit cards. You simply DO NOT NEED THEM.

[Tigger]

If you had no credit and your dh dropped dead, then you wouldn't be able to get a mortgage or buy a car. You might not even be able to open your own bank account without big fees.

 

A joint bank account has survivor clauses, usually it transfers to the spouse who is still alive - joint accounts are not terminated upon death of one of the joint account holders if you made sure you have noted survivor continues with account! It is an option on bank accounts, if you don't do it or haven't, just contact your bank and make the necessary changes.

 

A mortgage taken with one spouse's income, yet jointly deeded, has no change in its terms as long as the spouse pays the mortgage as agreed and/or pays it off (good reason to have life insurance BTW, to pay off the mortgage if needed).

 

Any property held - cars - survives the death of a spouse as long as the terms of the loan are met; one only need to know the laws of their state and follow those to ensure you don't face ruin should you or your spouse die. If your state has laws where real property would need to be paid upon death and settlement of the estate, make sure you have the necessary insurance or funds to see that that is possible.

[Tigger]

 

Then what happens over the next few years. I have oodles and oodles of insurance on the man just in case. That will all come in pretty much at once. Then over the next few years I'll live on the interest. But I won't go to work. Should I be allowed credit as a SAHM with no income then?

 

Interest is income. It isn't wage earnings, but it is income.

[Mrs Mungo]

A joint bank account has survivor clauses, usually it transfers to the spouse who is still alive - joint accounts are not terminated upon death of one of the joint account holders if you made sure you have noted survivor continues with account! It is an option on bank accounts, if you don't do it or haven't, just contact your bank and make the necessary changes.

 

Our bank isn't the problem. But, my bank doesn't have any branches. I might want a local account if something happened to dh and I was moving back home.

 

A mortgage taken with one spouse's income, yet jointly deeded, has no change in its terms as long as the spouse pays the mortgage as agreed and/or pays it off (good reason to have life insurance BTW, to pay off the mortgage if needed).

 

I wouldn't stay in Virginia or California or Hawaii or North Carolina or any of the other places that the military has moved us. Therefore, any mortgage I had would be irrelevant.

 

Our decisions are based upon *our* lives and are very well thought out, barring total economic collapse of the US. :001_rolleyes:

[Parrothead]

I don't NEED more credit in my own name. I have a spotless credit report. Why would I want MORE credit in the form of credit cards? I am 40 years old and have plenty of street cred. (ie a long credit history). I have NEVER owned a credit card. I don't believe in them. You don't need one. Period. Someone else already said it: we are brainwashed to believe that we need to have one to get goods and services in this country. THIS IS SIMPLY **FALSE**. False. False.

 

I have no reason to lie. I actually live my life and always have without credit cards. You simply DO NOT NEED THEM.

I get it. You, personally, don't need a credit card. This is beyond credit cards. It is about credit in general.

 

 

Since you have good credit you can have a decent insurance quote. Since you have good credit you don't have to put down a deposit for utilities. Since you have good credit you don't have to worry about a potential employer looking at your credit report and seeing nothing there.

 

Not so for many many stay at home spouses. Look beyond yourself in this situation and see how much of a hassle it will be for others. Possibly younger SAH spouses who do not have credit and now have no chance of building credit.

[Tigger]

But now as a stay at home spouse you are not allowed to go buy a car if your car dies with your dh. It does not matter what your credit score is. You've been penalized for being a SAH spouse.

 

And that is the unintended consequence of interfering in the market with regulations attempting to protect someone from themself - banks and creditors should, IMO, be free to determine who is credit-worthy and who is not. If banks and lenders think a SAHM/D is a good risk, fine by me, if they don't, that's fine too. Right now it's not their determination, it's the government making the decision for them and for you. Ain't regulation like this just grand?

[Parrothead]

And that is the unintended consequence of interfering in the market with regulations attempting to protect someone from themself - banks and creditors should, IMO, be free to determine who is credit-worthy and who is not. If banks and lenders think a SAHM/D is a good risk, fine by me, if they don't, that's fine too. Right now it's not their determination, it's the government making the decision for them and for you. Ain't regulation like this just grand?

:iagree: With you 100%. Let the free market do its thing.

[Hannah C.]

I just got a credit card a couple of weeks ago, on my own, based on my husband's income. I think the application actually asked me for income, and then the source - I put "spouse." I live in TX, however, so it's a communal property state.

 

There is a difference between *credit cards* and *credit.* Credit cards contribute to your credit score, along with any loans, mortgages, and perhaps even your electric bill.

 

So, if you are a SAHM whose husband has been managing all the bills, all the utilities are in his name, the car loans are in his name, the mortgage is in his name, etc., and something happens to him - and you *don't have* a credit score - you are going to have a horrible time. Utilities will want a security deposit, because you don't have a credit score - you are an unknown entity. Credit cards won't want to give you a card because you are an unknown entity. Loans will be hard to get and/or will have high interest rates because you are an unknown entity. All of this goes for someone who has lived their entire life paying cash and hasn't had their name on any utilities yet, too.

 

You may not need a credit card, but a good credit score is pretty important - and one of the easiest ways to contribute to your credit score is to get a credit card and use it for a while. Also, if you have expenses that savings can't cover, a credit card can mean the difference between, say, getting a "new" car and getting to work versus not being able to go to work at all.

 

DH and I have run into this. My mom added me to one of her credit cards as an authorized user when I was a teen. That credit card is on my credit report, so I had credit in college - and I didn't have to pay a $300 utilities deposit when I first set up electricity in my name. I was also able to get other credit cards as time went on. DH, on the other hand, didn't have any credit accounts, which led to him being denied for credit cards multiple times. He finally got one - when *I* cosigned for it. (Go figure..) Credit cards have also helped us with unexpected expenses. When we have carried a balance, we've paid it off within a month or two, except in periods with no interest.

Edited December 13, 2011 by Hannah C.

[bcnlvr]

I get it. You, personally, don't need a credit card. This is beyond credit cards. It is about credit in general.

 

 

Since you have good credit you can have a decent insurance quote. Since you have good credit you don't have to put down a deposit for utilities. Since you have good credit you don't have to worry about a potential employer looking at your credit report and seeing nothing there.

 

Not so for many many stay at home spouses. Look beyond yourself in this situation and see how much of a hassle it will be for others. Possibly younger SAH spouses who do not have credit and now have no chance of building credit.

 

Just because something is a hassle doesn't make it the wrong thing to do. Usually the opposite it true. In fact, credit companies bank on this. I believe that credit cards are part of the problem this country is having today. They perpetuate a cycle of inflation because when something is financed, it's price can be inflated due the the fact that "well, I can have it if I can afford the payments..." mentality can then ensue.

 

Look beyond myself?? I WAS a poor SAHM just starting out once, too. It WAS a hassle. BUT I made a decision that credit cards were not going to be a part of my life. It can be done. Has it been the easier, softer way? No. It is my personal choice to not be a part of the system, though.

 

And if my dh dies today and take the car with him....well, we have financially planned for that uncertainty with life insurance. It will pay for a new car.

Edited December 13, 2011 by bcnlvr

[Unicorn.]

Somebody needs to tell the credit card company's that I am a SAHM! I get daily offers, sometimes several a day.

[regentrude]

nm

Edited December 13, 2011 by regentrude

[Parrothead]

Just because something is a hassle doesn't make it the wrong thing to do. Usually the opposite it true. In fact, credit companies bank on this. I believe that credit cards are part of the problem this country is having today. They perpetuate a cycle of inflation because when something is financed, it's price can be inflated due the the fact that "well, I can have it if I can afford the payments..." mentality can then ensue.

 

Look beyond myself?? I WAS a poor SAHM just starting out once, too. It WAS a hassle. BUT I made a decision that credit cards were not going to be a part of my life. It can be done. Has it been the easier, softer way? No. It is my personal choice to not be a part of the system, though.

Credit cards yes, but not credit in general.

 

We seem to be talking about two different aspects of the same thing. I'm seeing the poor SAHM with a limited income who has to pay a higher deposit or insurance premium just because she has not credit. How can she plan to buy a new car with the insurance money, if she can't afford to pay the higher premiums?

 

You are discussing life without credit cards.

 

I'll agree one can live life without credit cards. But it is extremely difficult and very expensive to live life without credit. This regulation in question is not just targeting credit cards. It is targeting all credit in general.

 

ETA: And while one can live without credit cards, in order to have an optimal credit score one needs one, preferably two, major credit cards with a good pay record and low utilization. One will not make it to the 800 club without them.

Edited December 13, 2011 by Parrothead

[bcnlvr]

Somebody needs to tell the credit card company's that I am a SAHM! I get daily offers, sometimes several a day.

 

:iagree: NO kidding, right?! It's the bulk of my shredded paper.