Getting a credit score

[Copperblade 0]

Ok, so I have my own personal opinions about the credit score system works. (What? My score goes down just because someone pulled a credit check on me?!) I'm a pretty financially conservative guy--always pay off credit cards on time, make money before I spend it, etc. I guess I'm lucky. I'm also planning on reducing or completely getting rid of all my credit cards.

But my wife has never had a credit card, and sees no reason to get one. (Neither do I really--I plan on just giving her a one of the bank debit cards when I add her to my bank account.) But recently I tried to open a ShareBuilder account for her so I could set up a Roth IRA for her and max out my retirement contributions for the both of us. It seems when they tried to pull her credit score they came up snake-eyes and have blocked her account. I thought her having an SSN would have been enough for them. (It's not like she signed up for an options account or anything requiring her to go on margin.)

So what do you guys think? Am I going to run into any problems with banks and her credit score? If I add her to my bank account(s) will she start to have a credit score?

I'm thinking about just closing her account and going with another place... I'm not sure if I like ShareBuilder anyway. (I use Scottrade.)

[kaffy 2]

So what do you guys think? Am I going to run into any problems with banks and her credit score?

Do you own your own home? If not and you are considering buying a house in the future the banks will look at your credit scored to determine your mortgage rate (unless you are paying cash and don't need a loan)

If I add her to my bank account(s) will she start to have a credit score?

Only if you add her to your credit card account as a joint account holder.

[Darnell 8,478]

Specifically about ShareBuilder -

Call, get a Human and get it sorted.

The 'auto-checks' for their online portal snagged her, IMO.

----

There are other ways to build her credit history, over 6 months, but you'll need to put aside about 5K to do it.

If you have an interest, post here again, I'll detail the steps.

[Dan J 277]

Ok, so I have my own personal opinions about the credit score system works. (What? My score goes down just because someone pulled a credit check on me?!) I'm a pretty financially conservative guy--always pay off credit cards on time, make money before I spend it, etc. I guess I'm lucky. I'm also planning on reducing or completely getting rid of all my credit cards.

But my wife has never had a credit card, and sees no reason to get one. (Neither do I really--I plan on just giving her a one of the bank debit cards when I add her to my bank account.) But recently I tried to open a ShareBuilder account for her so I could set up a Roth IRA for her and max out my retirement contributions for the both of us. It seems when they tried to pull her credit score they came up snake-eyes and have blocked her account. I thought her having an SSN would have been enough for them. (It's not like she signed up for an options account or anything requiring her to go on margin.)

So what do you guys think? Am I going to run into any problems with banks and her credit score? If I add her to my bank account(s) will she start to have a credit score?

I'm thinking about just closing her account and going with another place... I'm not sure if I like ShareBuilder anyway. (I use Scottrade.)

Unfortunately getting rid of your credit cards probably wont help your wife.

If you add her as a joint account holder to your checking and credit cards, it can help boost her credit. Otherwise you will probably have to take the slow and arduous way of starting with a secured credit card and working up from there.

[kaffy 2]

If you add her as a joint account holder to your checking and credit cards, it can help boost her credit. Otherwise you will probably have to take the slow and arduous way of starting with a secured credit card and working up from there.

I suggest doing both. I did exactly those two steps and also took out a car loan when we bought our second vehicle last August and in the 18 months I've been here I've built my credit score to above 800 and it helped us secure a great interest rate when we bought our house this month

[illnevergetthis 5]

I just attended a class on credit Friday for my job. Apparently, adding a person to your existing credit card no longer works for building credit. This used to be a really easy way to start building credit, but....

Edited February 21, 2010 by illnevergetthis

[kaffy 2]

I just attended a class on credit Friday for my job. Apparently, adding a person to your existing credit card no longer works for building credit. This used to be a really easy way to start building credit, but....

It depends if you add them as a supplemental card holder or a joint account holder. There is a difference

[Dan J 277]

It depends if you add them as a supplemental card holder or a joint account holder. There is a difference

Adding someone on as an authorized card user was being exploited by people to rebuilt credit scores so that will no longer work. But being a joint account holder should still help boost credit.

[dianecmea 1]

you can help your wife build her credit by adding her as an authorized user in your credit cards. Although the credit card company will not hold her financially responsible, as long as they report to the credit bureaus. FICO still recognizes authorized users. As long as you keep the acct in good standing, it'll boost her credit,

[christeen 966]

Yes, it is important to at least get her on the map when it comes to a credit score. Without ANY credit score, she will have future issues including identity questions, possible problems with employers, landlords, getting utilities put in her name, and even employment as some employers run a credit check (due to increased possibility of theft from employees with ongoing credit/financial problems.). As mentioned earlier, if you have not purchased a home or plan to in the future this will be an issue. Also, with a blank social security and credit history you open up the possibility for easy identity theft, especially with new social security numbers...

You can have her put on as a 'joint" holder, not just getting her a card. I would also suggest you open a secured credit card, you can do that for as little as $500 at most major banks. After about a year of using and paying off any balances on the card they should convert it to an unsecured card.

[Copperblade 0]

Thanks everyone for the feedback. I guess I've become a little more critical or "nutty" about these things as time goes on. I talked to my wife about it and apparently one of the main reasons she didn't get a credit card before was because in Indonesia she said there are fees you have to pay.

And it's true I won't be able to close all of my cards at least until after I get a house. I probably never will close all of them. And... I'll probably be adding her to one of them if she needs to have a credit score.

Thanks.

[Darnell 8,478]

there's another way for her to build up a credit score.

Come on, ask me !

[Texanadian 10]

Gotta get her her own credit card. It probably won't be a good one to start. But once you get a year or so of using and paying it off, her credit will be good.

My FICO went from zero to 750 in less than a year using the above method. $500 credit limit. I didn't even have a job.