I have good credit (FICO score is over 800), however, my husband has the big income. His score is not too good, it's not really bad but I would like to work on raising it. We are thinking about building a house in the next couple of years and I don't want any hassles obtaining a new construction loan. I have been thinking about adding my husband as an authorized user on my VISA and Mastercard. Both cards have been open for quite a long time, I have never been late and I pay off my balance every month. I read that being an authorized user could help someone's credit if the cards were managed well. Should I do this and will it have a decent impact on husband's FICO score? Right now he has two credit cards (no balances) - but I was thinking about having him close those and we would just use my two. Thanks for any advice
Hi Kimmy: Have you pulled his reports to see what's keeping him down? I don't think adding him as an AU is a bad idea, but depending on his reports, maybe there are other things keeping his score low? Worth some disputes to the CRA potentially. I'd pull the reports and start from there. **BTW, to all the mortgage gurus out there...i kinda find myself in a similar situation. I'm planning on getting a house soon. My scores arent' great (middle = 619) but i'm working on them very hard. Meanwhile, DH has excellent scores...but i make much more. How would one apply for a mtg based on the above? DH as principal and me cosign? other way around? Thanks, DB
I finished building my own house early this year, and needed a construction loan. I only had very limited at the time, been a US resident for about three months. I found a bank in CA - Indymac - who only require a FICO score of 620 to approve a loan of $500k - plus they will do this without a general contractor being signed on so if have the time you can get your own subs and save a bunch of money!
Thanks DB. I just requested a copy of his credit report so we can figure out what is pulling him down. I am sure it is his student loans - he defaulted on them a couple times. As for you obtaining a mortgage, you can both be cosigners on the loan. That way you can use your great income and DH's good credit. We just went through that when we tried to obtain a loan for vacant land. While my credit score would have helped us get the loan, I am in between jobs right now so they couldn't use my credit and his income. Good luck Kimmy
Thanks lakpr! I will definitely talk to my husband about doing that. I even already have some money invested in CD's The banks have to disclose to you if they are pulling a hard copy of your credit report, right? Kimmy
You are welcome Kimmy! As for disclosing whether a credit report will be pulled -- none of the banks/credit unions volunteered that information to us when we went shopping. We *HAD* to ask upfront. First Union/Wachovia and Fleet are DEFINITELY the worst ... they insisted that they can't give us the installment loan without pulling our reports! Something about their "guidelines" which prevents lending your own money to you. I stayed away from them. Your mileage may vary.
"As for you obtaining a mortgage, you can both be cosigners on the loan. That way you can use your great income and DH's good credit. " Is this really the way it would wash out? I'm truly confused here. I have not-so-good credit, but good income. DH has excellent credit, but not-so-good income. Whose credit/income would they use? Can they use one's credit and another one's income? :/ Thanks! DB
I'm not sure how they look at scores. In my case, I had the larger income. My name is first on the mortgage. But they'll look at the overall income, as a household income. I would go and talk to the mortgage broker, and ask if it makes any difference. You may be fine using your scores and household income with you being joint mortgagees.
DB - Recently my husband applied for a land loan and had problems getting it because his credit score was not high enough. I called the lender and told them I have great credit, gave them my FICO score and they said that with my credit we could probably then obtain the loan (based on husband's income alone) When I asked if not having a job was a problem they said it definitely was, that I couldn't be on the loan. The lender then told me that if I had any job, even if I made minimum wage, we would probably get the loan since I had great credit and husband has a great income but only so-so credit. Maybe we were told wrong?? Kimmy
good question, Kimmy... Any mortgage pros out there care to comment? I'm sure this has come up before. How do mortgage lenders/brokers treat a situation where one applicant has good income and only so-so credit and the other applicant has excellent credit and only so-so income? (married or, more appropriate in my case, not married..well, until it's legal i suppose Any more insight would be splendid... Thanks, DB
