Discarged now rebuilding.....

[pa308]

First let me say that by rebuilding I do not mean rebuilding my debt....

However I do want to rebuild my credit. I have reviewed my credit reports and they look to have everything IIB that should be. Credit Karma indicates my score as 666 and my wife 671.

My plan is to live cash but use credit card for gasoline and pay off monthly, maybe leaving a small balance to carry over to the next month (zero percent card first year).

I have applied for and received a Capital One unsecured card with 3,000 limit. Zero percent 12 months then 19%. I realize not great but I will not be carrying a balance.

My question, my wife will need to rebuild as well as she filed with me. Does adding her as an authorized user (getting her a card on the account) help out her score or will only applying for an account in her name help her score? She is a stay at home mom now. I see on the application it asks for household income, I assume that would mean my income right? She has received a pre-approved from Capital One as well so that is who I'm thinking of having her apply (same as I received).

We're not looking to get into the same boat we just got into, but I am realistic at the same time. I will save and build an emergency fund and I'm trying to save but there may come a time in the future when it is needed and not doing anything to rebuild at this time wouldnt be prudent.

Any advice is of course appreciated.

[b_girl]

Good question..I'm wondering the same thing. And don't feel bad about applying for (and using) a credit card...it's the quickest and easiest way to rehab credit. We all need credit to make the major purchases in our life..it's how we use it that matters.

[pa308]

Thanks b girl.

Looks like we were discharged same day...

[WoodSprite]

First let me say that by rebuilding I do not mean rebuilding my debt....

However I do want to rebuild my credit. I have reviewed my credit reports and they look to have everything IIB that should be. Credit Karma indicates my score as 666 and my wife 671.

My plan is to live cash but use credit card for gasoline and pay off monthly, maybe leaving a small balance to carry over to the next month (zero percent card first year).

I have applied for and received a Capital One unsecured card with 3,000 limit. Zero percent 12 months then 19%. I realize not great but I will not be carrying a balance.

My question, my wife will need to rebuild as well as she filed with me. Does adding her as an authorized user (getting her a card on the account) help out her score or will only applying for an account in her name help her score? She is a stay at home mom now. I see on the application it asks for household income, I assume that would mean my income right? She has received a pre-approved from Capital One as well so that is who I'm thinking of having her apply (same as I received).

We're not looking to get into the same boat we just got into, but I am realistic at the same time. I will save and build an emergency fund and I'm trying to save but there may come a time in the future when it is needed and not doing anything to rebuild at this time wouldnt be prudent.

Any advice is of course appreciated.

Your plan sounds very wise. I'm with you guys on cc use going forward, although I haven't made any moves in that direction yet. I've been managing on cash only for over a year now, and since my income really is just barely enough to cover expenses, I don't want to have the temptation available. If we're strapped, we just have to find a way to make more money, and another way to cook beans and rice!

My credit report looks good, too, though, which is a relief. It has tumbled from 820 a couple of years ago to 655, but I'm satisfied for now.

Long about 25 years ago, I began building my credit by being an authorized user on a very dear friend's card. Of course, all the rules there are in life seem to have changed in 25 years, but I imagine it would be at least a start for your wife.

Good luck!

[chloe0724]

Being an authorized user does not reflect on your credit score. She would have to be a co-borrower.

[b_girl]

Your plan sounds very wise. I'm with you guys on cc use going forward, although I haven't made any moves in that direction yet. I've been managing on cash only for over a year now, and since my income really is just barely enough to cover expenses, I don't want to have the temptation available. If we're strapped, we just have to find a way to make more money, and another way to cook beans and rice!

I think that's fantastic, Woodsprite! I'm actually enjoying being all cash, too....we're going on 8 months sans CCs ourselves. I just think never using/needing credit in the future isn't realistic, especially if you ever want to purchase any kind of home. While I totally understand the anti-credit sentiment of some, it's better to learn how to control credit...you never know when you might actually want/need it in the future.

[vegas911]

Being an authorized user does not reflect on your credit score. She would have to be a co-borrower.

Amex will report to authorized users report the history of the cardholder if you want them to.
I know when my 20k+ balance showed on my daughters credit report...

They stopped reporting when I asked them to and now my daughters credit is free of my balance.

[pa308]

Thanks for the input everyone. Woodsprite we have been cash only for just about a year as well. I agree that it is a good feeling being all cash.

I will have my wife open her own account so that it helps her credit. If something were to happen to me I wouldn't want her to have problmes.