Sally Herigstad is a certified public accountant and the author of "Help! I Can't Pay My Bills: Surviving a Financial Crisis" (St. Martin's Press, 2006).
Dear To Her Credit,
I want to improve my low credit score by piggybacking on my husband's credit cards -- he has a FICO score of 790. My concern is that my score will lower his. Could that happen? How can I confirm that? Thanks for your help. -- Tamara
Dear Tamara,
It's all upside and no downside to piggybacking on your husband's credit cards to improve your credit score. That's because you'll get to claim the stellar history of each of his cards on your credit report as if you had been the one making payments on time and otherwise behaving responsibly all those years. What a deal!
And your husband's score is safe. It can't possibly suffer when he adds you to his accounts, as long as the accounts remain in good standing. Your old cards and your prior credit history can't somehow hitch a ride on the cards you have together over to his report. Even if you have a bankruptcy or foreclosure in recent history, his report remains perfect.
It won't matter much whether he adds you as a joint account holder or an authorized user. The accounts will improve your report either way. (FICO scores now filter out authorized user scams designed to piggyback on the scores of total strangers, while letting legitimate authorized users benefit when they are added to accounts.) If your husband adds you as a joint account holder, you will be equally responsible for the balances, now and in the future. If he adds you an authorized user, you can spend money on the accounts, but the banks can't go after you as an account holder if the balance is not paid. However, for most married couples who don't keep separate finances or for those who live in community property states, it's all coming out of the same purse anyway.
One reason to be added as a joint account holder instead of an authorized user is that in the unthinkable event that your husband should die, a joint account won't be automatically canceled.
Now here's the caveat: Do not add your husband to your less-than-stellar accounts. All you have to do is put his innocent name on a troubled credit card, and that 790 score will take a fast tumble. It doesn't seem fair that missed payments from before his time would hurt his credit, but they will.
If there is still a huge disparity between your credit score and his, and you need to apply for a major credit line or mortgage before you can bring yours up to his level, you may want to have your husband apply for credit without you. If his income supports it, he can even buy a house based on his qualifications.
Remember, if you want to improve your score and not damage your husband's, keeping the accounts in excellent standing is key. Because you have different credit scores, I'll assume you haven't been married very long. It takes time to learn to trust each other with money, and adding you to his credit card is a demonstration of his love and belief in you. To continue to build your new financial life together, practice complete transparency with your finances. Transparency builds trust. Keep talking about your financial goals together and working as a team, and you should have a long and successful money life together.
Sally Herigstad answers questions about credit every week for CreditCards.com. Herigstad is a certified public accountant, author and speaker. She also writes regularly for MSN Money, Interest.com, Bankrate.com and RedPlum.com, and has been a guest on Martha Stewart radio and other programs. You can read more about personal finance and download free budgeting worksheets at her website: www.sallyherigstad.com
To Her Credit answers a question about a debt or credit issue from a CreditCards.com reader each week.
Send your question to Sally.
Published: February 12, 2010
Three most recent To Her Credit stories:
Can bankruptcy tap surprise inheritance? – Having filed for Chapter 13, a woman discovers a surprise inheritance and worries whether she has to turn over the funds to her trustee ...
Joint credit cards don't dissolve with divorce – Getting divorced? If you jointly share credit cards, be prepared to cancel those cards and dissipate the debt before things are finalized d ...
Do you marry someone who has big debt? – He may be Prince Charming, but marrying someone who is carrying a lot of debt can put a serious crimp in your ability to plan for the future ...
Did you like this story? Then sign up for CreditCards.com’s weekly e-newsletter for the latest news, advice, articles and tips. It's FREE. Once a week you will receive the top credit card industry news in your inbox. Sign up now!
