When you apply for a credit card, there are several factors that can impact your chances for approval. Two major considerations are your credit history and your income.
If you are a gig worker without a steady income stream, or if you’re a full-time student, a stay-at-home parent, or if you you’re not currently working, your chances for approval can be boosted by using your spouse’s income on a credit card application. Using your spouse’s income can help a credit card issuer approve your application so that you can secure a credit card in your own name.
“The law that allows this is the Credit Card Accountability, Responsibility and Disclosure Act, a.k.a. the CARD Act of 2009 and 2013, and it’s been a tremendous boon to stay-at-home parents, because under the old system, if they reported a personal income of $0, then they might be rejected when they applied for a credit card,” notes Monica Eaton, a credit expert and CEO of Chargebacks 911. “And without their own credit card, it was really tough for the nonworking spouse to build-up his or her own credit history or accrue their own reward points. This new system is much more egalitarian — and more realistic for the day-to-day realities of Americans in 2024.”
Before including your spouse’s income on a credit card application, it’s essential to consider the potential drawbacks. Understanding these factors can help you make informed decisions about building your own credit history.
➤ SEE MORE:Can you get a credit card as a stay-at-home parent?
Can you use spouse’s income for credit card application
You may add your spouse’s or a partner’s income to boost your chances of approval. And, you don’t have to be married. “The answer is yes, so long as you are 21 or older and have a reasonable expectation of access to the funds to make payments on the credit card,” says Heather Philp, Wells Fargo credit card products senior vice president.
When a credit card application in under consideration, the Consumer Finance Protection Bureau says that issuers consider the consumer’s ability to make the required minimum periodic payments under the terms of the account based on the consumer’s income or assets and the consumer’s current obligations.
Does this policy always apply?
If you’re under 21 you cannot use your spouse or partner’s income to qualify for credit, according to Experian. Your creditworthiness will be determined solely by your own earnings.
Do credit cards verify income?
The specific requirements and vetting process for credit cards varies by issuer, however, Philp says a credit card issuer may not initially ask for information to verify your income. “But, it doesn’t mean they won’t request it, even after your application is approved,” she cautions.
To that point, Philp stresses the importance of being as accurate as possible because credit card issuers look for some level of reasonableness when verifying the income reported on your application to other sources, such as tax returns and paystubs. “Providing false information on a credit card application is considered fraud,” she warns.
➤ SEE MORE:Can I apply for a credit card with no income?
Will my credit cards show up on my spouse’s credit report?
No, the pro is that your spouse’s income helped you get approved, but unless they are added to your account, a joint-account holder or an authorized user, your credit history shouldn’t impact their credit.
“Credit card issuers generally provide account information to the credit reporting agencies for all account users, which includes both the primary account owner and authorized users,” says Philp.
➤ LINK LABEL:What is the difference between a credit card joint account holder and an authorized user?
Despite the option to include your spouse’s income, there are benefits to relying solely on your income
Using a spouse’s income to qualify for a credit card can lead to a higher credit limit, potentially tempting overspending and debt accumulation, especially for those with a history of financial challenges. Additionally, relying on a partner’s income to maintain credit card payments can be risky, as relationship dynamics and financial situations can change. Experts often advise building credit independently for greater long-term financial stability.
