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New Credit Card Rules
2012 regulations hurt stay-at-home parents
another family member. The stay-at-home
spouse could get a credit card in his/her
own name based on the salary of the work-
ing spouse.
This new income requirement only
applies to new accounts. It does not affect
existing credit card accounts.
other credit options
late payment or a high balance, this can also
drag down your score."
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ile
is also available on mobile
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MOBILE
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authorized accounts," says Hardekopf. "If
your spouse already has a low credit score,
it won't improve your score. If they have a
erm
viduals who can afford them is a good idea,
but just like many regulations, there are
unintended consequences," says Bill
Hardekopf, CEO of LowCards.com. "This
is a bigger problem than just the name on a
piece of plastic. Credit card payment histo-
ry is an important component in a credit
score. If you aren't building a good history
with a credit card in your own name, this
could drag down your credit score and may
cause higher rates with future loans or
become a reason for rejection during job
interviews."
Before the regulation, a person could get a
credit card account based on the income of
Barre Hamp (L) and Terrell Terry (C) of the Shinnecock Nation met up with
Edward k. Yava sr., of the Colorado River Indian Tribes at the 68th annual
National Congress of American Indians. Issues under discussion ranged
from economic development to health, diet and the disproportionate
number of Native American children in foster care.
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This means a stay-at-home
parent who has no outside
income will find it very difficult to
get approved for a credit card
s ka
Secured cards. If you don't qualify for a
credit card in your own name, you may
want to consider a secured card. The credit
limit will be the amount of your deposit.
But cards like Capital One's Secured
MasterCard may give credit line increases
based on your payment and credit history.
"Secured cards can be a good place to start
when you can't get a credit card," says
Hardekopf. "Make sure
the card reports to all three
credit bureaus so you get
credit for a good payment
history. If you carry a bal-
ance, you will still have to
pay interest, so pay off the
card each month. Many
secured cards have higher
interest rates than standard
credit cards."
authorized user. You can also become
an authorized user on your spouse's credit
card. Your name will appear on the credit
card and you will have full charging privi-
leges, but you are not the owner of the
account. The lender will report the credit
information of both you and your spouse to
the credit bureaus. FICO includes author-
ized accounts in its score calculation and if
your spouse has a good payment history,
this can boost your credit score. Vantage
Score does not use authorized user accounts
in its formula.
"Keep in mind that there are some risks to
the
D
ecember and January are the biggest
months of the year for credit card
applications. This is the time that
consumers look for cards with better
rewards or cards with lower rates to get
their finances in shape.
The new rule is part of the CARD Act and
says credit card issuers must only consider
the applicant's own salary or other income.
Any person that applies for a card must be
able to make his or her own payments.
Household income or combined income is
no longer considered in the approval
process. This means a stay-at-home parent
who has no outside income will find it very
difficult to get approved for a credit card.
"The intent of limiting credit cards to indi-
Congress of Indians
November 16, 2011 The Portland and Seattle Skanner Page 9