Second Card Holder and Credit Score

united4ever

Hi, I am the main cardholder on all three of the credit cards we have.

Next year we will apply for a remortgage in both our names.

Would my wifes credit score reflect these credit cards when it comes to her credit score? I heard that having no credit cards can work against you when a credit check takes place. My wife has been offered a credit card from her bank - not a great credit card but should we look to apply for this to improve her credit score or is this not necessary since she is already a second holder on 3 cards?

Thanks in advance

LplateSaver

The main card holder has responsibility over all the debt and this is reflected in how it's reported to the CRAs. At the minute your wife has no credit card and if she has no other credit (eg mobile phone) then I would defiently recommend getting a credit card to build up a credit history.

Was the banks offer guaranteed acceptance?

Tixy

Its not that having no credit card is a big issue, it is having no credit account history that can be an issue.

Does she have any credit accounts? is the current mortgage in her name?

united4ever

The mortgage is in both our names.

She has had a basic current account for many years which her part time wages are paid into....periodically we just draw it all out and put it in other places with better interest or use for big purchases. This bank have written to us with an application form recommending their credit card so seems like they would accept her.

National_Debtline

Hi united4ever


It's not that surprising that the bank would write to your wife offering this card - they are better placed than any other lender to assess her financial position, as money flows in and out of the bank account there each month.


You refer to the card as "not great" - by that, I assume that you mean there is a hefty rate of interest charged on any purchases. If your wife were considering taking out such a card in order to build her credit up, the key would be to only use it for certain essentials each month - such as a grocery shop or filling up the car - and then (this is very important) paying the balance in full before any interest can accrue on the balance.


How much this might improve your collective prospects for a good remortgage deal is impossible to quantify. It may not be as significant as other factors, such as the proportion of the property's value you are looking to remortgage for (also known as loan-to-value ratio).


Dennis
@natdebtline

united4ever

Sure, thanks a lot, yes we would use it a few times each month and pay off in full by direct debit so therefore would be no cost involved to us. So 'not great' is only in the sense that I would probably not choose it over other credit cards that have cashback or freebies etc.

Thanks for your advice.