Credit Card Myths of Stay-At-Home Parents

Credit Card Myths of Stay-At-Home Parents

Getting approved for credit cards as a stay-at-home mom or dad can be tricky. With no income of your own, it may seem impossible to qualify. But don’t worry – it is possible! There are some common myths about credit cards for stay-at-home parents that simply aren’t true. Let’s debunk those myths so you can get the plastic you need.

Myth #1: You’ll Never Get Approved for a Credit Card as a Stay-at-Home Parent

This used to be true, but not anymore! Before 2013, credit card companies were required to only consider the applicant’s income when approving credit cards. This meant stay-at-home parents were out of luck. But thanks to the Credit Card Accountability Responsibility and Disclosure (CARD) Act, the rules have changed. Now, issuers can consider your spouse’s income too. So as long as your family’s total income meets the issuer’s requirements, you have a good chance of approval.

Myth #2: You Need Your Own Income

Nope! As mentioned above, issuers can now consider your spouse’s income when reviewing your application. So even with $0 income of your own, you can still qualify by using your spouse’s income. Make sure to include their income when applying.

Myth #3: You’ll Only Get a Tiny Credit Limit

Credit limits are based on income, so with access to your spouse’s income, you can qualify for a higher limit. For example, if your spouse makes $100,000 and the issuer approves lines of credit up to 50% of income, you could get a $50,000 limit. That’s a lot more than the $500 – $1,000 limits stay-at-home parents used to get approved for.

Myth #4: You Can Only Get Secured Credit Cards

Secured cards used to be the only option, but not anymore. Unsecured cards are now a possibility too thanks to the CARD Act. Just make sure to provide your spouse’s income on the application. With good credit, you may also qualify for rewards cards with sign-up bonuses and cash back. The Chase Freedom Unlimited and Blue Cash Preferred are great options.

Myth #5: Your Spouse Has to Be the Primary Cardholder

Nope, you can be the primary cardholder even if it’s your spouse’s income getting you approved. Add them as an authorized user instead. This way, the account will help build your credit history. Being the primary account holder is better for your credit score.

Myth #6: Balance Transfers Aren’t Allowed

Balance transfers can be a great way to save money on interest charges. Many cards allow balance transfers, and stay-at-home parents can qualify. Make sure to consider balance transfer offers when applying for new cards. The Chase Slate card offers 0% interest for 15 months, for example.

Myth #7: You’ll Pay Higher Interest Rates

Your interest rate is primarily based on your credit score and history, not your income. With a good score of 700+, you can qualify for low interest rates. Only applicants with poor credit get stuck with high interest cards. Maintain good credit and you should get fair rates.

Myth #8: Your Card Will Get Cancelled Once the Issuer Realizes You’re Unemployed

Nope! Issuers are aware you don’t have an income when approving your application, so they won’t cancel your card later when they “realize” you don’t work. As long as the payments are made on time, you’re good. Just don’t close the income source you used to qualify.

Myth #9: You Can’t Get Rewards Cards

Not true! The right rewards credit card can provide major perks, even if you’re a stay-at-home parent. Airline miles, cashback, and other bonuses are 100% possible. I already mentioned the Chase Freedom Unlimited, but cards like the Capital One Savor are great for earning cash rewards on household spending.

Myth #10: Your Spouse’s Credit Score is All That Matters

While your spouse’s score is considered, yours is too. Having good credit yourself will improve your chances of approval and can help you qualify for better terms. If your credit needs work, review these steps to boost your score.

Stay-at-home moms and dads can absolutely get approved for credit cards – don’t let these myths convince you otherwise! Just make sure to provide your spouse’s income and maintain good credit. With the right card, you can earn rewards, build credit, and enjoy the flexibility of plastic. Don’t be afraid to apply – you’ve got this!

References

• The CFPB Amends the Card Act Rule to Make it Easier for Stay-at-Home Spouses and Partners to Get Credit Cards
• Best Credit Cards for Stay-at-Home Parents
• Blue Cash Preferred Card from American Express Review
• Chase Slate Credit Card Review
• Capital One Savor Rewards Credit Card Review
• Improving Credit 101: How To Build And Rebuild Your Credit