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Now stay at home spouses will have to face new credit card rules

Monday, July 04, 2011

The ideal situation would be having a steady family income, good credit score, and spending much less than what you can afford to. Having zero balances on all the credit cards you own and not having any debt other than the reasonable home mortgage – all of this sound good. But despite your sterling credit, there are some things that might change for stay-at-home spouses. New credit might just be cut off as a result of a new set of rules.

There were basically some good intentions when these things started off. Card issuers had a feeling of guilt with regard to their dealings with the customers. Payments were made on a Sunday, banks were shut down for the weekend, but the payments were termed as late. Fines were then levied and teaser rates were revoked. Payments were generally applied with debts that had the lowest rate of interest.

The CARD Act of 2009 had taken effect during last February and brought up reforms to all these practices. But the provision according to the Act for college students seems to be having unforeseen consequences for the stay-at-home spouses. To curb the menace of college students accessing huge credit and landing in debts, the applicant’s income had to be used to qualify for the credit cards.

Prior to the card act the family income could be shown as proof of income to obtain a credit card. But now, half-time working spouses and stay-at-home spouses are facing trouble. Sooner or later only individual income will be considered while applying for credit.