What Will Happen If I Add My Wife to My Credit Card?
If you have a better credit score than your wife, adding her to your card may help her credit score to rise; however, you must make sure that you both continue to use the account responsibly, or you will both suffer from sinking credit scores. Used the right way, though, you will build a credit history together and create a solid foundation for any future finance needs.
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Your Credit Score
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Simply adding your spouse to your credit card won't affect your credit score. Your credit score is a reflection of only your credit history, and lenders will be able to differentiate between your account and your wife's. However, if your credit score is higher than your wife's, you may be offered a higher interest rate or lower credit limit when you make your account a joint account.
Her Credit Score
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If your wife's credit score is lower than yours, then adding her to your credit card may benefit her. The FICO score is calculated by using accounts in your name or joint accounts for which you are liable. Therefore, if her credit score needs a boost and your accounts have little to no balance and you have a history of paying on time, her score will get a boost.
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Warnings
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Adding your spouse to your credit card is only a good idea if the spouse with the lower credit score is being added to an account opened by the spouse with the higher credit score, and if the account is in good standing. If you add yourself to an account in which your wife has a poor payment history, those accounts could weigh down your credit score. Also, it's important that once your wife has joined your account, you continue to make on-time payments and keep the balance low, or else these factors could affect both your credit scores negatively.
Considerations
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Everyone in the U.S. is entitled to a free credit report from each of the three credit bureaus through the Annual Credit Report website. Before joining accounts, look at your credit reports closely to see which accounts would be best to have jointly and how you want to work together to improve your credit. If both parties have good credit, it's beneficial to your future because it's much easier to obtain mortgages, car loans and any other type of financing you may need if you have good credit. You'll also be able to qualify for lower interest rates, saving you money for the things you really want to spend it on.
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