Originally Posted by t-rev
My fiance and I are going to be applying for a joint credit card account to use for wedding related purchases. Couple of questions for those that know.
Our household income is 150K+, we own a home (less than 3 months), I've had my job 6+ years, she recently graduated from grad school and has been working months.
My credit score is above 750, hers is terrible (a little irresponsible in college). What card should we go for? Rewards aren't that important, I fly NW or Delta so earning miles would be a benefit.
Would having her as a joint applicant hurt our chances of getting the card? Would like to have her on there to help her credit score.
Hi. I wish you well, but having been married and divorced. My recommendation is as follows:
1. Use your credit to get the card. You will get a better interest rate.
2. Add her as an authorized user, provide her social security number. She will have limited responsibility for these charges long-term. You will be primarily responsible.
3. Once the wedding is over, cut the card up, and pay it off the best that you can.
3. It sounds like you will carry a balance, so you should focus on the interest rate. Consider the following options:
a. Merrill Plus Card - Low interest rate 9.99%; plus you get points and benefits. This is probably the best credit card if you will not payoff the balance every month. (Low rate; no foriegn transaction fee; cash advances are at the same rate as purchases; concierge services; great benefits if you spend alot
b. MBNA World Points Visa Signature - Low interest rate 9.99%; plus you get points and benefits. I think that the Merrill Plus Card is better.
c. If you really really really believe that you will payoff your wedding purchases quickly, get a card with a super low introductory rate. There are many to choose from. Just make sure that the regular rate isnt super high. My favorite program is Citibank Chairman Card (or Premier Pass).
I have to give some advice too... Financial management skills take time to grow. If your fiance did not manage her credit well in college, it will take some time for her to change her habits. Help her grow those skills. Do not put her in a ferrari before she learns how to drive, i.e. don't give her a flashy credit card (like Merrill Lynch Plus, Citi Chairman, etc.) with a giant sized credit limit that you will have joint responsibility for. It could destroy your relationship and your personal credit.
(Of course this lesson is from a personal case study. My x-wife had a "little bit of trouble" in college. I gave her an AMEX Gold card. In the months before we split up for good she ran up around $25,000 on it. She is not a bad person. Eventually she paid it off. However, I had a major ding on my credit score because of a giant size credit card balance. This story could have ended a lot worse.)