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Original poster

Getting a credit card as a sahp

35 replies

titchypumpkin · 01/11/2014 17:44

Hello

I'm a sahp at the moment. I have an M&S credit card, I pay it off in full each month but put the majority of my spending on there so that I can collect M&S vouchers (and I also feel better buying online/large purchases with a credit card). The thing is I don't really shop at M&S much so would rather get a different credit card for somewhere I could make better use of all the vouchers.

But am I right that I can't apply for a card in my sole name if I have no income?? I know I could apply for a joint card with DH but he doesn't really want/need another card...

I'm pretty sure I'm right but thought I'd check with MN, as someone always has the answer on here

OP posts:

VeryStressedMum · 01/11/2014 17:53

I applied under my name only I'm a sahm and got an m&s cc with a 4k limit. This was about 3 years ago.

Original poster

titchypumpkin · 01/11/2014 17:57

Thank you, that's interesting...

Anyone know how long a failed application would stay on my credit file if I tried applying? I'm not likely to need to apply for anything else anytime soon (just moved house).

OP posts:

Bearbehind · 01/11/2014 18:03

If you have no income you have no chance of a credit card in your own name- there's no point in applying as a credit search will stay on your file if you do try (I think it shows applications in the last 3 years but don't quote me on that)

scousadelic · 01/11/2014 18:10

I have a Tesco credit card which we got back in the days when they did a Platinum card with some extra perks if you earned above a certain amount. I was applying in my name and worked part-time so didn't earn much but DH earned well above their limit. When I asked about this card I was told no as I didn't earn enough but, if I told them I was a SAHP and didn't declare my income, I could get the card on the strength of his income. Go figure!

Bearbehind · 01/11/2014 18:25

But if you applied on the strength of your DH's income it was a joint application scousa - what's to 'go figure'? They granted credit on the basis your DH was responsible for it.

chipsandpeas · 01/11/2014 18:41

im sure most credit cards asks for household income

bearbehind - you cant get a joint credit card - you can be a 2nd card holder but not responsible for the debt

Bearbehind · 01/11/2014 18:44

You're quite right chips - sorry I worded that badly- what I meant was that the application wasn't made based on scousas income (I did say her DH was responsible for the debt) and the OP specifically stated her DH doesn't want to apply himself.

Original poster

titchypumpkin · 01/11/2014 20:01

Thank you for the replies everyone. I've looked at the credit card website (it's a john lewis card) and it says you need to have a "household income of more than £4,000 a year", so maybe like scous said I could apply in my name but put DH's income down at the household income??

OP posts:

Bearbehind · 01/11/2014 20:10

If you did that titchy the application would be in your husbands name and he'd be responsible for the debt.

Not a problem on the face of it, unless he doesn't want a credit check in his name.

You can't just take out credit in your name on the back of your partners income.

Original poster

titchypumpkin · 01/11/2014 20:50

Oooo, just applied online and been accepted?!

I put myself as houseperson and in the "help" section it said if you're a houseperson you then put your partner's job details, and it asked my partner's salary, but that's it, the card will be in my name.

But perhaps it will get bounced back at a later stage?! I'll report back!

OP posts:

Bearbehind · 01/11/2014 21:34

Blimey titchy I'm eating my words but if it does come through that's irresponsible lending at its finest - how do they even know it is definitely your husband and he does earn that much???

TalkinPeace · 01/11/2014 22:47

John Lewis card is interesting - I have one - they will look at your payment history above much else as they have LOTS of cardholders with no visible income

remember that the M&S card will be feeding in every month how much you spend, where and whether you pay off

your biggest problem will be if ever Partnership card got funny about those of us who pay off in full

BUT
my limit is 1/3 of my household income and I've paid no interest for years

you'll be fine OP

Original poster

titchypumpkin · 02/11/2014 15:12

I know bear it does seem crazy! Obviously in my case I am a sensible applicant but all it said was that I need DH's consent to put his job/salary down, but they don't check that I do, so I could secretly apply for a credit card without his knowledge, obviously the debt would be in my name so my responsibility, but it still seems odd.

It said I will get sent a credit agreement in the post to sign and send back and then will be sent my card. So I'll report back to update if it all goes smoothly or not. I won't be cancelling my M&S card until I know for sure!

Talkin that's interesting about payment history, as in theory I'm a bad applicant according to my payment history, as I've had the M&S card for 4 years, spent a lot on it (house renovation etc) but never paid a penny interest and raked in the M&S vouchers, so from M&S's point of view I'm not a great customer as I'm actually costing them money!

OP posts:

ilovepowerhoop · 02/11/2014 15:51

I got a Debenhams one last month and don't have an income of my own. I have a good credit rating as I have had credit cards/catalogues/loans in the past (and never had late/missed payments)

scousadelic · 02/11/2014 16:39

Bear I said 'go figure' because I did not see how I could get a platinum card with extra perks by declaring myself as not working and our household income as lower than if I declared myself as working part-time and having that extra bit of income. My application was just as titchy has said, DH did not have to sign and nothing was checked with him

It still seems odd to me

Bearbehind · 02/11/2014 16:43

Sorry scousa- I've had to eat my words on this thread

It is absolutely bonkers though.

You read about women who are SAHM and are being financially abused by their partners yet they could open and account like this without their partners consent (might be useful for some people to know that)???

Likewise, you could be divorcing and do the same- it's scary!

TalkinPeace · 02/11/2014 17:25

bear
your instincts are right
BUT
the credit agencies despite all the rules to the contrary do SERIOUS postcode checks
which will show that the SAHMs have loaded DPs

unlucky83 · 02/11/2014 17:43

I've had a credit card for years - paid it off in full every month etc. 7 yrs ago as a SAHM -pissed off with my credit card company - I changed and got one with Nationwide (who I bank with). It had a smaller limit (think £3k) previous one was more than £7k...(I increased it to pay for a kitchen online a few years before - wanted the extra protection you get paying by CC)... I pay for everything online with my CC as I feel it is 'safer' than using a debit card...
A couple of years ago we were in talking about investments and DP got a credit card of his own for the first time - and I was put on as 2nd signatory...
I was told as a SAHP I wouldn't be eligible for one then in my own name - even though I had up to the FSA guarantee (£80k) invested with them...and the young DCs had a similar amount on accounts I had control of.
That said if I had applied and been turned down I wouldn't have had that amount invested with them anymore!

Bearbehind · 02/11/2014 20:46

How do the postcode checks work talk?

My neighbour could be a millionaire (unlikely) or a bankrupt for all I know?

This thread has really surprised me- I just didn't think lenders could get away with such irresponsible lending anymore.

TalkinPeace · 02/11/2014 20:50

bear
the data that bods like experian hold is frankly scary
they tally every supermarket receipt against your credit card and every other item you buy on that card

I went to New York last week - I did not have to notify my card company as it was in my "pattern" - I checked

they tally all that you spend against all that you pay off
the public part of your credit file is just a fraction of what they know

Irresponsible lending is an utter misnomer.
They make more money if you do not pay off in full
so its in their interests to lend that little bit too much to people so interest starts clocking up

thatstoast · 02/11/2014 21:15

Talkinpeace, do you work in financial services? What specific experian product would John Lewis use to verify the OP's husband's income? Or are you implying that if she were a sahm in Chelsea rather than Tower Hamlets then they'd be more likely to grant credit? I agree with the latter (no offense to anyone in Chelsea or Tower Hamlets).

The information experian and other credit reference agencies have is extensive but most of it is non-specific and relates to patterns and trends. Also, I'd question whether it'd be used for something like a credit card which is relatively low risk. The checks would cost more than the anticipated bad debt.

TalkinPeace · 03/11/2014 11:46

its address and spending patterns that they use
loyalty card and credit card activity data linked to home postcodes is bought and sold all the time
they do not need to do "checks" - they are buying the data in bulk every month

thatstoast · 03/11/2014 20:10

Who do you mean when you say 'they'? John Lewis Financial Services?

Of course checks will be done. The Op will have been credit checked as part of her application. That has a basic cost, anything more indepth than that will have a further cost. I don't think the cost of checking that information is proportionate to the profit made by servicing the card.

I'm not saying that kind of information isn't available, just that it probably wouldn't have been used in this instance.

Original poster

titchypumpkin · 08/11/2014 18:38

Well I had the credit agreement through in the post so looks like I've been accepted...

OP posts:

thatstoast · 08/11/2014 21:34

Go and spend irresponsibly...that'll teach them!

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