A few months ago, Mr. Money had issues with his Capital One credit card where they kept charging him a $39 annual fee. While we’re thankful to be done with them because of the horrible customer service we’ve received, we are also facing a problem. Mr. Money doesn’t have any credit cards on his credit report now.
The only credit cards we have are our National City Everyday Rewards and a Home Depot credit card that we used to purchase our appliances. I have a card and Mr. Money is an authorized user as well on both accounts. He’s got his own card so he can access the accounts, but the payments are not showing up on his credit report. I’m a little concerned about his credit score being negatively affected because he has no revolving lines of credit on his credit report. These are the options we’re considering: opening up a credit card in just Mr. Money’s name, or closing out my National City credit card and applying for a joint one.
If we open a credit card in Mr. Money’s name, that’s one more credit card we have to keep an eye on. His credit score will likely go down a few points as a result of an inquiry for credit. We’ll have to make sure we are using the card every once in awhile to make sure that it stays active and doesn’t get closed. Do I really want another account to take care of? I’m not so sure.
If we close out my National City card, then my credit score will probably take a hit for the inquiry, not to mention that card has been open since 2004 and that’s a positive reflection on my credit report. Since I still am so young, it’s a good idea to have that on there. Also, showing a new credit card open may not be the best thing either. Decisions, decisions.
What would you do? Don’t worry about it, open one in Mr. Money’s name, or close out my personal one and apply for a joint?