I recently learned that one of my department store credit card’s was listed differently on my credit report. Instead of a “revolving account” it’s listed as a “charge account.” Credit bureaus like to see various forms of credit on your credit history. Being offered various types of loans must signal credit worthiness. Therefore, having not only revolving accounts, installment accounts, but charge accounts that are in good standing can boost a credit score.
Yet, my husband was dismayed to find out that this credit account wasn’t listed on his report though he holds a card as well. Turns out he is just an additional card holder, not a joint account holder. Since his credit report seems to be a bit thin and missing various credit types, this could help him boost his score as well. Thankfully, we were able to request he be added as a “joint” holder (though through marriage even if he wasn’t a joint holder he is still equally responsible for the debt). By adding him and charging and paying off small amounts to the card, it should improve his score and overall account type “grade”. I like to use CreditKarma.com to quickly check my score every few months. They include grades for length of history, balance due compared to available balance, and types of credit accounts as well as a few other variables. The higher the “grade” on the variables, the higher the overall Transunion credit score.
I’ll post an update on this in a few months time as it will be interesting to see how many points are added to his score.
Have you strategized your credit accounts to boost your credit score?
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For our main card, my wife and I each have our own. The reason being is because there’s an annual cash back limit that we’d probably hit if we both worked off one account. As it stands, we can earn potentially double the rewards.
Money Beagle recently posted..How To Always Know What’s Going On In Your Office
That is pretty interesting! Never realized the distinction actually affected your credit!
MoneyCone recently posted..Confessions of a Lazy Blogger
We merged everything when we got married but we kept each other as the primary account holders which should help us both boost our credit rating.
Miss T @ Prairie Eco-Thrifter recently posted..Skip the Gym, Sweat at Home 4
Important information. Having worked in credit and lending and personally reviewed thousands of credit reports I was not aware of this. Thanks for expanding my knowledge! I think I’ll review my own credit report tonight to see how balanced we are.
Hunter – Financially Consumed recently posted..Credit Card Ride To New Beginnings
My wife and I do not hold any joint accounts. We have totally separate credit profiles. We hold joint title to the assets only. When I was repairing my wife’s credit from a family member stealing her identity I allowed her to be an authorized user. This allowed her to get the benefits of my good credit history with that particular credit card and none of the risk.
YFS recently posted..IS RAISING A DOG LIKE RAISING A CHILD?
@Money Beagle – That’s a good point. I’ll have to look into that with my two primary credit cards.
@Money Cone – We didn’t either until we noticed that the department store card wasn’t showing up on his report, only on mine. The different type of credit account boosted my score and we’re predicting it will do the same to his.
@Miss T – That was an excellent idea. Both of your credit reports should be reporting the same accounts.
@YFS – That’s a good point. If you know your spouse has crummy credit, then you don’t want them to be “joint” account holders – or at least I wouldn’t think you would. At least you were able to help her improve her credit by authorizing her as a signer on one account.
Is it free to check your score there? I don’t wanna purchase anything
Aaron Hung recently posted..Home buying: For the first time buyers
@Aaron Hung – CreditKarma.com is free. However, it only checks the Transunion score. It’s also considered a “soft” pull each time you check your score through them.