How to build credit history for my wife?

[Cam]

I have good credit with fico score just under 800. I recently got married and my new wife just got a SSN and has no credit (she doesn’t have bad credit but just has no credit history at all).

We are going to start to build her credit with a credit card for her and buying and paying off full amount each month. My question is, If I cosign now for an auto lease for her will I still be able to demand the best interest rates/terms because of my good credit or will her lack of credit mean I wont be able to get the best deal for her and will it be her credit that determines the terms and interest rate etc.? (I would normally never give a down payment for an auto lease for myself, will I be forced to if I’m cosigning to help her with her being the primary leasee).

2nd question is: If I cosign an auto lease for her will that relationship of our SSN together on this lease and her lack of credit trigger a negative effect to my on going credit score, and lets say in 4-6 months when I need to get a personal loan for my business equipment will my credit score be lowered because of her lack of credit. And would a future home purchase (in 1 to 2 years down the line) be affected because of this possible lower fico score that I might get because of my wife? What’s my best move here?

Thank you

[Tracy Winters]

Re: How to build credit history for my wife

You should be able to get good terms if you co-sign for your wife (as opposed to co-signing to someone else). There are no rules here. It depends on the leasing company.

Credit reports and scores are personal. Your wife’s credit report and score is totally separated from yours. They do not blend or impact one each other (See marriage-and-credit-scores.html for more information).

However, debt associated with joint account appears on both credit report, and is factored in both of your debt-to-income ratio. This may sometimes reduce your ability to apply for new credit.

If you want to build good credit for your wife, adding a credit card in addition to the car lease would certainly help. Naturally, you will have to co-sign on the credit card as well (if she doesn’t qualify – get her a secured credit card). It’s better than adding her as an authorized user to your credit card. Remember that it take at least two years to build a good credit score.

Good luck

[Author]

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