No credit for over 7 years...should I apply for a card?

[MountainTown]

Hi,

I was a staunch non-borrower for awhile. I am now being persuaded by the travel hacking. I have experimented with my wife as she had credit(I recently paid off all her debt) and to preserve it I asked her to open a Delta CC. It worked out good. We didn't hack hardcore but we got a couple free flights home, free bags, etc. Now we are considering an upgrade as they offer travel companion fares.

In the past I didn't fool with my credit as we were considering buying a house. I have decided to put that on hold for at least 6 to 12 months. Even if we did buy in that timeframe, I have basically been told that despite no debt in my name, despite making $78k a year, despite no negative credit...they will not give me a mortgage. I went to another lender and experienced the same thing. We can put it in her name and so I am not too concerned as it will just make us buy a cheaper house--probably a good thing!

My question is since I am in the clear on credit...how should I start? Should I go ahead and apply for the promotional Delta card(offers 60k miles start up)? My concern is that if I get denied....it will negatively impact my credit. I also don't know...is it a surety I will get denied? Again, no credit history for 7-10 years...but no negative marks anywhere.

My other, easier option is to just have her add me on her CC. This looks like it won't be a problem but of course I miss out on that 60k miles bonus...

Any help is appreciated.

[extremedefense]

I'm confused, why wouldn't they approve you for a mortgage?

[samsonator54321]

From what I've read I don't think applying and getting rejected will hurt your credit much.  Here is some info that may help https://www.nerdwallet.com/blog/finance/multiple-credit-card-applications-hurt-credit-score/

If you have trouble getting accepted go to a small credit union and get a card. This is what I did at 18. They gave me a 500 limit and I built it up from there.

[MountainTown]

Hey extreme:

Basically the way the mortgage industry works is they setup a mortgage with ya and then sell it as a packager later to investors. Even though Fannie mae allows it, investors just don't like to see no credit scores. If they won't buy 'em, your lender won't lend to you. There are probably exceptions out there and DR touts them. I do believe it's state by state. One time I called Churchill mortgage(DR says that they will do manual underwriting). They told me they can't do it in my state. Go figure.

Samsonator: Thanks...I'll check that out. And I don't think I would need to get a secured credit card but thanks. Thinking I should just go on her card as a cardholder.

[Another Reader]

The authorized user is the best way to start.  Also talk to your bank.  They may be able to give you a card.  Might not be the fancy rewards card, but you have to start somewhere.

[MountainTown]

AR...when you say "best way to start"....does that mean you think I would get denied credit?

Seems like best way to start (if I could) would be to sign up with a bonus card. But maybe you are saying that's most likely not possible??

[Another Reader]

It's possible.  That's why I would be conservative and nose around before I used up a hard pull on your credit.  If you do this right, in a year, you will have a high credit score and enough history to please Fannie and Freddie.  More money saved and a clearer direction about your future kids.  Win-win.

[Catbert]

Do you have a credit score?  Or is it a low one?  If no score, I would predict that you won't get approved for a rewards card.  As someone else mentioned, try going to your credit union or somewhere else that you currently have a relationship with and talk to them about a beginner card.  If all else fails get a secured card where you put money on deposit and in turn they give you a cc with the same limit. 

Also get you wife to add you as an AU to any cards she has which will give you the history on those cards.  A denial of a cc isn't going to do much to your credit   - a hard pull will cost you a few points (e.g., 6) but it fades over time.