Credit Cards

Dear Liz: My husband was the primary account holder on our credit cards and I was the authorized user. When he recently passed away, I was told I had to close the cards. I have tried to open my own credit cards and have been declined by two banks because my debt is too high. I am the co-signer for my two daughters’ mortgages, making it look like I owe more than $1 million. My daughters have always made the monthly payments and have done so for six years. I also have almost $1 million in investments. I told the bankers I could bring in these documents as proof I’m credit card worthy and they said they don’t look at outside evidence, only the credit reports. So here I am, in my 60s without a credit card. Should I just settle and be an authorized user on my daughters’ cards? What can I do?

Answer: Thank you for providing another vivid example of why it’s important for each spouse to have one or two credit cards in their own names. Many people don’t realize that credit cards typically aren’t jointly held, and the death of the primary account holder can leave them cut off from credit.

Being added as an authorized user to your daughters’ cards is a good first step. You also might consider approaching a credit union, since these member-owned financial institutions are often more flexible about granting credit than the typical big bank.

Unfortunately, these mortgages will continue to affect your debt-to-income ratio until they’re paid off or your daughters refinance — and given the low rate they presumably got, refinancing is not likely to be an attractive solution.