The Consumer Financial Protection Bureau (CFPB) recently proposed updates to the Credit Card Accountability Responsibility Disclosure Act (CARD Act) which would make it easier for stay-at-home spouses to quality for credit cards.
The CFPB’s proposed revision would allow credit card applicants who are 21 or older to rely on third-party income to which they have a reasonable expectation of access. Although the proposal applies to all applicants regardless of marital status, the CFPB said it expects that it will ease access to credit particularly for stay-at-home spouses or partners who have access to a working spouse’s or partner’s income.
CFPB Director Richard Cordray said in announcing the proposal that “When stay-at-home spouses or partners have the ability to make payments on a credit card, they should be able to obtain a card in their own name.”
CFPB said that data made available to it suggest that “some otherwise creditworthy individuals have been declined for credit card accounts under the current regulation, even though they have the ability to make the required payments. Discussions with industry sources indicate that a significant number of these individuals may be stay-at-home spouses or partners with access to income from an employed spouse or partner.”