When my wife decided to stay at home full time with our kids, we combined our finances to make things easier to manage. Since we were living on one paycheque, it didn’t make sense to keep multiple bank accounts open under both our names.
However it’s a good idea for stay at home parents to continue building credit history, even if he or she is unlikely to return to work.
Here are three tips to keep credit history for stay at home parents:
Keep One Credit Card In Your Name: Even if you prefer to use one credit card for the majority of your household spending, keeping a different credit card in your name will continue to build your credit history.
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My wife still has a credit card in her name from before we got married and we have it set up to pay for a small monthly subscription to keep the account active.
It’s easier to keep an existing credit card account active under your name than to try and re-apply for one down the road when you have no income.
Keep Building Your Credit Rating: In addition to keeping one credit card in your name, stay at home parents should look at other ways to build their credit rating. In my wife’s case, she also has a cell phone account under her name.
In order to keep building your credit rating, you need to make sure to pay your bills on time. The longer your history of on time payments, the better your credit rating will be. One missed payment can hurt your score if you aren’t careful. If your working spouse pays all of the bills, make sure they don’t forget about the accounts under your name.
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Consider a Separate Bank Account: Single income families are more likely to combine finances and move to a joint bank account. When my wife stopped working we closed her chequing account and opened a joint account. We were paying bank fees at the time, so it made sense to merge our accounts into one.
After using a joint account for a many years I can see the advantages of keeping separate bank accounts. Just because your spouse isn’t working, doesn’t mean he or she shouldn’t have their own spending money.
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Having your own bank account will at least give your spouse some financial independence and allow them to pay bills and access cash if needed.
For stay at home parents, maintaining your credit history may seem like an afterthought, but it is important.
Consider this the next time you apply jointly for a mortgage or a car loan. If your working spouse passes away, their credit history will go with them and you will no longer be able to get by on their good credit alone.
With more than 70 travel rewards credit cards available to Canadians, it’s hard to get excited when a new card gets introduced.
However, Scotiabank’s new line of American Express cards should capture the attention of travel rewards enthusiasts across the country. Of the three new cards issued, the Scotiabank Gold American Express card is the best of the bunch.
Scotiabank Gold American Express
With the Scotiabank Gold American Express card, you’ll earn four points for every dollar spent on groceries, gas, dining and entertainment. It comes with a $99 annual fee, but you’ll get 20,000 bonus points with your first purchase – worth $200 in travel rewards.
You can purchase travel on your card from any travel provider – not just through the Scotia rewards travel centre – and you can redeem points for a complete trip, including taxes and surcharges.
The flexibility and high earning potential make this card one of the best on the market today, comparable to the TD First Class Visa Infinite and the BMO World Elite MasterCard, but ranking slightly behind the Capital One Aspire Travel World MasterCard for the top travel rewards credit cards in Canada.
A couple of features really stand out with the Scotiabank Gold American Express card.
First is the chance to earn four times points, not only on groceries and gas, but also on dining and entertainment. If you spend a lot on dining and entertainment, a card like this can come in handy for everyday use.
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You also have up to 12 months to redeem your eligible travel-related purchases for points. That means you can enjoy your vacation now and still apply points toward your travel purchases up to a year later.
While there’s a lot to like about this card, there are some drawbacks to using it as your primary credit card.
You’ll only get one point for every dollar spent on travel, so if you spend a lot in this category, as many business people do, you’ll miss out on higher earnings you get with other top travel rewards credit cards.
Another downside with American Express cards is that they’re not as widely accepted as Visa and MasterCard, which can be frustrating when you’re trying to maximize your points.
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That’s why it’s a good idea to carry three credit cards – a Visa, MasterCard and American Express – so you can take full advantage of the benefits of each card.
Whether you’re in the market for a top travel rewards card, or considering a rewards card for everyday use, Scotiabank’s Gold American Express is a competitive card that’s worth a look.