starting over and son just turn 18

[Anonymous]

Hello I am starting over after many years of poor credit. I don't have any lines of credit at this time and was considering trying to get a secured loan from a local bank or credit union. My son just turned 18 this week and I thought that I should put him on the loan with me so that we could both benefit from it. Is that a bad idea since I have bad credit myself? As long as I make the payments early or on time then my past credit wouldn't negatively affext him would it?

Also if you are giving the bank money to secure the loan is there a chance you could still be denied? I would hate for him to start off that way.

[gdale6]

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@Anonymous wrote:

Hello I am starting over after many years of poor credit. I don't have any lines of credit at this time and was considering trying to get a secured loan from a local bank or credit union. My son just turned 18 this week and I thought that I should put him on the loan with me so that we could both benefit from it. Is that a bad idea since I have bad credit myself? As long as I make the payments early or on time then my past credit wouldn't negatively affext him would it?

Also if you are giving the bank money to secure the loan is there a chance you could still be denied? I would hate for him to start off that way.

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Your past credit wont affect him at all as long as he wasnt an AU on any CCs and if he was then he can dispute as not legally responsible for payment and get them removed. He needs to know that if you dont make the payments then he will be expected to that is what a co-signer or joint account holder does. If he is fine with this then I say go ahead with it but it would really be better if you just made him an AU on a credit card account that has no bad info in it to help him get started and let him get his own secured loan to build credit when he is ready to do so. Yes you can still be denied a secured card or loan depending on the banks policies. Welcome to the board

[stellar]

Not a good idea.  He should build credit on his own.  It will not be difficult for him to do so.

[CYBERSAM]

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@Anonymous wrote:

Hello I am starting over after many years of poor credit. I don't have any lines of credit at this time and was considering trying to get a secured loan from a local bank or credit union. My son just turned 18 this week and I thought that I should put him on the loan with me so that we could both benefit from it. Is that a bad idea since I have bad credit myself? As long as I make the payments early or on time then my past credit wouldn't negatively affext him would it?

Also if you are giving the bank money to secure the loan is there a chance you could still be denied? I would hate for him to start off that way.

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You may want to get a secure CC and that would do the trick till you clear your CR.

As far as your son's CR, all he needs is one CC. Secure or one from a local CU. With one card after 6 months, his credit score should be in mid 700 even with few hundred dollars CL.

[Anonymous]

Thank you all very much. I was hoping not to get a secured cc because I don't want him to close the acct and hurt his score. And at the same time I don't want to keep the money tied up forever either. I was thinking going the secured loan route since the money would be given back after it's paid off and the loan money is there in the interim if needed for anything or to make the payments with. 

Also as far as getting him a separate acct I don't really have the money at this time to do both so I was hoping to kill two birds with one stone. But it seems as though maybe I should get one fro him first and then concentrate on mine after.

[stellar]

If he's new to credit, he may qualify for a capital one card or a store card.  He may not need a secured card.