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nekosun
Posts: 10
Registered: ‎02-09-2011
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Re: Parents have Credit Cards in my name screwing my Credit Score

[ Edited ]

They signed bankruptcy, couldn't get any loans for purchasing a mobile home, so they opened cards in my name. They did it because it was "the best for the family". And I did live in that mobile home  while I was in school! They are NOT evil: they don't charge cards anymore (moreover, my dad cut the cards himself! after we talked), they do pay monthly in time, but minimums only - and it will take years to pay the debt off. It frustrates me that them not being able to manage their finances is effecting my family's future now. I am looking for a legal way to get rid of those cards. They are willing to put their name for those cards instead of mine, but non of us knows how. I hope it cleared the situation... I love my parents, they try to be good, but don't try well enough. Do you have any advices how to "rename" the debts, or transfer, or sell, whatever?

Senior Contributor
O6
Posts: 3,626
Registered: ‎10-13-2009
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Re: Parents have Credit Cards in my name screwing my Credit Score


nekosun wrote:

They signed bankruptcy, couldn't get any loans for purchasing a mobile home, so they opened cards in my name. They did it because it was "the best for the family". And I did live in that mobile home  while I was in school! They are NOT evil: they don't charge cards anymore (moreover, my dad cut the cards himself! after we talked), they do pay monthly in time, but minimums only - and it will take years to pay the debt off. It frustrates me that them not being able to manage their finances is effecting my family's future now. I am looking for a legal way to get rid of those cards. They are willing to put their name for those cards instead of mine, but non of us knows how. I hope it cleared the situation... I love my parents, they try to be good, but don't try well enough. Do you have any advices how to "rename" the debts, or transfer, or sell, whatever?


It's good to see that the only problem here may just be time.

 

From what you've stated, to even begin to claim the debt as not yours would entail fraud on your part.  You knew what was happening and that pretty much means you explicitly approved.  Do not get yourself into a bigger mess by trying to tell the credit card companies you are a victim of ID theft.

 

The only way to get these debts out of your name and into your parents' name is with the actual cooperation of the creditor.  If the creditor feels your parents are a good credit risk, they may let you do something similar to adding them as co-applicants and then removing you from the account.  Likely what the creditor will tell you is to let them apply on their own and if approved the debt can be transferred.  Unless you are thinking about personal bankruptcy, I see no other way.

 

In a perfect world this would not be happening, but, as you stated, they are your parents and they do love you.  Sometimes for all the right reasons the results come out wrong. 

 

One thing I would be remiss not to suggest is that, crass as it sounds, you should make sure your parents have enough life insurance.  If, heaven forbid, something were to happen then you are still stuck with the debt and then your situation would be more precarious -- high debt with reduced income with which to pay it. 

IAALBNYL
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IOBA
Posts: 2,681
Registered: ‎08-13-2009
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Re: Parents have Credit Cards in my name screwing my Credit Score

I want to say I had a similar situation, but it's not quite the same.  I voluntarily loaned my parents one of my cc, with a 2k limit.  It was for a specific purpose - to move with.

 

They quickly ran up the debt and started making payments on the card.  

 

I think I asked for the card back, now that they were done with it, but it somehow never made it back to me.

 

They made payments.  The address on the card was changed to their address so they could receive the statements and pay.

 

They missed a few payments.   The cc sent out a demand payment letter.  My parents not realizing the letter was from the cc, forwarded to it me.  When I called to ask about the cc and payments, my mother was "Shocked" that I could even think she wouldn't make the payments!   I said I have the letters from the cc - and I called them to find out what was going on.  She then admitted she had missed only "one" payment.  (Not true, but not going ot argue it, ya know.)

 

Long story short, 7 yrs later, they are still making payments.  The cc closed the account because of the missed payments (several more happened).

 

When my mom found out that the card was closed, she decided she didn't need to make payments.  I read her the riot act in a very calm voice and explained her actions had a DIRECT effect on me, my housing, my banking, my ability to feed and to clothe her grandson, and potential employment.   I asked her to call up the cc and ask for a pymt plan.  Explained the process to her.  

 

She's making the payments now. 

 

It still galls me that she has all the cash in the account to pay off the bill RIGHT now but refuses to!   The card is closed, so no more charges can go on it.   Potential credit score damage cuz she might miss a payment.  I did tell her (heheehe) that if she was on a pymt plan that the cc would direct debit the money from her account every month and she wouldn't have a choice.   She told them she didn't like their policy but would accept it.  So they do that now.

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haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007
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Re: Parents have Credit Cards in my name screwing my Credit Score

 


nekosun wrote:

They signed bankruptcy, couldn't get any loans for purchasing a mobile home, so they opened cards in my name. They did it because it was "the best for the family". And I did live in that mobile home  while I was in school! They are NOT evil: they don't charge cards anymore (moreover, my dad cut the cards himself! after we talked), they do pay monthly in time, but minimums only - and it will take years to pay the debt off. It frustrates me that them not being able to manage their finances is effecting my family's future now. I am looking for a legal way to get rid of those cards. They are willing to put their name for those cards instead of mine, but non of us knows how. I hope it cleared the situation... I love my parents, they try to be good, but don't try well enough. Do you have any advices how to "rename" the debts, or transfer, or sell, whatever?


 

It's very admirable that you want to help your family. It looks like you got them through a tight spot, and now it's blown up on you.

 

I would go with O6's advice. I doubt that the lenders will take you off the cards. Generally, if someone wants to do this, the new person (your parents, in this case) would have to qualify on their own, and it doesn't sound like they're there yet.

 

For your sanity's sake, you might have consider this a gift to your parents that might never be fully repaid. Maybe they can make minimum payments to you, while you make payments on the cards. At least you'll know that they're being paid in a timely manner, and you can be reimbursed, at least partially.

 

This is one of the things that can happen when we try to help family (and friends) by essentially taking on their credit. Unfortunately, all that lenders care about is the person who applied for the CC, and that's who they'll go after. You, in this case.  :smileysad:

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
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beamMEup
Posts: 4,473
Registered: ‎12-31-2008
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Re: Parents have Credit Cards in my name screwing my Credit Score


haulingthescoreup wrote:

 

It's very admirable that you want to help your family. It looks like you got them through a tight spot, and now it's blown up on you.

 

I would go with O6's advice. I doubt that the lenders will take you off the cards. Generally, if someone wants to do this, the new person (your parents, in this case) would have to qualify on their own, and it doesn't sound like they're there yet.

 

For your sanity's sake, you might have consider this a gift to your parents that might never be fully repaid. Maybe they can make minimum payments to you, while you make payments on the cards. At least you'll know that they're being paid in a timely manner, and you can be reimbursed, at least partially.

 

This is one of the things that can happen when we try to help family (and friends) by essentially taking on their credit. Unfortunately, all that lenders care about is the person who applied for the CC, and that's who they'll go after. You, in this case.  :smileysad:


Well put, HTSU. 

Just puttin' syrup on something, don't make it pancakes.
Senior Contributor
O6
Posts: 3,626
Registered: ‎10-13-2009
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Re: Parents have Credit Cards in my name screwing my Credit Score


haulingthescoreup wrote:

 


nekosun wrote:

They signed bankruptcy, couldn't get any loans for purchasing a mobile home, so they opened cards in my name. They did it because it was "the best for the family". And I did live in that mobile home  while I was in school! They are NOT evil: they don't charge cards anymore (moreover, my dad cut the cards himself! after we talked), they do pay monthly in time, but minimums only - and it will take years to pay the debt off. It frustrates me that them not being able to manage their finances is effecting my family's future now. I am looking for a legal way to get rid of those cards. They are willing to put their name for those cards instead of mine, but non of us knows how. I hope it cleared the situation... I love my parents, they try to be good, but don't try well enough. Do you have any advices how to "rename" the debts, or transfer, or sell, whatever?


 

It's very admirable that you want to help your family. It looks like you got them through a tight spot, and now it's blown up on you.

 

I would go with O6's advice. I doubt that the lenders will take you off the cards. Generally, if someone wants to do this, the new person (your parents, in this case) would have to qualify on their own, and it doesn't sound like they're there yet.

 

For your sanity's sake, you might have consider this a gift to your parents that might never be fully repaid. Maybe they can make minimum payments to you, while you make payments on the cards. At least you'll know that they're being paid in a timely manner, and you can be reimbursed, at least partially.

 

This is one of the things that can happen when we try to help family (and friends) by essentially taking on their credit. Unfortunately, all that lenders care about is the person who applied for the CC, and that's who they'll go after. You, in this case.  :smileysad:


+2

 

I wish I had your finesse and way with words.  :smileyhappy:

IAALBNYL
Member
nekosun
Posts: 10
Registered: ‎02-09-2011
0

Re: Parents have Credit Cards in my name screwing my Credit Score

 

Thank you everyone for your experience, support and advises. Might sound childish, but knowing that you are not alone - people are stuck in the same situation, and getting support from others - helps :smileyhappy: 

 

And exceptional thank to O6 for: "The only way to get these debts out of your name and into your parents' name is with the actual cooperation of the creditor.  If the creditor feels your parents are a good credit risk, they may let you do something similar to adding them as co-applicants and then removing you from the account.  Likely what the creditor will tell you is to let them apply on their own and if approved the debt can be transferred.  Unless you are thinking about personal bankruptcy, I see no other way."

 

I tried to negotiate with the creditors, but if you are a primary account holder, than there is no way to get out of it. Actually, they suggested the same - to open parents' own account and transfer the money. Glad to say, my parents agreed to do so, and as for now my debt is 3k less. Even though it is about 1/10 of the total revolving debt, I feel much better because my parents did at least something to help me out. And promised to pay extra "as much as they can". 

 

So, if someone is in the similar situation, know that there is no way out, and you are very much stuck with it - doesn't matter how it happened, you are responsible as a primary account holder anyways. And of course, don’t get under this yoke by your own choice opening an account co-signing as a PRIMARY holder for anyone. Never know what future holds...

 

Thanks again for all your help! And hope that people reading this will learn a lesson 

Senior Contributor
O6
Posts: 3,626
Registered: ‎10-13-2009
0

Re: Parents have Credit Cards in my name screwing my Credit Score

Great to hear that there is improvement!  Before you know it, the debt will be a thing of the past.

 

Actually, though, in a sense you are very lucky.  Not everybody in situations like this have parents that are as decent as yours and willing to work towards a positive outcome. 

IAALBNYL
Regular Contributor
Comet21
Posts: 204
Registered: ‎08-29-2007
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Re: Parents have Credit Cards in my name screwing my Credit Score

I had this happen to me. It is not that you allow your parents to do so, but who else has all of your information? Your parents can do whatever they want with your SSN. I looked at as a gift once I graduated from college and was working. I tried disputing but that will not work. I spoke with the CC on a number of occasions. Nowhere on record have they ever spoken with me, but they always asked do I know (Insert Mom)? To rebuild me credit I started slowly with Orchard Bank and Capital One. Then I was able to get a Peach Direct Merchandise Card. Then when I get married, my wife added me as an autherized user on all of her accounts. So from December 2005 to December 2007 my score jumped 200+ points. Long process but in December of 2007 I was able to get financed for a BMW(For My Wife) by myself and I qualified for a BMW CC during the purchase. We also purchased a home in March of 2008. I say all of that to tell you that I understand where you are coming from and you can recover from this. Make sure there are NO LATE PAYMENTS going forward.

 

Since then I qualified for an SBA Loan for a business I started, and I had to close the business. So I now have to start over in my Credit Building.


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cassembler
Posts: 470
Registered: ‎02-07-2011
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Re: Parents have Credit Cards in my name screwing my Credit Score


haulingthescoreup wrote:

 

For your sanity's sake, you might have consider this a gift to your parents that might never be fully repaid.


+1

 

The relationship sound like it's worth more than $X.

"Credit is purely a cash flow tool. Thinking of credit as extra money you didn't have before makes it an EXPENSIVE cash flow tool."

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