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Frequent Contributor
MercyMe
Posts: 429
Registered: ‎04-07-2007
0

Give a guy a break ...

So, Tuscani, Noah_bodie, LadyFico, anybody ...  what harm/risk would there be in adding say,  a homeless person (such as the struggling head of a family)  to your lowest/best credit account, without actually giving him/her the ability or opportunity to use it?  Would this not establish credit for them, making it easier to rent places to live and purchase used vehicles?  And say one were to do this, how long would it take that person to go from say, 300 to 600?
 
Thanks in advance!
 
me
Moderator Emeritus
Tuscani
Posts: 6,182
Registered: ‎03-29-2007
0

Re: Give a guy a break ...



MercyMe wrote:
So, Tuscani, Noah_bodie, LadyFico, anybody ...  what harm/risk would there be in adding say,  a homeless person (such as the struggling head of a family)  to your lowest/best credit account, without actually giving him/her the ability or opportunity to use it?  Would this not establish credit for them, making it easier to rent places to live and purchase used vehicles?  And say one were to do this, how long would it take that person to go from say, 300 to 600?
 
Thanks in advance!
 
me



LOL.. even an 800 FICO can't employ you or pay the bills. :smileyhappy:
Senior Contributor
ilovepizza
Posts: 3,071
Registered: ‎05-17-2007
0

Re: Give a guy a break ...

But they would have a great FICO score. lol. And the ability to call your credit card company and request changes and a replacement card mailed to them.
If we never set higher goals we would never get as far.
sol, credit 101, acr, abbreviations, calc
New Contributor
TCarson
Posts: 74
Registered: ‎05-12-2007
0

Re: Give a guy a break ...

[ Edited ]

I was wondering the same thing, but a different way.
Suppose I want to help one of my daughters start her credit life
She's 18, just graduated High School and getting ready to start 10 years of College.
I very much doubt she will have time to work for at least the next 4 years, so I will be paying her bills.
 
If I add her to a couple of my Credit Cards as a user, won't that help her establish real credit?
I don't necessarily have to give an actual card; just add her as a valid user.

 

(Edit: Corrected spelling/grammer mistake)



Message Edited by TCarson on 05-22-2007 03:11 PM

Starting Score: 05/12/2007 724 average on all 3
Current Score: 12/15/2014 788(EX) 790(EF) 788(TU) and climbing...
Goal Score: >800 on all 3

Super Contributor
MidnightVoice
Posts: 8,160
Registered: ‎03-25-2007
0

Re: Give a guy a break ...

Daughters are money pits.  :smileyvery-happy:
 
BTW - that ten years of college will probably cost more than double the amount you have so carefully calculated  :smileyvery-happy:
The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid
New Contributor
TCarson
Posts: 74
Registered: ‎05-12-2007
0

Re: Give a guy a break ...



MidnightVoice wrote:
Daughters are money pits.  :smileyvery-happy:
 
BTW - that ten years of college will probably cost more than double the amount you have so carefully calculated  :smileyvery-happy:


I figure I'll pay the first four years, then give her the deed to a house in Texas.
From that she can borrow the rest on deferred student loans on her own while I work on Daughter #2's future.(Maybe look for her to get a four year degree and marry well :smileywink: )
 
I'm just thinking how I can help her get good loan values when it's time for her to start borrowing to pay for this education.

Starting Score: 05/12/2007 724 average on all 3
Current Score: 12/15/2014 788(EX) 790(EF) 788(TU) and climbing...
Goal Score: >800 on all 3

Super Contributor
MidnightVoice
Posts: 8,160
Registered: ‎03-25-2007
0

Re: Give a guy a break ...



TCarson wrote:

 
I'm just thinking how I can help her get good loan values when it's time for her to start borrowing to pay for this education.


A lot of the standard student loans are for a very low rate for a very long time, and pretty independant of the child's credit rating, as they have no credit rating.  Then at the end they can be consolidated at a good rate etc.  Much of it is fixed - especially the loans one can get via the standard Federal Aid program.
The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid
New Contributor
TCarson
Posts: 74
Registered: ‎05-12-2007
0

Re: Give a guy a break ...



MidnightVoice wrote:
A lot of the standard student loans are for a very low rate for a very long time, and pretty independant of the child's credit rating, as they have no credit rating.  Then at the end they can be consolidated at a good rate etc.  Much of it is fixed - especially the loans one can get via the standard Federal Aid program.


Good advise.
 
I only wish FAFSA would be a bit more realistic about the costs of living when they factor who qualifies for Student Aid. I don't think they compensate for what it costs to live in NorCal verses most (not all) other places. Housing here is more than 5x what it is in East Texas, but salaries are only about 20% higher.


 

Getting back OT, is there any effect on the credit score of someone added to an existing credit-card account?


 

Starting Score: 05/12/2007 724 average on all 3
Current Score: 12/15/2014 788(EX) 790(EF) 788(TU) and climbing...
Goal Score: >800 on all 3

Established Member
Momof5
Posts: 57
Registered: ‎05-22-2007
0

Re: Give a guy a break ...

I have a DD who is 21, DS 20, DS 19, DD 17 and DD14....whew....
 
Anyway, DD was a college student and we got her a BoA acct.  The gave her the BoA student visa w/$500 limit.  So if your child is in college they can get their own credit started.  BE VERY CAREFUL HERE!!!!  So many  posts I read on CIC or CB are about college kids who get the cards, max them out and then default.  This is such a risk, especially if they don't have an income!
DD has now graduated to that plus a Victoria's Secret card and recently a USAA MC with a $5000 limit.  (Uh, that is because she joined the Army. :smileyhappy:.... she is a combat medic and is currently finishing her nursing degree courtesy of Uncle Sam!)
 
DS1 started his credit life in the Army as well with a Military Star card.  He is now having the adult joy of running out of money before he runs out of month! (However, deployment will change that....all that extraneous pay...)
 
DS2 still has no credit, and god love the child/man, he needs to grow up before he gets any.
 
DD2  I made her an AU on my Target Visa ($5000 CL) which will begin her credit life.  Why?  She like DD1 is an honor student.  She completed her first AP class as a Junior.  Next year 3 AP classes and a couple of college courses as a HS SR.  She is also a soccer star.  She will be heading to England (Manchester) to compete there in July.  The AU was so that she could have it there and not have to carry cash.  [The nice thing about living in FL....she will have tuition paid at state schools!  In addition, we have already begun receiving recruiting letters from colleges for soccer!]
DD3....well, I have a few years before I have to think about her!
 
I teach all my kids about credit, it's use and FICO scoring.  I teach them about budgeting.  Better from Mom than CAs!!!

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Valued Contributor
TheNewWorldMan
Posts: 2,374
Registered: ‎03-15-2007
0

Re: Give a guy a break ...

I don't intend to list my daughter as an AU when she comes of age just to get her credit score up.

A kid's first CC shouldn't have a $5000 limit, and the car they learn to drive in shouldn't be a Maserati, for the same reasons: way too much too soon. My daughter can start out with two CCs in the $200 to $500 limit range, and earn her way to higher limits from there. If she avoids baddies, and uses the credit-building techniques I'll teach her in a few years, no reason she shouldn't have $2000 cards by the time she graduates from college, and $5000 CLs and a 750 FICO by the end of grad school. By then, she'll have the financial experience to handle that horsepower without wrapping herself around a telephone pole.
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