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Moderator Emeritus
masdeocho
Posts: 2,050
Registered: ‎04-17-2007
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Re: Give a guy a break ...



TCarson wrote:

 

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



If P = the primary card holder, and A = the authorized user (daughter in college), then:
 
P's credit score does not change, PROVIDED that A and/or P don't run up a big balance.  P has to continue to pay all charges on time, whether A pays for them or reimburses P or whatever, otherwise P's score will be adversely affected.
 
A's credit score does change.  A inherits P's credit history, for better or for worse, from the past and into the future as long as A is an AU on P's account.
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Senior Contributor
ilovepizza
Posts: 3,071
Registered: ‎05-17-2007
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Re: Give a guy a break ...

If you lease or take a loan on any cars, make your kids co-signers. Keep in mind should you be 30 days late on a payment, you take them down for 7 years. But once paid off, they keep the installment for 10 years. Now that's a credit power boost.
If we never set higher goals we would never get as far.
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New Contributor
TCarson
Posts: 68
Registered: ‎05-12-2007
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Re: Give a guy a break ...

[ Edited ]


masdeocho wrote:
P's credit score does not change, PROVIDED that A and/or P don't run up a big balance.  P has to continue to pay all charges on time, whether A pays for them or reimburses P or whatever, otherwise P's score will be adversely affected.
 
A's credit score does change.  A inherits P's credit history, for better or for worse, from the past and into the future as long as A is an AU on P's account.


ilovepizza wrote:
If you lease or take a loan on any cars, make your kids co-signers. Keep in mind should you be 30 days late on a payment, you take them down for 7 years. But once paid off, they keep the installment for 10 years. Now that's a credit power boost.

  This is very constructive information and I thank you all for the input.

I told both of my Daughters early on that Credit is power and needs to be respected.
I also tried my best to instill that so long as they kept their GPA's up, I would reward them with a deserving education. Not a fancy car or a "Free Ride" (My eldest is 18 and has no interest in driving just yet), but a promise of the best education I can provide as long as they hold up their end.

They did their part  (3.7+ GPA's) so now its's time for me to make good on my promises.  It took me many, many extra years to get my degrees trying to work and go the school at the same time.
I wasn't as dedicated as my kids are, so I think they deserve it.

I'm only looking into ways to assist them if / when the deserve it, not spoon-feed them.

Thanks to all.


Message Edited by TCarson on 05-22-2007 11:13 PM

Starting Score: 724
Current Score: 797 (EQ)
Goal Score: 800

Moderator Emeritus
masdeocho
Posts: 2,050
Registered: ‎04-17-2007
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Re: Give a guy a break ...



TCarson wrote:


masdeocho wrote:
P's credit score does not change, PROVIDED that A and/or P don't run up a big balance.  P has to continue to pay all charges on time, whether A pays for them or reimburses P or whatever, otherwise P's score will be adversely affected.
 
A's credit score does change.  A inherits P's credit history, for better or for worse, from the past and into the future as long as A is an AU on P's account.


ilovepizza wrote:
If you lease or take a loan on any cars, make your kids co-signers. Keep in mind should you be 30 days late on a payment, you take them down for 7 years. But once paid off, they keep the installment for 10 years. Now that's a credit power boost.

  This is very constructive information and I thank you all for the input.

I told both of my Daughters early on that Credit is power and needs to be respected.
I also tried my best to instill that so long as they kept their GPA's up, I would reward them with a deserving education. Not a fancy car or a "Free Ride" (My eldest is 18 and has no interest in driving just yet), but a promise of the best education I can provide as long as they hold up their end.

They did their part  (3.7+ GPA's) so now its's time for me to make good on my promises.  It took me many, many extra years to get my degrees trying to work and go the school at the same time.
I wasn't as dedicated as my kids are, so I think they deserve it.

I'm only looking into ways to assist them if / when the deserve it, not spoon-feed them.

Thanks to all.


Message Edited by TCarson on 05-22-2007 11:13 PM

You're welcome!  And I bet many kids wish they had a parent like you. :smileyhappy:
 
Before you add an AU, get the bank (credit card issuer) to confirm that they will report the AU to the CRAs.  Not every credit card automatically does it.  (In the past, some would do it only for AUs who were spouses or children of the primary card holder.)
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Frequent Contributor
MercyMe
Posts: 429
Registered: ‎04-07-2007
0

Re: Give a guy a break ...

Good morning, Tuscani!  I trust your beautiful family is well!  Some of us are down with the flu.  Yuck!
 
For your general info, anyway, and thanks to all for the input, the  person I was referring to is a 78 year old woman who's been begging outside a home improvement center.  Her husband passed away a few years back, and the meager SSI she receives isn't enough to sustain her and their 49 year old son, who has been ill,  I don't know with what.  She lost the condo she and her husband shared,  a little while ago, and so the two of them, she and her son, are living in his car.  She has never worked, so has no credit/employment history.  Her husband was self employed and he paid all of the bills, and made no provisions for her.  She doesn't qualify for several different programs she has applied for, as her son is living with her, and she with him, and he doesn't qualify for SSI, at this time, though he has applied.  Follow through without an address and phone number is difficult, at best.  She won't separate herself from him, and he is all she has, she says.  That's the story, in a nut shell, anyway. She's unwilling to go into a homeless/rehab shelter that I am familiar with, and which has put many a homeless back into the mainstream.  She's afraid.  I thought that if she could obtain some sort of credit history, without the ability to use that credit, it might help her to establish herself.  That's all.  :smileyhappy: 
 
Have a great day, Tusc!  All! 
 
me
Moderator Emeritus
Tuscani
Posts: 6,182
Registered: ‎03-29-2007
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Re: Give a guy a break ...



MercyMe wrote:
Good morning, Tuscani!  I trust your beautiful family is well!  Some of us are down with the flu.  Yuck!
 
For your general info, anyway, and thanks to all for the input, the  person I was referring to is a 78 year old woman who's been begging outside a home improvement center.  Her husband passed away a few years back, and the meager SSI she receives isn't enough to sustain her and their 49 year old son, who has been ill,  I don't know with what.  She lost the condo she and her husband shared,  a little while ago, and so the two of them, she and her son, are living in his car.  She has never worked, so has no credit/employment history.  Her husband was self employed and he paid all of the bills, and made no provisions for her.  She doesn't qualify for several different programs she has applied for, as her son is living with her, and she with him, and he doesn't qualify for SSI, at this time, though he has applied.  Follow through without an address and phone number is difficult, at best.  She won't separate herself from him, and he is all she has, she says.  That's the story, in a nut shell, anyway. She's unwilling to go into a homeless/rehab shelter that I am familiar with, and which has put many a homeless back into the mainstream.  She's afraid.  I thought that if she could obtain some sort of credit history, without the ability to use that credit, it might help her to establish herself.  That's all.  :smileyhappy: 
 
Have a great day, Tusc!  All! 
 
me


Gotcha. This is an awful story. I can understand your wanting to help. But establishing credit won't help. I also find it hard to believe there no state programs to help. I think homeless\rehab shelter would be the best option. Any particular reason why she objects?
Super Contributor
MidnightVoice
Posts: 8,158
Registered: ‎03-25-2007
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Re: Give a guy a break ...



TheNewWorldMan wrote:
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. .

I have put my daughter as an AU and given her a card, but it is NOT for her to use.  It is for emergencies only, and I feel safer when she has that buffer.  She has not needed it yet
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
Frequent Contributor
MercyMe
Posts: 429
Registered: ‎04-07-2007
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Re: Give a guy a break ...

Good morning, Tuscani!  Why does she object?  She's afraid, in part.  All of the bad hype about  shelters, perhaps.  The Homeless Voice organization, however, is quite different.  I won't go into all that.  :smileyhappy:  Anyway, I think a lot of it has to do with her son, as well.  She's afraid of being separated from him, and that hinders her options as far as state assistance goes.  I'm not real sure what his whole story is; but her's is tragic, to be sure. 
 
I'm glad I brought this "before the board", before I did anything STUPID!!!!  Thanks, guys.
 
me
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MercyMe
Posts: 429
Registered: ‎04-07-2007
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Re: Give a guy a break ...

My daughter, too, established early (18) by taking out a low limit/dept. store credit card, which she almost always maxed out, but paid promptly. Since then, she's acquired 5 credit cards (over the course of 3 years) and an auto loan, all of which she has paid on time and the car, in full.  Her credit scores are in the 700s now.  :smileyhappy:  So though I didn't place her as an authorized user, I did advise her (and against having so many open tradelines) and she's done well for herself.  She, too, is still in school.  FAU.  She's a senior this year, on a full scholarship (though she has to pay for her books) and has been on the Dean's list the past two years, with a stable 4.0.  She's majoring in Elementary Education and just passed her Board of Review.  She works 30 something hours a week, besides.  Anyway,  I guess I have made her so credit conscience, that she boarders on paranoia, now.  :smileyhappy:  But, it will surely work to her advantage, huh?  Now, if I could only get her to clean her room.
Frequent Contributor
MercyMe
Posts: 429
Registered: ‎04-07-2007
0

Re: Give a guy a break ...

I'm with you, there, NewWorldMan! 

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