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How my CR & Score help my friend's debt?

Not applicable

How my CR & Score help my friend's debt?

I have a friend who has 5 ccs with total of about 12k bl, and APR is around 25% ~ 30%.

The lowest is Target card with bl of $500 and paying the $25/mo, which pays half to the bl and half to the interest and the bl does not go down any sooner.  The highest is Cap1 with bl of 5k.


I offered him to let me PIF on the Target cc and pay me $25 instead, since it is only $500.  But he didn't accept my offer and he wants to take care of it himself.

He also has Auto (26k) and Student Loan (?) debt.  And there are any funds left after pay for the all bills.


Ok, I've reading the BK and consolidation thread.  He does not want to file a BK.   I hope he can get help with CU to consolidate the 5 ccs debt at least.

Now, I start to wondering how does my CR & score will help him if I add him on my ccs as AU ... total of 9 ccs.  I have no buddies and out standing CR & score with  high 700's ~ 800's.  * FICO EQ was 810 in Sep 10' before I app for Addison VISA.  They pulled EQ on me.  I'm not sure should I do it nor he will accept this offer or not.


NFCU nRewards                       11 yrs   2 mo     5k

Chase Freedom VISA                 5 yrs   4 mo     8.6k

AMEX Blue                              5 yrs   0 mo     8k

Chase Freedom World MC           4 yrs   3 mo     9k ( reports high bl of 5.2k)

Citi Driver's Edge MC               2 yrs  11 mo     8.6k

Discover More                          2 yrs  11 mo     2.5k

Chase VISA (Wa-Mu Platinum)     1 yr   10 mo     6k

NFCU cashRewards                    1 yr    7 mo      3k

Addison Ave FCU VISA               0 yr   1 mo      10k

* I also have PIF closed personal loans and auto loan accts.


What do you think?  I would like to hear your opinion ... please ...  Thanks! 

P.S.  Of cause I will keep the ccs with me if I add him as AU on my ccs.

Message 1 of 9
Frequent Contributor

Re: How my CR & Score help my friend's debt?

Hi bunnyrabbit-


Two things that come to my mind. First, I would only help my spouse or an immediate family member regardless of whether or not I'd give them the card. It's just too much of a risk to take with someone who's only a friend. Even a good friend. There's just no good reason to get yourself involved in his financial issues.

Also, if the words BK are being thrown around (even if he's not willing to consider it now), I wouldn't want to be associated in any way with this persons debt. You just never know.


Your heart's in the right place. But maybe let him handle this himself.

Starting Score: 600s
Current Score: EQ 08 798 on 5/28/14, TU 792 on 5/27/4 via Barclay, EX 798 on 5/28/14
Goal Score: 760

Take the FICO Fitness Challenge

Message 2 of 9
Not applicable

Re: How my CR & Score help my friend's debt?

I think you should let your friend apply with a CU and explain his situation and get a personal unsecured loan. These loans, depending on the score and other factors are from 10% to 15% APR at some CU's. The CC's get paid off and an installment loan added. This will also help your friend with one centralized payment and remember any money your friend saves over the current total payments can either be extra payments to the loan and or go to your friends savings account. If you are willing to add your friend as an AU, you might as well co-sign for him/her for the personal loan (just kidding, sarcasm!) Adding anyone who is just a "friend" as an AU on all your cards if a bad idea and trust me you dont want to go that rout.

Message 3 of 9
Established Contributor

Re: How my CR & Score help my friend's debt?

Please know that I mean no disrespect and it is human nature to want to help the ones we care about but do NOT add this person as an AU, and do NOT co-sign anything for them.  As you spoke about in your post, there is a lot of debt that was run up and no money left over after paying bills.  This screams of a person that is financially irresponsible.  And believe me I have been there!  If you bail him out then you will see 2 things.  #1:  No lesson will be learned, and the same issues that got him into the spot he's in will continue in the future.  #2:  it is possible that your caring, and his debt could bring you down with him.


Like I said before, I am not trying to be mean or anything, I just know because I have been there.  The fastest ways to completely RUIN any type of relationship is over finances.


So, now that I've given you my opinion, it's only fair for me to offer some advice that may be helpful to you both.  If you want to help him, then sit down with him, and have him call his credit card companies and ask for a decrease in the interest rate.  You can be there to support him.  Write down all of his bills and start making a plan together to help him pay them off one by one.  To feel a since of accomplishment, he may want to try to pay off that $500 one the fastest.


Next, instead of getting gifts for xmas, he can let his friends and family know that he would prefer cash to put towards a debt that he is working to pay down.  I was in this situation where for 3 years, anything I would normally get gifts for like xmas, or birthdays, I requested cash and every penny of that cash went toward my debts.  Also, if you have CASH that you are just willing to GIVE (not loan) to him, then you can go that route.  But I would even caution against that as it even causes a bit of tension.


So, I hope it all works out for him because I am sure you can attest to the good feeling about having a good credit score and being financially healthy.  Since the whole bankruptcy thing was thrown around, you certainly do not want to have anything with his and your name on it, so I would stay as far away from that as possible.  Call and see about those interest rate decreases, and maybe a credit union can provide him with a consolidation loan.  But promise us that you WILL NOT sign on the dotted line for his debts.

Current Score: Eq: 823 Tu: 830
Goal Score: Eq: 850 Tu: 850

Wallet: PenFed Power Cash 50k | AMEX Blue Cash (AU) 49.5k | Cap One QSMC 26.5k | AMEX Platinum NPSL | USAA Signature Visa 25k
Message 4 of 9
Established Contributor

Re: How my CR & Score help my friend's debt?

Help him with advice! Don't help him by adding him as an AU. Not a good idea. If you must help him financially, don't do it in a way in which your CCC could associate your name with his. This will not help you.

Message 5 of 9
Not applicable

Re: How my CR & Score help my friend's debt?

Thanks everyone for the advice.  I know it is crazy to add my friend on my ccs as AU.


What happened to him was ... he lost a job, his previous truck got recall and switched to current truck but ended-up he still owed on previous truck.  He told me that CU offered him 17k consolidation loan and it does not cover the rest of 9k.  It's because of they go by the Blue Book Value.  So, he is kind of stuck ...

When I see him next time, try to call the cccs to request the lower APR.   And he may need to check with another CU for the loan too.

Message 6 of 9
New Contributor

Re: How my CR & Score help my friend's debt? know are a SuperContributor! best bet is, if this person is important to you or even a potential spouse, Keep your credit GOOD. Cause 2 baddies are NOT better than 1. Somebody has to maintain order.



Starting Score: TU:636 EQ:592
Current Score: TU:709 EQ:637 EX:706 (PSECU)
Goal Score: TU:790EQ:760 EX: 774

Take the FICO Fitness Challenge
Message 7 of 9
Established Contributor

Re: How my CR & Score help my friend's debt?

Under no circumstances, and I mean NO CIRCUMSTANCES, should you do this.


While I applaud you for being willing to help, the fact of the matter is that you will not help him. All you will do is put yourself at risk. Despite his bad situation, he has shown himself to be irresponsible with his finances. An AU can get a hold to a card even if you don't give it to them. You would be liable for any damage. You could experience adverse action for adding someone of such poor credit standing. It makes you look more risky despite your 800 score.


NEVER co-sign or otherwise put your credit out on the line for someone who is financially irresponsible and financially unstable. I don't care if it's a spouse, a parent, or a sibling. Someone in the relationship has to remain responsible and retain their good credit standing.


If you want to help your friend then continue to give him sound financial advise. Help him find a job. If he refused your help then just continue to offer him your love and support as a friend.


He'll figure it out.

FICOs: (as of 12-10-08): EX 759 | (as of 01-24-10): EQ 794 TU 756 EX ? | (as of 3-17-11): EQ 794 TU 790 EX ?

Until Chase lowers my ridiculously high APR they can kiss my patootie! Their card has been retired to the sockdrawer. Smiley Mad
Message 8 of 9
Not applicable

Re: How my CR & Score help my friend's debt?

Yes, you all are right.  It is a huge risk to add my friend as AU on my ccs.   Like on my first post, he did not accept my offer to PIF his Target cc bl of $500.  He told me why he couldn't take my offer ... it's because of he cares about me, and if it was by someone else then he will take it. 

Today, I gave him a copy of our Valentine survey result.  I hope it will help his motivation.

Message 9 of 9
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