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Joint loans or applications to help s/o

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Established Member

Joint loans or applications to help s/o

Was wondering if it would hurt or help to put family member on joint loan or if you can do a joint credit card

My score is 680 i make 65,000 yearly
Brother score is 550’s makes 200,000 yearly

Would doing a joint loan help his credit wpuld jos score hurt mine doing a joint loan or would both together help for a loan or credit card
Message 1 of 13
12 REPLIES 12
Frequent Contributor

Re: Joint loans or applications to help s/o

The benefits would be few; the potential downsides would be numerous.

In my opinion, joint accounts should be avoided. They make both parties responsible for the debt and any other potential credit report related problems (utilization, lates, defaults, etc). Because both are responsible for the debt, the blemishes can not be removed from a report even if only one party was responsible for the blemish.

If you are looking to lend a boost to his credit profile, maybe consider making him an authorized user. It doesn’t shelter you from all potential issues, but it still gives you more control.

Personal Credit -
AMEX: Platinum, Green, Cash Magnet, Schwab Investor
PNC: Cash Rewards
NFCU: Flaghship Rewards, Cash Rewards, CLOC
PSECU: Founders
BB&T: Spectrum Cash Rewards
CapOne: Quicksilver
Discover: IT Chrome
Synchrony: PayPal 2%, PayPal Credit
Barclays: Uber
Store Cards: Target
AU Cards: Citi Rewards+

Business Credit-
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Message 2 of 13
Established Member

Re: Joint loans or applications to help s/o

Thanks i know the obvious risks involved i was just wondering ow the use it in making a decision on a loan or credit card do the add the scores together and the total income?
Message 3 of 13
Frequent Contributor

Re: Joint loans or applications to help s/o

In general, both joint applicants have to qualify based upon their own standing. A good profile doesn’t prop up a bad profile in a joint situation.
Personal Credit -
AMEX: Platinum, Green, Cash Magnet, Schwab Investor
PNC: Cash Rewards
NFCU: Flaghship Rewards, Cash Rewards, CLOC
PSECU: Founders
BB&T: Spectrum Cash Rewards
CapOne: Quicksilver
Discover: IT Chrome
Synchrony: PayPal 2%, PayPal Credit
Barclays: Uber
Store Cards: Target
AU Cards: Citi Rewards+

Business Credit-
AMEX: Blue Business Plus, Amazon Prime, Simply Cash Plus
Message 4 of 13
Frequent Contributor

Re: Joint loans or applications to help s/o

To be honest, if he's making 200k a year and in the 500s he's doing something horribly wrong.  I would not trust him until he shows over time that he can handle credit responsibly.  




Message 5 of 13
Established Contributor

Re: Joint loans or applications to help s/o

It would help to know what is keeping his scores down. Making him an AU is most beneficial if his credit history is short, has a thin file, or needs an increase in his overall available credit. However, if his cards are maxed out and he has derogatories on his reports, it won’t help. As for co-signing, anyone here will tell you it’s a bad idea, but again, we don’t have enough information about either of your profiles to know if or how it could help in any way. More details are needed.

On a side note, if you decide to co-sign, make sure it’s something that you can afford to pay for yourself, should the need arise. I would also make sure that you’re in charge of payments and put him on a payment schedule to pay you. Maybe even take an additional down payment to cover yourself.


Aug 2019:

Stats:
Message 6 of 13
Frequent Contributor

Re: Joint loans or applications to help s/o

When it comes to fam members it's always a touchy feely subject. The obvious knee jerk response is of course you want to help them out but on the flip side of things in what form should this "help" be delivered in the most effective way while at the same time not to compromise your own position. There's no easy answer as emotional ties are hard at work and that can make or break relationships depending on how it's perceived or handled. In the end of course, it's ultimately up to you to make that decision.

Like a poster on here had mentioned, find out why your bro has fallen into this financial hole considering his take home is sizeable. With that said, there are a ton of reasons how and why this could have happened but for sure find out. If he doesn't want to disclose why, then you know what you're in for. And if he does, then you both can decide the best course of action to take moving forward.

Any time you go into a joint credit or loan, you're both on the hook to meet and fulfill the terms of your financial obligation. You can rise together or fall. I say go with your gut as you know your bro better than anyone else on here.







"Give me liberty, or give me credit!" -PlasticDad


Message 7 of 13
Moderator Emeritus

Re: Joint loans or applications to help s/o

At 200k annual income you can take a week’s after tax paycheck and establish secured loan and 3 secured cards.

Not sure I would bother when it trivially easy to start credit from basically zero if you have cash.



        
Message 8 of 13
Regular Contributor

Re: Joint loans or applications to help s/o


@Chache wrote:
Was wondering if it would hurt or help to put family member on joint loan or if you can do a joint credit card

My score is 680 i make 65,000 yearly
Brother score is 550’s makes 200,000 yearly

Would doing a joint loan help his credit wpuld jos score hurt mine doing a joint loan or would both together help for a loan or credit card

 

No NO No NO No NO No NO

 

Nooooooooooooooooooooo

 

Do not do this.   Take this idea, lock it in a box, throw it in the ocean and never think of this again.  Ever.

 

Starting Score: F8 720
Current Score: F8 784
Goal Score: F8 800


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Message 9 of 13
Established Contributor

Re: Joint loans or applications to help s/o

At 200k per year, I would say that your brother has the resources to repair his own credit.  I would not open any joint accounts.











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Message 10 of 13
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