For someone who is just starting out and interested in getting a cell phone or credit card and has no real credit history of his own, is the companies willingness to extend credit to the individual realted to the individual’s parents in any way? Thanks.
Ah, crap. I thought this was GQ. Someone please report this. Sorry Mods.
It’s in GQ… did someone move it and not say so?
Your credit is your credit, according to everything I’ve ever seen.
Yes, it was moved.
Yep. I reported his post.
From what I understand, parents can put a child’s credit on with their own to get them a bit of a start (i.e., co-signing). I don’t think that it is automatic though. I’m sure a Doper with more knowledge will come along shortly - I’m just regurgitating what I heard on Suze Orman whilst paying half-attention.
How old is the person in question?
Sorry, and by “child” I mean “offspring”, not, you know, a wee little kid. Sorry the antihistamines make me a little groggy.
When I got my first credit card I was 20 and living away from my parents. I didn’t have to give any of their details. The card was issued (admittedly with a low credit limit) purely on the basis of *my * financial circumstances.
No, unless the young person has the same name as their parent and the CRAs get the files mixed up.
I think it can help if you list your parents home as your address, if your parents live in a upscale area,
Credit companies will go to great lengths to get a new person in their camp. People tend to stick with the first company they get a credit card from. (I’m no exception, 16 years and running.) Teenagers/Young adults are great for them because there is a good chance they will stick around for life, plus many of them are financially ignorant and will generate huge amounts of fees over that time. None of this means that you shouldn’t sign up with a particular company, just go in with your eyes open.
Your parents’ credit scores are wholly separate from yours.
Your street address does not determine your FICO score.
One way for your parents to inflate your FICO would be to slap you on an older, no balance credit card that they have. Dad putting his 22-year-old son as an authorized user on a credit card he’s had with Bank of America for 10 years would likely help his son’s credit score, as long as Dad made sure that BoA reported the card on sonnyboy’s credit report.
Oh, and if Dad went late on his BoA card in the above scenario?
You guessed it. It’d ding son’s credit.
If dad goes bankrupt without taking his son off the card in the above scenario?
Sonnyboy winds up with “Included in Bankruptcy” on his credit report. I’m not saying he can’t get that card off his report, but if it happenned when Sonny was trying to close on a house, it might derail his plans for the future.
Disclaimer: I advise any young people trying to get into more debt to take a gander at http://www.daveramsey.com/ . I suggest reading “Total Money Makeover” and taking it to heart.
I have a joint credit card with my mother - we each have our own card, but all the charges go into the same account. So I’m building my own credit because Mom makes sure that the bill is paid every month regardless (she got it for me for university - when my brother went, they just got a joint debit account which we still get the bills for ten years later), and she builds her own. Win-win situation.
Okay, I was asking this because I don’t have any credit, but I keep getting turned down for even introductory cards such as Capital One. I got my credit report and there is only two things on there. I $2000 student loan of mine in good standing and something that was sent over to a collection agency. Long story short come to find out this is my fathers and it accidentally got put on my account. The problem is that we have the same name except I am a junior. At least that’s what I thought. I looked at my birth certificate today and there is no Jr. on there so I don’t know what my name actually is.
Anyways, come to find out I believe his poor credit is affecting my credit because they are getting the two of us confused with us having the same exact name and address. Yeah, I have a mess to sort out now.
That should read “there are only two things on there.”
You need to get that negative item off your credit report.
You should be able to persuade the collection agency to remove it.
If judicious sending of certified mail and phone calls to them fails to remove it, let me know on here. One of my friends at work won $5,000 in a settlement from a creditor who failed to properly remove incorrect information.
I can hook you up with the name of his lawyer.
Thanks for the help. I will let you know. It’s actually the collection agency which is giving me a hell of a time getting it off. I had to dispute it with the credit agency so they sent it to the collection agency to get it verified. Well, the credit agency saw that the names matched and the addresses matched so they assumed it was indeed me and confirmed the debt; however, our social security numbers obviously do not match. They failed to notice that. When I call the person I need to talk to is never there.
Then as another surprise I got a copy of my credit report from Experian and this particular item is not on there, but there’s another negative item of my father’s on there. So basically I need to order all three of my credit reports at the same time and my father’s as well and we need to sit and determine what belongs to whom and hopefully the credit agencies will believe us and switch the items accordingly.
It really sucks having the same name and address as someone with poor credit.