Have you ever heard of someone signing your name onto their credit to raise your own? 🤔 Is this a good idea? My dad suggested it, but I’m not sure… #CreditScoreBoost #ParentingAdvice #FinancialTips #PersonalFinance
What is the concept of signing someone’s name onto their credit?
Signing your name onto someone else’s credit involves adding yourself as an authorized user to their credit card account. This allows you to benefit from their positive credit activity and potentially boost your credit score.
Is signing your name onto someone else’s credit a good idea?
While being added as an authorized user can help improve your credit score if the primary cardholder has good credit habits, there are risks involved. If the primary user misses payments or accumulates debt, it could negatively impact your credit score as well.
Things to consider before agreeing to have your name added onto someone else’s credit:
– Understand the primary cardholder’s credit habits and financial responsibility.
– Discuss how the primary cardholder plans to use the credit card and make payments.
– Be aware of the potential risks involved in case of missed payments or debt accumulation.
– Consider alternative ways to improve your credit score, such as building credit through a secured credit card or personal loan.
Remember, it’s essential to make an informed decision that aligns with your financial goals and values. If you have any doubts or concerns, it may be helpful to seek advice from a financial advisor or credit counselor. #CreditAdvice #FinancialLiteracy #CreditScoreTips
I imagine he’s suggesting to put you on as an authorized user? This is legitimate and can help your credit (assuming he’s good with his)
Yours isnt zero you just dont have credit. When you open your first credit card your score starys at 680. Your Dads score isnt really better than just the starter score.
At 700 I wouldn’t take the risk and start your own credit. Now if his was like 800+ I would say to do it but it is not
My parents did this for me – added me as an authorized user on their card. They had the card for 20 years or so. When I finally checked my credit, my credit history showed I’d had 20 years of credit history when I was in my early 20s myself. Really helped raise my score for a bit. There are websites that show how things impact credit. Maybe play around with one of those to see what kind of impact it makes?
Edited to make a little more sense.
Yes, have him add you on 1-2 cards. Best ones are going to be non-Amex cards and the higher the limit, the older the account, and the lower the balance the better.
Give it 1-2 months it should show up on your credit reports. Then go and apply for your own card. Discover or Discover student is a good first card, stay away from Capital One.
I made my daughters authorized users on cards I’ve had for a long time with high credit limits, and their credit scores started around 740. But I would caution that however your dad uses that card(s) will be reflected on your credit. Also, his credit score doesn’t automatically transfer to you. His credit score is based on the totality of all of his credit. Your score will only be based on the card(s) that he makes you an authorized user. Only those card(s) will show up on your credit report. My daughters have credit scores based on 20+ years of credit despite their ages ranging between 15-28.
My kids have been authorized users on a few of my accounts for many years so they will have good credit when they are adults. My credit score is always above 800 so it should help them. However, if your dad doesn’t pay off his credit cards in full each month it could hurt your credit score.
Just get a secured credit card.
Give x money to the bank.
Credit limit is x.
You still have interest and stuff but it’s a way to get credit when you don’t have any.
I added my grandson to my credit card as an authorized user to help him get a credit rating established when he was 17.
I would find another way to increase my credit. What I wouldn’t do is to share a cc with someone who has a problem with impulse buying. I don’t see that ending well.
Depends on *how* he’s doing it. My dad did it with me.
**I** got a credit card, he was the co-signer. *He* then used the card for gas and stuff, and I used it for gas (which he paid for because I was 16 and they were family errands like picking my brothers up).
You develop a good credit history early and you can get a credit card with a co-signer that has income and at least decent credit.
Anything more is overkill.
My dad did this and ran up $100k in credit card debt that I didn’t find out about until I tried to get a car loan. Proceed with caution.
I added my 6 and 3 year old as account users on my credit card to help build their credit. It’s legitimate.
If you’re talking about becoming an authorized user, just have him show you his Credit Karma page or something like that. Can see late payments and so forth so you know what you’re getting into. If he’s doing it for the right reasons, he shouldn’t have an issue with this.
He’s talking about adding you as an authorized user. It lends his credit history on the credit card to yours, while you are not responsible for the debt. On the credit report, it will actually say “authorized user”.
Since you don’t have any credit, it’s about giving you some foundation, some history. Not wanting to do it is perfectly fine also.
I did this for my wife, she had an 780 credit score from when I first did it 5 years ago. She was in the low 500s.
Sounds like he’s offering to add you as an authorized user, which basically puts that card’s history on your report. So if he has an older card with a pristine payment history, high limit and low utilization, it could really be a solid addition to increase your credit score. But if his payment history is spotty or he has high utilization it will hurt your score. This is true in the future, too. If his payment history is perfect now but he later misses a payment, that will show on your report. BUT the good news is if that happens you can just call the card company and have them remove you from the account. It will then disappear from your report. Authorized users aren’t responsible for repayment.
Probably the best plan would be to have him add you as an authorized user to his highest balance lowest utilization cards with perfect payment history, then use your shiny new score to apply for a card or two of your own. You’ll be able to get better cards and higher limits with his account on your report. Once you’ve had those cards for awhile and handled them responsibly, you’ll be able to remove yourself from his account and your score will still be solid.
It’s a great move, assuming your dad has good credit and pays it off
If he is good with money, like never misses a payment for the last 10yrs. He could put his gas, water or electric account in your name… this type of thing helps as well. And is less likely to go horribly wrong.
Before diving into this, I’d say it’s worth treading carefully. While adding your name to your dad’s credit could give your score a boost if he’s good with payments, there are still risks involved. If things go south, like missed payments or overspending, it could drag both your scores down.
Just do not let Dad run up your bill.. that will not help anyone.. plus, your score is alot higher than 0. You get a few hundred points just being alive.
Edit.. my bad – I thought your Dad wanted to be an AU on your card. Just realized it was the other way around..
My dad did this with me starting at 16 and I had good credit by ~24 when i went to get my own card for the first time. If hes good with credit it’s a no brainer
My mom did this for me, and it was one of the best things she could have done for 18 yo me.
I added my daughter to a credit card account as an authorized user. I designated that card in my mind for her exclusive use to jump her credit. My credit was about 722 at that point, hers was in the high 500s. The credit limit was about $3000 I think? I could monitor it online to make sure she was responsible. She was very responsible. Her credit jumped so quickly. I’m at 766 now and catching up to her 785. It was a great idea for us.
Don’t 700 isn’t great and what one does affects the other. Get a secured CC where you send them a couple of hundred up front and use that for everything. Pay it off every payday and your credit will pass his in a year.
I added both of my minor siblings to my oldest card from TD bank as authorized users. Their credit reports show my history and utilization. I did not give them the cards, they are in my sock drawer. I did this because my parents have awful credit(for reasons outside their control really) and didn’t want my siblings to be screwed when they applied for college loans, like I was.
If the person doing it has good habits and history it can be beneficial.
It’s normal and a good idea if he pays his credit card regularly as you can establish a good credit rating before you you apply for your first card or loan.
The fact you’re asking tells me maybe you don’t find him easily trusted. In which case, maybe no despite the fact it is often a legitimate & helpful tactic.
Do it if you trust your dad 100% to make payments on time. Otherwise just wait till you can get a student card.
You could do that. However, if you just get a credit card, any credit card, and keep it paid off, your credit history (and score) will build naturally and surprisingly quickly.
Get a better credit card a little bit later. The only real difference between a lot of cards is the interest rate, which is not a major concern IF you keep it paid off. They count on you letting a balance build up.
Call me overly pessimistic and cynical, but I would never tie my credit to another, even someone I trust. As I tell people, I don’t mistrust anyone, but I don’t trust everyone. I also do not trust the universe. Shit happens and the more people you are tied to, the bigger net for said shit.
Your father can have the absolute best intentions for you and things can still go wrong and he can miss payments. Life has a way of fucking you from time to time.
Just get your own card. Your spending habits and responsibility will give you an appropriate credit rating soon enough.
The only reason to do what your father proposes is if you are planning to use credit for a major purchase such as a car or home sooner than you will build credit on your own. Then, getting an instant credit history would be useful.
Another easier way is to have in consign a small personal loans for 1-2k. Put it in a savings account with as close to the same i retest rate as the loan and use the same loan money to pay it off monthly.
Yes this will help if you trust your father and you know he has made good financial decisions for you and your family.
My parents put my on their discover card when I was 18 and I am 36 now with amazing credit and I am still listed on their card.
Me & my mom did this last year. It works
Good idea. My grandpa did this for me a long time ago and my “credit history” went back to like 1990 when he had opened the card or something 😂
I did this for my sister when she went off to college, so she could build some credit to qualify for an off-campus apartment. If you’re comfortable with it and he’s a responsible user, it can have great benefits for you down the road. I wish someone had done it for me.
You might be better off starting with a zero credit score.
700 isn’t a great score and you could introduce issues.
Depends on what your goals are but zero isn’t really a credit score. It simply means there is no history to calculate a score.
He should ask them if putting you as an authorized use will affect your credit
My fiance has be as an authorized user on her ccs and it helped my credit score jump through the roof. So yeah it’s a good idea if he’s good with his cards.
Yeah and it’s something I wish my parents did for me.
It’s a good idea if your dad has a very low utilization and pays on time every time. It will grow your credit by giving you a longer history, available credit and positive payment history. He doesn’t even need to give you the card. If it doesn’t help you can remove yourself as an authorized user. I would be concerned with the impulse spending. Does he pay that off and how much does he pay? Is it in full every month or a balance left on?
Not quite the same but I had some collections and no positive credit history. I got all my collections removed, my sister added me as an authorized user and I got a secured card of my own. My score went from 475 to 750
Don’t they make cards specifically for building credit faster? Seems like I had one when I started out after Chapter 13 a few decades ago. I’d prefer that, I think.
I had a credit score in the low 600’s..
My wife had a 750+..
When she added me as an authorized user on her cards, my score went up by about 90 points basically overnight.
**This is only a good idea if the main card holder has great credit.**
I know in my spouse’s case, they have credit card history going back before they were born. It’s been a help starting off with an 800+ credit score.
This is great way to build your credit if you got a reliable dad. My gf and I are mid 30s and both of us were put on parents cards when we were young. We both now have high 700s for credit.
I had my parents add me as an authorized user, boosted my credit 100pt
Yes I added my son as an authorized user on my cards and it increased his credit rating.
I opened a joint checking account with my teenage daughter before she entered college & she graduated with an excellent credit rating because of it.