Hi all, I was having a conversation today with my girlfriends mom about credit. She was talking about her interest rate on her auto loan. I told her "at least you have an auto loan, im too poor and my credit sucks too much to get approved for one". Im currently driving a 2003 Ford F150 that is in my brothers name and almost paid off, theres about $6000 left on the loan. I want to get in financed in my name but im 18 and I have limited credit history and ive been denied at 3 different places. My girlfriend has good credit because she was put on one of her moms credit cards and one of her dads(Divorced) My girlfriends mom offered to put me on her credit card to help me build credit. Is this possible? Would it help? Would I be required to use the card or would her simply using and paying it down help me?
if your gf's mom adds you to her credit card as an "authorized user", then her credit will flow over to yours as well. you don't have to use the card to benefit, just being listed as an authorized user is enough. you'd better make sure she has good credit, because bad credit will flow to you as well. you're only 18, so i hope your credit "sucks" because you don't have any credit history, and not because it's damaged. have you thought about a student credit card? you might not get a very high credit limit but at least you'd have something. always remember to pay on time! most people are clueless about cc's until they're in their early 20's, so you're already ahead of the game. if you are added as an AU to your gf's mom cc, i recommend that you don't use it. you don't want any contention between you and your gf's family in case something happens with the charges you put on her card, like if you can't pay for them. wait until your credit is built up, then get your own cc.
"if you are added as an AU to your gf's mom cc, i recommend that you don't use it. you don't want any contention between you and your gf's family in case something happens with the charges you put on her card, like if you can't pay for them. wait until your credit is built up, then get your own cc." In fact, not only should you not use the account, but your gf's mom should not even give you the card. Use this only to establish enough credit history to get a card in your own name, then have her remove you as an authorized user. Note that only her payment history on this particular card will end up on your reports, and that if she pays late, you will get that also. Also note that if her finances get messed up, a creditor might come after you even though legally as only an authorized user you do not owe the debt. If she went bankrupt, for example, you might be dealing with getting an "included in bankruptcy" notice off your reports. If you can get a card in your own name, even if the CL is low, but with no ridiculous fees, with on time payment, in a year you will get better offers and be in a similar position to if you borrowed this credit history to get started, but without the above risks. Sharing credit history via AU makes more sense when you are married, and your finances are linked anyway.
LazyD, I'm not trying to be a pain, but owing $6000 on a car or truck is NOT considered "Almost Paid Off", unless the car was 40k or 50k to begin with. Everybody wants to buy a new car that they really can't afford so they can look cool driving a car that is beyond their means. I make really good money and I drive a 6 year old luxury car that I paid 10k for cash. I've driven it for 3 years and could sell it for 7k today, if not a little more. That comes to about $85 a month for nice transportation. Sure I could have a nice Benz for $500 a month, but I would rather use the extra $425 a month entertaining the ladies and having fun. Start small and get a student credit card. Use it and pay it off. Get a Chevron card and use it, but pay it off. Save up some money and buy a car that is used, kinda cool, and that you will still have some money to pay for stuff and take your girlfriends out. The last thing an 18 year old needs is his girlfriend's parentâ??s credit and a new mustang that he can't afford. Ask your girlfriend or any girl for that matter. Would they prefer that you have a really cool car and could only afford to take them to the $1 movies and Wendy's and Mickey D's? Or a decent car that was clean and ran good but you could take them anywhere you chose (within reason) because you had an extra $300 a month to spend?
I agree. You'd really have to be crazy to have your girlfriend's mother add you as an AU to their credit card account(s). What happens when you break her heart and her mom goes to the police and accuses you of identity theft? If your credit "sucks" because of a limited history, get a student credit card. If you are already deep in the muck because of irresponsibility or being naive or not having a clue or whatever else, then try to get a credit card for damaged credit such as First Premier or Credit One Bank or Rewards 660. They have fees, but at least if you pay on time, you can establish some better credit history. Good luck!
If your GF's mom has great credit it will flow to you by becoming an authorized user. I don't see a problem with it, with some caveats mentioned by other people: 1) You'd better be darn certain that GF's mom has outstanding credit and will have outstanding credit in the future. If she's anything less than the rock of Gibraltar, pass this offer by. 2) You don't want, need, or deserve access to mom's actual credit. In other words, the card with your name on it stays with her. Pretend it doesn't exist. 3) Use the privilege to build your credit, not to spend $25k on a vehicle that will be worth $10k in three years and leave you in a worse situation. No one ever got ahead by spending five digit sums on things that break down, rust, require maintenance and insurance, and lose value. Drive what you have and pay it off. When you have cash lying around and can actually afford a better vehicle you'll know it. SS101's strategy for car buying is exactly what you need to be doing. Good credit is a great thing to have, but cash in your pocket is far better. Having money negates the need to borrow money.
"Give a man a fish, and you feed him for a day. Teach a man to fish, and you feed him for life." http://www.halfbakery.com/idea/Give_20A_20Man_20A_20Fish_2e_2e_2e "Give him a credit card, and he will be in debt for life. Teach him how to use it wisely, and he might have a chance." -- ontrack
