About four years ago, I had my mom co-sign for me on a CapitalOne card â?? the idea CapitalOne was pushing was â??Get a credit card at only age 16, and start building your credit today! Then, when youâ??re 20 or 21, youâ??ll already have a credit history!â?. The idea was that I wouldnâ??t have to start with a secured card when I really needed credit. Looks like Iâ??m 21 and still donâ??t have a halfway respectable credit history. Iâ??m absolutely furious over CapitalOneâ??s repeated refusal to remove my momâ??s name from the card (listed as co-signer Guarantor), especially after four different representatives told me I could do just that the previous day. They suggested that the only thing I could do was close the account (Thanks CapitalOne, like I really want that on my record) and reapply for a new card, then theyâ??ll put the 4-year history on my new account. However they will not use my flawless 4-year history with CapitalOne in my favor when granting me an additional card. So I could technically close my current account, apply for a new one, get denied, and be entirely without a credit card. The guy even went a step further to tell me that â??Being an Authorized User doesnâ??t build your credit ratingâ??. So, what is there left to do now? I am very impatient right now (part of my problem), as it seems I have to wait longer (just to get the cards) to do even more waiting (to build credit). Iâ??m frustrated because it doesnâ??t seem like Iâ??m doing anything right here â?? I canâ??t build my credit the way I want to. I donâ??t want a closed account on my record, but I do want a card in my name â?? these AUâ??s donâ??t seem to be helping me much. On the other hand, I donâ??t want to chance another hard INQ and a denial. In the past 12 months, Iâ??ve had 3 INQs with Experian, 7 INQs with TransUnion, and 7 INQs with Equifax. All of those were 1 Agency querying multiple bureaus, and I hope that the majority of the denials were due to the fact that I had a high balance on my card at the time. Should I get a secured card at some local bank? Should I wait? Are a $2k AU and $14k AU really helping my record at all? Think I have any chance at CapitalOne, or would they instantly refuse due to my numerous INQs? Iâ??m hoping that the reason for denial on past cards was due to having a high balance - otherwise, I simply do not understand why my credit is so bad that I canâ??t even get crappy subprime cards like Sears. And I truly am sorry for being such a newbie at this â?? time is going to make me a little more helpful to everyone here.
Did your mom "co-sign", or were you an "authorized user" on a card for which she was responsible? At 16, can you legally make a binding contract, even with parental approval? Can they report your credit history, if you cannot agree to a contract? Separate from that issue, what did Cap1 represent in their offer, and do you have it in writing? If they represented that the account history and liability would transfer to you at legal age, or would be considered in your application, you may be able to hold them to that, perhaps with a call to Mr. Cook to get them to make the right decision, particularly if you have handled the account reponsibly.
My mom co-signed. She is listed as the credit grantor, and her credit report shows that she is the co-signer for the card. Only one card was issued, and it was in my name. On my credit report, I am merely listed as Authorized User. I'm not sure if you can legally make a binding contract at age 16, even with parental approval - but I sure signed something, and CapitalOne sure has been reporting my history for the past 4 years or so. Cap1's offer was initially sort of bland. I think initial credit was at around $500, and the APR was a whopping 19.8%, even with a Co-Signer. Over the years, they pulled some strings and dropped the APR to 9.9%, and raised the limit to a maximum of $2,000. I don't have the original offer in writing, but I highly doubt it presented any options concerning liability being transferred to me after a given amount of time. The account was definitely handled responsibly - never any lates or negatives on the account at all. The thing that gets me - I talked to three different Cap1 reps, who all told me that my mother could transfer complete account control to me - before talking to a 4th rep, who told me that it was physically impossible. I have two options, according to them. 1.) Leave the account open as an AU, which means I can't ever get the APR dropped any further or CL raised any higher (according to them, since it was a co-sign). 2.) Have mother close the account (resulting in an 'account closed by credit grantor' on my account?), apply for a new Cap1 card, and, upon approval, have the previous history/balance transferred to my new card. The biggest thing I'm afraid of is a closed account on my report. I don't want that on my record. If removed, do AU's just fall off, after time? Possibly I can have Cap1 remove me as an authorized user, wait till it falls off, then have her close the account at a later date, to avoid getting a closed account?
1. If you close the account it should be reported as closed at consumer request which is not considered bad. 2. Until you are 18 or unless emancipated, you can not as a minor enter into a legally binding contract. I guess that your mother took legal responsibility for all the charges. Consider this experience as a VALUABLE lesson 1. Read and understand EVERYTHING you sign 2. KEEP ALL YOUR DOCUMENTS. 3. If you have been responsible with the Capital One account then consider opening up your OWN account without any co-signers. Also, consider getting another secured credit card - ( be careful here and avoid a RIP-OFF card ) - other posters recommend www.apbank.com. 4. Consider getting a PASSBOOK loan from either a credit union or a bank which will report the loan to the credit reporting agencies. 5. Consider credit as a TOOL, use credit sparingly and consider long range goals. In a couple of years you probably will want to buy a house. Consider buying assets. I suggest reading the book "Rich Dad,Poor Dad" 6. Do all of the above and before your 25th birthday you will be way ahead of your peers.
