OH MY GOSH!!! I am remembering when my daughter was 2 (she is now 13) I got her a Citibank card (AU on my account obviously). I did it as a joke as my baby was quite spoiled back then. Anyway, must have been 5 years later I filed b/k. I never even thought twice about that card. OH WHAT HAVE I DONE TO HER!!!!! Now she has a b/k on her file????
Melinda's Capital One application was her very first credit app. She has now used the card and I would expect that she will have a credit file at all 3 CRA's soon. The question is how soon and whether that Macy's AU will also show up. Can anyone shed any light on the value of AU's for building credit? Best regards, Jim P.S. - Her car loan with me will happen later. Next year when she applies to the University of California, there will a an application for a student loan attached. When she turns 18, I want 4 credit acounts with her name on it. At this time only one account is a done deal ( Cap One). the four (4) are 1. Cap One 2. Retail card 3. Cosigned auto loan 4. Student loan (even if it is simply $1K)
I appreciate your humor but seriously... When you are a university student or young person getting started in your professional life - you need a good credit file to rent apertments, get utilies established, get a job in some cases and avoid loan shark rates on auto purchases etc. Best regards, Jim
I think that when I have kids, one of the first things I'll do will be to open up an account with their name on it as an AU. Maybe a couple. Think of how kick-butt your score would be if you were 18, with a 17-year history on 3 different cards, no late pays and a $10K limit. Of course if my kid is anything like me, with the NEXT card he/she gets as a grown-up, all that positive will go straight down the tubes.
Jim: I'm sorry, I wasn't trying to be funny. I am dead serious. I did put her on my Citibank account and she did have a card with her name on it. It was a conversation piece only of course but still. Now if this went on her report then I'm sure the subsequent b/k is on her report as well. I wonder how I can find out. I recall giving her s.s. # and was shocked when the car actually arrived. By the way, I think what you are doing is very smart. I think I will do the same again just to get some time/history on it.
AU's are the easiest accounts to get deleted. If she's showing any tradelines on her account marked with a bk, dispute as not mine.
No need to be sorry. - I do feel concern for you about the BK. I never thought I would have to do one. But it happened to me in 1998. So we are rowing the same boat. What I find interesting here is that only GEORGE and I seemed to see value in Melinda having an AU account with Macy's. It will be an education for me if it turns out that the AU has little or no value. If so Macy's told me that Melinda can get her own account when she is 18. Conversely, I can't see how her having an AU account for a few years can hurt her. It will be interesting to see her scores in 2 years. Best regards, Jim
Hey Jim, I also agree with you and George. You are doing the correct thing with your daughters credit and future. But do you know what all of this really means? The real bottom line is that you are getting old. HaHa. LOL I'm just kidding. I couldn't resist throwing that out. But seriously, you are doing absolutely what I would do if in that situation. Good luck with it.
BK before 18 can have NO affect on her...(NOT OF LEGAL AGE)... MORE...it will be gone when she's 14 or 15??? "SHE" NEVER FILED FOR BK...
Hi LKH !!! Thanks for the support regarding what I am doing with Melinda's credit. Isn't it a little strange that more people haven't said "by all means make her an AU. Someone did this for me and it really built my credit up". This has made me wonder whether the AU helps build credit. As for getting old - HaHa - It's true. I am 43. If I get married again to a younger woman, then I will get back that 20's-30's mind set. Best regards, Jim P.S. - I am glad you stayed on the board. I remember when you were toying with the idea of leaving. It would have been a mistake to leave. You are helping a lot of people here.
I also agree with what you are doing. I believe she would probably be 17 by time the b/k falls off. I am going to see about ordering her reports and I will dispute it. It would be nice if they left the tradeline on and just took the b/k off!!! By time she is 18 she will have had 16 years of history!!!!! I'll let you know what it says
If she has a cap1 of her own... and a macys that reports... she has plenty (remember her future applications will look at available credit per HER income so you don't want to load her up too much or she won't be able to get Citi or Amex later b/c she'll have too much available credit already 1-2 major cards (cap1 and eventually 1 other) 1 retail (macys) 1 installment=have her pay it at least 25 mos pretty max formula for scores. then later you can take her off your cards and she'll keep the aging but discard the avail credit off her ability to obtain credit. Nice plan for her, by the way.
Thanks for your response. That now makes 3 of us who see value in the AU assuming it reports. Marie, on another topic I plan to ask Mr. Cook for a reduction in apr. on my Platinum card to 7.9% soon from 8.9%. Have you done this yet? He gave me a $2,000 limit increase a while ago and I have to wait a little longer before I PFB him again. Best regards, Jim
nope. I never asked pretty happy with 8.9 fixed and the huge limits they've given me. I was also a bit worried that 7.9 fixed wouldn't really stay fixed once interest rates rise (and I haven't really seen it advertised... only 8.9). But... if you get it, please post it on a new thread as we all would like to learn if someone really gets 7.9 fixed...
Just a thought, but "IF" I had a kid, I'd have him/her apply for the credits cards and ask to be the AU on their acct... LOL
Hi Marie !! I understand your reasoning here. My Capital One limit is now $12,000 at 8.9%. I am not in a position to ask for the 7.9% rate yet. The 7.9% fixed rate really does exist. I wrote a thread about the advertisement I found. Do a search on "Jim". See my 7-6-2002 thread. I wrote down the terms, telephone number to call, etc. Do a PF when you are comfortable. In my humble opinion, that is the only way either of us will get the rate. Best regards, Jim
