- Posts: 1
- Joined: Tue Aug 25, 2015 3:42 pm
Good Afternoon to everyone, completely new person here.
I just joined this site to hopefully, maybe, get some advice or answers on a slightly sticky situation I have at the moment.
My name's Mark, I have several credit cards in my name, most I do not use, just a few (the higher limit cards) that I keep in my wallet.
This situation is sort of strange, bear with me. It regards credit, authorization of another user and trust. Last year, I applied for and was issued a few higher limit credit accounts, one with Citi Bank, one with Chase, and one with Discover. My mother was in the midst of rebuilding her credit, and she asked if she could be added on to the Chase account, and get her own card - being the type of person that likes to help out when needed, and since she's my mother what son wouldn't oblige? I did, and a few weeks later she got her own card in the mail.
Here's where it gets quirky - and this is where I admit I made a ridiculous mistake: She offered to pay the monthly balances off her own bank account for whatever she spends on it, and I would simply transfer the amount I owed each month over to her account, and she'd pay my half. She would keep track of the spending, and I figured that would be fine, but I told her that I had plans to build my credit up and so can she, as long she stayed within predetermined limits on this card. I made a mistake because I should've known I wouldn't know the account balance each day and what the utilization rate was. I didn't see this at the time and thought nothing of it. My fault here for sure.
Fast forward, the same thing happens with the other cards. Same situation.
About three months ago, I was at the grocery store paying for groceries when I swiped my card and the transaction came back as denied. She had told me she was paying the cards each month, I was supplying my half for them as well. So what gives? I immediately suspected the cards were being paid, but nowhere near in proportion to the amount being charged on them. It turned out that I was right in my suspicion. Basically all three of these high limit cards were maxed out, literally each one was at a whopping 96% of the their limit! Each one. One was at $5,900, one at $2,400 and one at around $900. I had NO idea at all, that she was spending this amount. She was making payments alright, but not barely enough to cover a considerable fraction of the balance! When I confronted her about this, my mother, whom since I was a child, saw as somebody who knew how to handle finances sufficiently well just stood there and being the emotional person she is, got quiet and said "I'm sorry" whilst holding back tears. She had also other cards of mine that she was authorized to use, luckily she paid those down (I didn't spend any on them, they were very low limit) and during the several months of this escalating issue, she was using up to seven or even nine cards. I'm no expert on this, [b]but there is positively no way I'd use eight cards[b]. No way. I had planned on seeing no more than 30% to 40% of the cards' limits being used, and it turns out each one is busted flat.
Here are my questions:
(1): Will this seriously dent my credit history for the next seven years? These cards are being paid down, I recall there being only one delayed payment, it was about two weeks late. They are being paid down, but in small increments. Payment size ranges between $150.00 to $300.00 per month.
(2): Although part of me says its a little irrational, I'll ask anyway; Is there anyway to possibly resolve this? I will pay these down, these accounts are in my name, but it also peeves me to think that all this started because my mother doesn't think things through very well at all it seems like. She can be impulsive and reactive, I guess I'm discovering this applies to her financial management skills as well.
(3): Since I do have this unintentional debt, I'm assuming this is going to inflict upon my chances on acquiring a student loan? I am sure it will, but to what degree? I'm trying to get my flying career lined up, it certainly costs money, all this was thrown on me and now I have yet another obstacle to negotiate.
To round up, I'm paying these down, I told my mother not to use my cards - requested she remove herself from my accounts, and she's complied.
I think I also just need to vent a bit, I usually am the type than can swallow a lot of BS and then some, but this was something I had to talk about.
Thanks very much to anyone who read this. I appreciate the time and patience.
Kind Regards to everyone.