Helping My Friend's Credit

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kcarter609
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Helping My Friend's Credit

Postby kcarter609 » Sat Oct 13, 2012 8:42 pm

Ok, so here's the story:

A very good friend of mine that I've known for 12+ years asked me what credit card he should get, so I asked him what he had so far. He has a Capital One Secure Card with a $200 limit. He also mentioned his mom didn't give him his student loan bills for 3 months so they were all past due. He called and got them to remove the fees and freeze the accounts because he's going back to school in January, but a car accident put him out of school for a year. So I said let's use CK to check your report. It turns out when he let his mom take care of his CC (she wanted to use it for Netflix and said she'd take care of paying the bill and all that each month), she was late on a payment, but since it's a secured card, they reported that it was late to the credit bureaus.

CK says his score is 604, he has just that secured credit card with a $200 limit, and the late payment. The limit being so low makes his utilization over 60% almost always, so that hurts too.

What I want to know is this:

If I make him an AU on my Freedom (for the CL to report to his report too) and an AU on my AMEX (to keep his AAoA up around 2 years), and CUT UP the cards as soon as they show up at my house so he never even sees them/uses them (yes, he's on board with this whole idea if it will work), will it help him?

I was thinking after a few months he could apply for Discover since Chase and them compete, then a few months later again apply for his own Freedom and then I can take him off of my cards as an AU. After that he would be ok on his own.

1) Will this work? Or does this not have the effect I think it does?
2) Can this negatively affect me in any way if he never has the cards to use?

Thanks

BTW, He's not letting his mom touch anything anymore.

Active Cards:
Chase Freedom 10+10 Visa Signature ($9k Limit - 8/2012)
Chase Sapphire Preferred ($10k Limit - 2/2013)
Chase Ink Plus ($7k Limit - 2/2013)
Discover IT ($9.5k Limit - 10/2012)
AMEX Zync (No Pre-set Limit - 1/2010)
AMEX Blue Cash Everyday ($20k Limit - 1/2013 - Backdate to 1/2010)


432521
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Postby 432521 » Sat Oct 13, 2012 8:57 pm

never, i repeat never add a friend to any of your credit lines, it is a mistake because something as little as a mistaken comment can ruin a friendship and stuff can go downhill really fast.
March 2011- Wellsfargo Cash Back College Card
May 2012- Chase Freedom
May 2012- Discover IT
August 2012- American Express Blue Cash Everyday

DavidNY
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Postby DavidNY » Sat Oct 13, 2012 9:09 pm

Your idea would help your friend however if something goes wrong you'd be responsible. If you decide to do it be sure the card issuers have his SSN so the AU accounts can appear on his credit report.


kcarter609
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Postby kcarter609 » Sat Oct 13, 2012 9:31 pm

DavidNY wrote:Your idea would help your friend however if something goes wrong you'd be responsible. If you decide to do it be sure the card issures have his SSN so the AU accounts can appear on his credit report.


I'm not trying to be rude or anything, but what can go wrong if I add him as an AU and cut up the cards so he never sees/uses them? Is there something I'm missing?

Active Cards:
Chase Freedom 10+10 Visa Signature ($9k Limit - 8/2012)
Chase Sapphire Preferred ($10k Limit - 2/2013)
Chase Ink Plus ($7k Limit - 2/2013)
Discover IT ($9.5k Limit - 10/2012)
AMEX Zync (No Pre-set Limit - 1/2010)
AMEX Blue Cash Everyday ($20k Limit - 1/2013 - Backdate to 1/2010)

DavidNY
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Postby DavidNY » Sat Oct 13, 2012 9:38 pm

kcarter609 wrote:what can go wrong


If he gets your card info and charges something you may be responsible for it.

kcarter609
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Location: VA

Postby kcarter609 » Sat Oct 13, 2012 9:44 pm

DavidNY wrote:If he gets your card info and charges something you may be responsible for it.


I understand. How long do you think it'll take before he can apply for his own cards and be accepted? Is Discover More a good option? Or should I have him apply for other cards first?

Active Cards:
Chase Freedom 10+10 Visa Signature ($9k Limit - 8/2012)
Chase Sapphire Preferred ($10k Limit - 2/2013)
Chase Ink Plus ($7k Limit - 2/2013)
Discover IT ($9.5k Limit - 10/2012)
AMEX Zync (No Pre-set Limit - 1/2010)
AMEX Blue Cash Everyday ($20k Limit - 1/2013 - Backdate to 1/2010)

Rory
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Postby Rory » Sun Oct 14, 2012 12:01 am

kcarter609 wrote:I'm not trying to be rude or anything, but what can go wrong if I add him as an AU and cut up the cards so he never sees/uses them? Is there something I'm missing?


he could potentially call amex and ask for a replacement card using his SSN and name since its on the AU account and they may/may not inform you of this. Just a possible area he could screw you over with. I know its not nice to think about, but you are giving his the option even though he may not now have any reason to do so.

Money and friends are two animals best kept separate, much like friends and girl/boyfriends, they only make the other more difficult and stressed when put together, especially in extremes
Amex Zync - NPSL (Cleared up to 25k)
Amex BCE - 12000 limit
Amex BCP - 4200 limit
FIA Rewards Amex- 3500 limit
Chase Freedom - 2000 limit
Chase Slate - 2000 Limit
BoA Cash Rewards Privileges- 3000 limit
Barclaycard Rewards MC - 3000 limit
Discover IT- 3500 limit
Marriott PR- 5000 limit
21 years old with alot of life to spend ;)
Its not about the ending, its about the journey,
just as long as the ending is just as good :cool:


jeffysdad
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Postby jeffysdad » Sun Oct 14, 2012 6:06 am

I agree with everyone here who says not to do it. Don't loan friends money and don't ever put a friend on your credit account. The only thing good about loaning a friend money compared with putting him/her on your account is that in the case of the former you know how much money you lost; in the latter it's open-ended. Let your friend figure out how to improve his credit himself; that's one of the things adults have to do.
American Express: Blue Cash Preferred (groceries, 6%; gas, department store, 3%); Gold Delta SkyMiles (Delta Air Lines, 2 miles/dollar, free checked bag).
US Bank: Cash+ (utilities, phone, internet, restaurant, 5%; drugstores, 2%).
FIA Card Services: Fidelity Amex (everything, 2%); Fidelity Visa (everything, 1.5%).
Chase: Freedom (rotating, 5%); Amazon (Amazon.com, 3%); PriorityClub (IHG hotels, 5 points/dollar); Sapphire (not in use).

*All cards are registered with PriorityClub IDine program for 8 points/dollar at participating restaurants.

DavidNY
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Postby DavidNY » Sun Oct 14, 2012 9:22 am

kcarter609 wrote:Is Discover More a good option? Or should I have him apply for other cards first?


I think he should get a secured BofA card.

He might get unsecured credit, even if he has to call recon and get a $500 credit limit at least he'll have a start.

kcarter609
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Postby kcarter609 » Sun Oct 14, 2012 1:33 pm

DavidNY wrote:I think he should get a secured BofA card.

He might get unsecured credit, even if he has to call recon and get a $500 credit limit at least he'll have a start.


What's the benefit to a BofA Secured Card vs. the Capital One secured card he has now?



If me adding him to my accounts is a bad idea, are there any specific cards you can think of that he might be able to get approved for?

Active Cards:
Chase Freedom 10+10 Visa Signature ($9k Limit - 8/2012)
Chase Sapphire Preferred ($10k Limit - 2/2013)
Chase Ink Plus ($7k Limit - 2/2013)
Discover IT ($9.5k Limit - 10/2012)
AMEX Zync (No Pre-set Limit - 1/2010)
AMEX Blue Cash Everyday ($20k Limit - 1/2013 - Backdate to 1/2010)



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