Parents opened card... | TigerDroppings.com

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Joshjrn
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Baton Rouge
Member since Dec 2008
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Parents opened card...



Like many people, my parents added me to a credit card when I was relatively young to start building my credit. Also like many people, my parents proceeded to nearly max it out over the years. So, I'm in a bit of a quandary. On the one hand, it is increasing my credit age. On the other, it is throwing my credit utilization completely out of whack (it has me around 35% instead of near zero as I pay off my cards every month).

So, my question is whether it would be in my best interest to take the credit age hit now, or continue to allow my credit utilization to look far more risky than it actually is? I'm currently leaning towards the former as I don't have any plans to need my credit for the next few years, but I'm admittedly shooting in the dark.







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kennypowers816
LSU Fan
Houston
Member since Jan 2010
1863 posts

re: Parents opened card...


Ask them to stop putting so much on that one card.

Or ask your other CC provider(s) to increase your limit(s). If you are able to get your limits high enough on your other card(s), the one with your parents may not matter when it comes to utilization.






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Joshjrn
LSU Fan
Baton Rouge
Member since Dec 2008
5962 posts
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re: Parents opened card...


Haha I've tried that. Let's just say they aren't quite as financially responsible as I am.

As for upping my limits, that's a work in progress. I'm in my late 20's, so I can only move so fast in that respect, particularly with a very significant amount of student loan debt. A year or so ago, I was at something like 90% utilization



This post was edited on 3/20 at 10:06 pm


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foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
30038 posts

re: Parents opened card...


Sounds like you don't need that card anymore. I highly recommend getting your name off that card. The age of account hit isn't really that high and if you already have your own credit lines you don't need to have your credit affected by their (mis)use.





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Cmlsu5618
McNeese State Fan
Destin, FL
Member since Sep 2010
2471 posts

re: Parents opened card...


quote:

Like many people, my parents added me to a credit card when I was relatively young to start building my credit


Apparently I got the shaft here.






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Brightside Bengal
New Orleans Saints Fan
Uptown
Member since Sep 2007
2552 posts

re: Parents opened card...


I would think only a 35% utilization rate wouldn't really affect your score negatively. Is that correct?





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Teddy Ruxpin
LSU Fan
New Orleans, LA
Member since Oct 2006
19131 posts
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re: Parents opened card...


quote:

As for upping my limits, that's a work in progress. I'm in my late 20's, so I can only move so fast in that respect, particularly with a very significant amount of student loan debt. A year or so ago, I was at something like 90% utilization


As you know, I have student loans, turn 29 in May, and had maybe 15k in credit starting 2013.

I Have around 70k or so in credit now, so that could be done. However, I'd fear your parents doing something worse you can't protect yourself from, being late on payments.






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jso0003
Auburn Fan
Birmingham/Atlanta
Member since Jun 2009
4857 posts

re: Parents opened card...


Yea Id get your name off that card ASAP.





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Joshjrn
LSU Fan
Baton Rouge
Member since Dec 2008
5962 posts
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re: Parents opened card...


If I would get off, how would that work? Would a creditor really allow me to walk away from a debt I would otherwise be joint and severally liable for?





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ATOlurker
LSU Fan
Lafayette
Member since Sep 2005
200 posts
 Online 

re: Parents opened card...


quote:

If I would get off, how would that work?


Did you know they opened it in your name? It is basically identity theft and I think you would have to press charges against your parents to have it removed.






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htownjeep
LSU Fan
Nassau Bay, TX
Member since Jun 2005
5317 posts

re: Parents opened card...


quote:

Would a creditor really allow me to walk away from a debt I would otherwise be joint and severally liable for?

Ok, did they add you as an authorized user or opened an account in your name? The two are totally different.

If they just added you as an authorized user have them take you off. Then contact the credit bureaus and have it removed as well. You just have to start a file and it takes 30 days at most for them to investigate and take you off.

I'd get my arse off that card lickety split. Sounds like they had good intentions, but like you said they are not responsible with their credit.






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Joshjrn
LSU Fan
Baton Rouge
Member since Dec 2008
5962 posts
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re: Parents opened card...


I'm fairly certain I'm merely an authorized user.





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Joshjrn
LSU Fan
Baton Rouge
Member since Dec 2008
5962 posts
 Online 

re: Parents opened card...


Also, although it may sound naïve, I don't think they would ever miss a payment. It has been paid consistently for over a decade, even through times when they were far worse off than they are now.





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htownjeep
LSU Fan
Nassau Bay, TX
Member since Jun 2005
5317 posts

re: Parents opened card...


Length of credit makes up only about 10-15% of your score.

Debt ratio to available credit makes up about 30%.

Not really a hard decision is it?






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Joshjrn
LSU Fan
Baton Rouge
Member since Dec 2008
5962 posts
 Online 

re: Parents opened card...


It wouldn't be in five years. Today? Not so clear cut for me. Although utilization is valued more, I'm only at 35% and falling. On the other hand, closing it would take off a decade+ old account and leave me with my oldest account being three or so years old. That's a significant bit of youth being splashed on my credit report





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htownjeep
LSU Fan
Nassau Bay, TX
Member since Jun 2005
5317 posts

re: Parents opened card...


quote:

I'm only at 35% and falling.

Do you know hard numbers on this? And if so, would you mind telling us? Also, do you know your score of all 3 bureaus? If you know your score from each bureau we can probably tell you exactly what to apply for.

It may be in your best interest to get a new card with a decent limit just to lower the ratio and keep the history with your parent's card. I'd be nervous about them missing payments in the past or future though.






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Joshjrn
LSU Fan
Baton Rouge
Member since Dec 2008
5962 posts
 Online 

re: Parents opened card...


$8,000 used of $25,000 total. Now that I've looked at the numbers again, it looks like I'm closer to 30% than 35%, but my concern obviously remains.

As for getting new cards, I've gotten two in the past 9 months or so, so I don't want to get too crazy.

ETA: no, I don't know my scores, though I check my report yearly. I can say that credit.com has me estimated between 730 and 740, for what that's worth.



This post was edited on 3/21 at 10:20 am


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Teddy Ruxpin
LSU Fan
New Orleans, LA
Member since Oct 2006
19131 posts
 Online 

re: Parents opened card...


quote:

As for getting new cards, I've gotten two in the past 9 months or so, so I don't want to get too crazy


Not saying you should or shouldn't do this, but I got 7 in 13 months.

I think you're alright.






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htownjeep
LSU Fan
Nassau Bay, TX
Member since Jun 2005
5317 posts

re: Parents opened card...


quote:

ETA: no, I don't know my scores, though I check my report yearly. I can say that credit.com has me estimated between 730 and 740, for what that's worth.

It's worth the $60 or so to go to myfico every once in a while and pull all 3. That way you know for sure.

But it sounds like you're just fine if you're in the 730 range.






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htownjeep
LSU Fan
Nassau Bay, TX
Member since Jun 2005
5317 posts

re: Parents opened card...


quote:

Not saying you should or shouldn't do this, but I got 7 in 13 months

You beat me by two






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