My credit score. OUCH! - Page 2

[velochic]

Originally Posted by llamalluv

Once again, it depends on the creditor. And, it's still fraud. Legal fraud, but fraud nonetheless.

I've never viewed it that way. So, if I'm on dh's credit cards (even though now I only make about $600/month in my p/t job and he makes fantastic money)... that's fraud? What about the credit card that is mine from when I was working pre-family? Dh is on the account. Would you consider that fraud?

I'm just not really understanding what you are calling fraudulent if both people are responsible for any charges incurred on the account. I'm not saying you're wrong, just that I've never thought of it that way. Fraud to me is that you represent yourself as something you aren't. As long as the creditor knows all the details, how is that fraudulent?

[llamalluv]

Originally Posted by velochic

I've never viewed it that way. So, if I'm on dh's credit cards (even though now I only make about $600/month in my p/t job and he makes fantastic money)... that's fraud? What about the credit card that is mine from when I was working pre-family? Dh is on the account. Would you consider that fraud?

I'm just not really understanding what you are calling fraudulent if both people are responsible for any charges incurred on the account. I'm not saying you're wrong, just that I've never thought of it that way. Fraud to me is that you represent yourself as something you aren't. As long as the creditor knows all the details, how is that fraudulent?

No. You aren't on your husband's accounts as an authorized user solely to bump up your credit score. You are an authorized user for the convenience of your husband and your household. It comes down to INTENT.

And authorized users are NOT responsible for paying charges on the account. Only the account holder is responsible.

Fraud to me is that you represent yourself as something you aren't.

That's exactly what piggybacking is. They are deliberately misleading creditors into believing they are more credit worthy than they actually are. Someone who is piggybacking on an account is committing fraud. It should be illegal, but it's difficult to sort out who is a legitimate AU and who is committing fraud.

[Purple Sage]

:

[KaraBoo]

I have a great credit score and still I can't get a major credit card. You know why? Cuz I don't have a credit card. Crazy, huh?

I have to get a dept store card or something like that for a while and pay it continually. and THEN maybe my bank will let me have a card.

Credit is so weird.

[velochic]

Originally Posted by llamalluv

No. You aren't on your husband's accounts as an authorized user solely to bump up your credit score. You are an authorized user for the convenience of your husband and your household. It comes down to INTENT.

And authorized users are NOT responsible for paying charges on the account. Only the account holder is responsible.


That's exactly what piggybacking is. They are deliberately misleading creditors into believing they are more credit worthy than they actually are. Someone who is piggybacking on an account is committing fraud. It should be illegal, but it's difficult to sort out who is a legitimate AU and who is committing fraud.

I had never really thought of it this way. Food for thought. Thanks for explaining your viewpoint.

[KaraBoo]

Weird. A representative from my bank recommended just such a thing to me. As I said, I have a great credit score (don't want to share exactly but it's in the 800s). However, I couldn't get a credit card in my own name. He told me to get a dept store credit card and also get my husband to add my name to his credit card.

It's all so confusing. I just want a credit card so I can travel without DH and not have to use our household account. Also, I can't rent a car in my state with just a debit.

[lalaland42]

Originally Posted by llamalluv

Once again, it depends on the creditor. And, it's still fraud. Legal fraud, but fraud nonetheless.

Look, the whole credit score/credit report thing is fraudulent so I don't worry too much about it going in the consumers' favor once in a while. Infamous studies have shown that 80% of credit reports have at least 1 error on them. People in the know, who spend a lot of time correcting their reports, can have these erroneous items removed but it is a PITA and time consuming. It also seems rather arbitrary as to what you can have fixed and not really have much to do with reality. I am not crying a lot over the poor, poor duped financial system by these horrible piggybackers.

OP - It is stupid (IMO) to piggyback because if something bad happened to your dad's paying ability, you would have little recourse and it would effect you.

Go get a store credit card. Kohls and JCPennys seem to give out cards pretty easily. Make sure you make payments on any charges on it and only charge up to 30% of your available credit limit. You might want to get a car loan after your credit score goes up a bit. It depends on what you want your credit score to do.

And review your credit report and make sure there aren't any incorrect derogatory marks on it.

[JamieCatheryn]

Having a credit card with zero or very low balance and as reasonable high limit will help a lot. If you get it mainly to boost your score, or share on somebody's else's card just to boost your score, maybe somebody will call it fraud but really if you don't need a credit card anyway it's the only way to build a history. Just work with the system if you care at all what the record says about you. Then again if you can pay cash for everything then you'll never need credit, and consider yourself free of the whole vicious cycle, nevermind your score.

[MrsMike]

Thank you for all of the suggestions! I'm not sure I feel comfy piggybacking on my dad's credit. My parents have wonderful credit and I don't want to do anything to jeopardize it, etc. I do have a store card from Target. I paid it off two years ago, but it's still "open." I rarely buy anything there, though, but I guess when I do I'll try to use the card. I was turned down for a Kohl's card, which is okay because I shop there once or twice a year. I just applied to get 10% off a purchase. We are switching our bank in a few weeks. Our giant bank was bought out by another giant bank and the changes have been pissing me off. I spend $15 a month in "Service charges" for checking. We found out we are eligible for a credit union so we are going there. I will try for a secured card through them. A question: you have to put money up for a secured card...is that money gone forever? Or is that the money that is applied to the line of credit? I'm kinda confused on that one. I've never had a credit card, with the exception of the Target card, so I get easily confused. I am going to pull up my credit report and double check the items on there. What's the best site for that? And, I forget, how many times a year are you allowed to look at your own credit report?

[kmeyrick]

Originally Posted by llamalluv

No. You aren't on your husband's accounts as an authorized user solely to bump up your credit score. You are an authorized user for the convenience of your husband and your household. It comes down to INTENT.

And authorized users are NOT responsible for paying charges on the account. Only the account holder is responsible.


That's exactly what piggybacking is. They are deliberately misleading creditors into believing they are more credit worthy than they actually are. Someone who is piggybacking on an account is committing fraud. It should be illegal, but it's difficult to sort out who is a legitimate AU and who is committing fraud.

So long as the credit card is used and repaid, they don't really care. And someone piggy backing is showing that they are trustworthy in not abusing a card they wouldn't even have to pay for. It would be easy for the piggy backer to wreck the card owner's credit. I think fraud is a strong word. It's not a hill I would want to die on, anyway.

[llamalluv]

Originally Posted by lalaland42

Look, the whole credit score/credit report thing is fraudulent so I don't worry too much about it going in the consumers' favor once in a while. Infamous studies have shown that 80% of credit reports have at least 1 error on them. People in the know, who spend a lot of time correcting their reports, can have these erroneous items removed but it is a PITA and time consuming. It also seems rather arbitrary as to what you can have fixed and not really have much to do with reality. I am not crying a lot over the poor, poor duped financial system by these horrible piggybackers.

So, you are enjoying very much the credit crunch we are in right now, because sometimes a creditor reports an address wrong?

[llamalluv]

Originally Posted by kmeyrick

So long as the credit card is used and repaid, they don't really care. And someone piggy backing is showing that they are trustworthy in not abusing a card they wouldn't even have to pay for. It would be easy for the piggy backer to wreck the card owner's credit. I think fraud is a strong word. It's not a hill I would want to die on, anyway.

I'm not really sure where you are getting the idea that someone could use a card they are not in possession of and cannot obtain.

[llamalluv]

Originally Posted by JamieCatheryn

Having a credit card with zero or very low balance and as reasonable high limit will help a lot. If you get it mainly to boost your score, or share on somebody's else's card just to boost your score, maybe somebody will call it fraud but really if you don't need a credit card anyway it's the only way to build a history. Just work with the system if you care at all what the record says about you. Then again if you can pay cash for everything then you'll never need credit, and consider yourself free of the whole vicious cycle, nevermind your score.

That is absolutely not true. As several other people have pointed out, a secured credit card is an option.

[llamalluv]

Originally Posted by MrsMike

A question: you have to put money up for a secured card...is that money gone forever? Or is that the money that is applied to the line of credit? I'm kinda confused on that one. I've never had a credit card, with the exception of the Target card, so I get easily confused. I am going to pull up my credit report and double check the items on there. What's the best site for that? And, I forget, how many times a year are you allowed to look at your own credit report?

Here is the info about secured credit cards. Your own credit union may have policies that differ, however:

http://www.bankrate.com/brm/news/cc/19990823.asp

Basically, you will be opening a deposit account that will earn a small amount of interest, and in exchange, you get a line of credit you can borrow against. There are usually fees associated with secured credit cards, but this is the cost of rebuilding your credit.

My aunt and uncle did the opposite of this when they built their credit. The bank gave them a loan, and put the money into a CD. The loan was timed to be fully paid when the CD matured.


You can look at your credit report as often as you want, but you are entitled to one free credit report per year from each of the reporting agencies. go to www.annualcreditreport.com for more info.

[kmeyrick]

Originally Posted by llamalluv

I'm not really sure where you are getting the idea that someone could use a card they are not in possession of and cannot obtain.

If the owner of the card lists them as an authorized user, and the credit company doesn't mind, where's the crime here?

[Sarah W]

Originally Posted by PajamaMama

How is that credit abuse? It's not like the OP would be piggybacking on a stranger's credit...this is her father

Because they created a business out of it. People with good credit would be paid to add another person to a credit line they had in order to boost that 2nd person's score.

I don't think she meant the OP, but the situation in general. And she is correct, it will not work anymore to boost your score.

[llamalluv]

Originally Posted by kmeyrick

If the owner of the card lists them as an authorized user, and the credit company doesn't mind, where's the crime here?

If I add my sister to my credit card as an authorized user, and she never has possession of the card, never uses the account, never makes a payment, and is never responsible for that account - it is not her credit history, it is mine. If she then goes out to apply for a loan representing MY credit history as hers, that's a lie.

[jess_paez]

Originally Posted by llamalluv

If I add my sister to my credit card as an authorized user, and she never has possession of the card, never uses the account, never makes a payment, and is never responsible for that account - it is not her credit history, it is mine. If she then goes out to apply for a loan representing MY credit history as hers, that's a lie.

a few years ago i added my 16 year old bro as an authorized user-a little young for him at the time, but i was paying the payment online at the time and figured it would be there when he went in at 20 or so to get some kind of credit account open. He's 19 now, just went in to the bank he uses to get his own credit card and they showed *my* card on his report and said his credit was good, but it still wasn't his credit. so, it didn't affect him at all. boooo i was trying to help the dude. anyways, he ended up getting a limit of 7,000.00 on his first ever card! how does that happen? LOL at least he's smart with it.

[lightheart]

Could you get a loan at a bank, maybe use your dad as a co-signer, pay the car note off with it then make your monthly payments to the bank. Could use the car as collateral maybe?

I think using a person as a co-signer means you will get the credit history of making payments and the cosigner is just responsible if you were to quit making the payments.