What Do You Begin With?

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Replied by FrankN on topic What Do You Begin With?

Wanderer wrote: As :sick: my memory goes ... both are liable and can be pursued for any debt. This statement applies to joint accounts or where a person joins on the account as a co-signer. As a note, being a co-signer is something a person should carefully consider and if it is for family, look at it like you are going to "tip toe through the tulips" as it can have a devastating effect on the family if the relationship goes south ;)


Agreed. It would affect both signers.
1 year 10 months ago #1

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Replied by Wanderer on topic What Do You Begin With?

As :sick: my memory goes ... both are liable and can be pursued for any debt. This statement applies to joint accounts or where a person joins on the account as a co-signer. As a note, being a co-signer is something a person should carefully consider and if it is for family, look at it like you are going to "tip toe through the tulips" as it can have a devastating effect on the family if the relationship goes south ;)
Last edit: 1 year 10 months ago by Wanderer.
1 year 10 months ago #2

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Replied by JGibbs on topic What Do You Begin With?

FrankN wrote: You can add a co-signer to the credit card similar to when purchasing a home or taking out other kinds of debt.

Sure, but whose FICO score will it affect, both the parent and the child equally or only the parent since they'd have the main account?
1 year 10 months ago #3

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Replied by FrankN on topic What Do You Begin With?

You can add a co-signer to the credit card similar to when purchasing a home or taking out other kinds of debt.
1 year 11 months ago #4

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Replied by JGibbs on topic What Do You Begin With?

JacksonM wrote:
I think that one had my mom's name on it. It was a gas station specific card. Later, I was added to a Discover account, and that card did have my name on it. Unfortunately, it also made me responsible for the debt, which I found out when I applied for a car loan. It was straightened out fairly easily, but it was a shocker when I got the denial.

I hope I'm quoting correctly here. Is there a way to stop that from happening - build up your child's credit without making them liable for the debt as well. Maybe as a secondary card holder or something? I know your situation isn't the same, but I can see a parent trying to establish a strong FICO score for their kid, then losing a job and having it be disastrous.
1 year 11 months ago #5

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Replied by JacksonM on topic What Do You Begin With?

FrankN wrote:

JacksonM wrote: I was an authorized user of my mom's card when I was in high school, but it was just so I could put gas in my car.


Good thing you learned a valuable lesson when you were young. I am curious, did the credit card have your name on it or was it under your mom's name?


I think that one had my mom's name on it. It was a gas station specific card. Later, I was added to a Discover account, and that card did have my name on it. Unfortunately, it also made me responsible for the debt, which I found out when I applied for a car loan. It was straightened out fairly easily, but it was a shocker when I got the denial.
Last edit: 1 year 11 months ago by JacksonM.
1 year 11 months ago #6

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Replied by Joker on topic What Do You Begin With?

Actually, Discover was my first major credit card. I paid it on time and was soon offered other cards from other vendors. My career was just taking off and I was excited to get the credit. Unfortunately, I ruined it right at first but got control over things a couple of years later.
2 years 2 weeks ago #7

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Replied by FrankN on topic What Do You Begin With?

JacksonM wrote: I was an authorized user of my mom's card when I was in high school, but it was just so I could put gas in my car. I briefly had a card for a store, but only used it once before it went out of business. I don't recall the limit on my first ever card though I do remember being surprised by it since I had little to no history before getting it.

The main thing I was always told about credit was that it wasn't free money. It always had to be paid back and it was best to pay it every month. I stretched myself a few times in college, but I never missed paying it off.


Good thing you learned a valuable lesson when you were young. I am curious, did the credit card have your name on it or was it under your mom's name?
2 years 1 month ago #8

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Replied by JacksonM on topic What Do You Begin With?

I was an authorized user of my mom's card when I was in high school, but it was just so I could put gas in my car. I briefly had a card for a store, but only used it once before it went out of business. I don't recall the limit on my first ever card though I do remember being surprised by it since I had little to no history before getting it.

The main thing I was always told about credit was that it wasn't free money. It always had to be paid back and it was best to pay it every month. I stretched myself a few times in college, but I never missed paying it off.
2 years 1 month ago #9

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Replied by FrankN on topic What Do You Begin With?

Joker wrote: My parents did not believe in credit cards when I was growing up. (Boy I'm really old.) However, I started by direct depositing my check into my bank account (about 6 months) then applied for a small store card. After a few more months of paying correctly I was able to get a major card.


I don't have kids, but I would only give them a credit card when I know they are absolutely responsible enough to have one.
2 years 4 months ago #10

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Replied by Joker on topic What Do You Begin With?

My parents did not believe in credit cards when I was growing up. (Boy I'm really old.) However, I started by direct depositing my check into my bank account (about 6 months) then applied for a small store card. After a few more months of paying correctly I was able to get a major card.
2 years 4 months ago #11

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Replied by FrankN on topic What Do You Begin With?

My first credit card in college was with bank of america and was secured by my checking account. I had a very small limit and had to maintain a minimum balance of over $500.
2 years 7 months ago #12

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Replied by Wanderer on topic What Do You Begin With?

Oh, it dawned on me that what MIKEJ said is a great option and Discover Chrome Credit Card for students is a great way to start too. There are other lenders that offer student credit cards with a different underwriting standard to help getting started.
2 years 8 months ago #13

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Replied by FrankN on topic What Do You Begin With?

You have very smart parents! mine did the same thing.
2 years 8 months ago #14

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Replied by Tishbel on topic What Do You Begin With?

FrugalFran wrote: I know some people who started with a co-signer and moved on to having their own credit after a while. Personally, I started with store cards and worked my way up to major credit cards.

I was co-signed with my parents on a card for a couple of years before I reached the right age, which meant that I started with a good record. They put one transaction through and paid it off each month. There are also some banks that do "student" accounts and offers, designed for people with no credit record, that let students start building credit.
2 years 8 months ago #15

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