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Thread: Great news! Responsible credit card users will subsidize deadbeats

  1. #16
    Super Moderator Tati's Avatar
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    ^ I'm pretty sure it would all go towards her credit. Whoever the account holder is.
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  2. #17
    Elite Member RevellingInSane's Avatar
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    Quote Originally Posted by L1049 View Post
    My mother did something similar with her mastercard. We recently sold our house and she was going to use some of the left over money from the sale to pay off her card (but keep it...she said fuck visa though, long story) .
    The bank gave her a tip and said something along the lines of, "don't pay it all off, but pay off just enough and get the balance down enough to where monthly balance is manageable/easier to pay each month." The idea was that your credit rating will get better if you pay the balance each month rather than paying it all off at once*
    They didn't give her a tip. They kept her in debt and made sure it will increase every month due to interest accruing on the balance she was told to leave on the card.

    I'm sorry, but this is the reason legislation was needed. No offense to anyone, including your mother, who is but another victim of the slimy financial institutions, but there are too many people who are not knowledgeable, by no fault of their own, enough to properly handle credit, relying on the very banks who profit from them to advise them. The bank rep is going to do whatever it takes to make a buck, not what is in the best interest of the consumer.

    If your mother is still in a position to clear the balance, she really should do so and look into ways to keep the account, while maintaining and growing her credit, but paying no interest. There are ways, but the bank is NEVER going to divulge them.

    I was going to ask someone at my bank, but maybe one of you can answer this for me.
    You know how a card holder can get extra credit cards for their kids/spouse/whatever right?
    If my mother (the account holder) got another card and put it under my name, would any activity under the card in my name go towards her credit, or would I be building up my own credit?
    That depends on several factors. Will the bank allow her at this time to add someone to the account? If so, will the person be declared a joint account holder, with equal responsibility, ownership, and thus liability, or as an authorized user, who has the right to charge to the card, but ultimately is neither responsible for the payment nor given the ability to make decisions regarding the account? Does the institution your mother uses allow second party secured cards, such as ones given to young people, which have, usually a parent, as the guarantor, who pays if the account owner fails to do so? If so, what are the stipulations?

    If you have no credit or poor credit, not saying you do or don't, speaking hypothetically here, would you meet the guidelines for acquiring a credit card, even with the assistance of an account holder in good standing with good to excellent credit? If the qualifications are met, would she suffer adverse affects due to changing the account, if allowed? If she opened a second account with you, would she find her primary account experiencing changes due to the addition of another account, which in turn can change her credit rating, thus more possible liability?

    The red tape is insane.
    Last edited by RevellingInSane; May 21st, 2009 at 09:47 AM.



  3. #18
    Elite Member L1049's Avatar
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    That depends on several factors. Will the bank allow her at this time to add someone to the account? If so, will the person be declared a joint account holder, with equal responsibility, ownership, and thus liability, or as an authorized user, who has the right to charge to the card, but ultimately is neither responsible for the payment nor given the ability to make decisions regarding the account? Does the institution your mother uses allow second party secured cards, such as ones given to young people, which have, usually a parent, as the guarantor, who pays if the account owner fails to do so? If so, what are the stipulations?
    I'll ask about this, thanks for the tips on the 'questions to ask'

    I don't know if it makes a difference, but when I said 'bank' I should've said 'credit union' (don't know if it makes a difference when it comes to credit cards)
    But I don't think the credit union has anything to do with the credit card (which is through capital one)?
    Like I mentioned, I don't know the exact details, but it came up in discussion when doing the new mortgage with the credit union.

    Oddly enough, despite horror stories, my mother has nothing bad to say about Capital one/mastercard. They've been incredibly good to her.
    Visa and CIBC on the other hand That card she paid off in full after the sale of the house. I'll be surprised if she doesn't send in the card, cut in pieces with the words "FUCK YOU" written on the back.

    I mean, my mother will be the first to admit that she got in over her head in some regards. When my father moved back in about 2 years ago, they re-mortgaged the house and put a lot of shit on the credit cards, basically went into debt for him. My father fucked up again, and she finally said 'GTFO' for good. We sold the house, paid up the cards, and she's getting back on track. I've never seen her so 'giddy.' She managed to get a mortgage in just her name, get all of the bills in her name, and is essentially on her own for the first time in damn near 30 years, and I've never seen her happier. The funny/ironic thing is, my mother's credit rating rose dramatically in the 6 months after my father left than it ever was before. It's higher now than it was when he was in the (financial) picture.
    Last edited by L1049; May 21st, 2009 at 06:46 PM. Reason: Spelling is gud!!

  4. #19
    Elite Member RevellingInSane's Avatar
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    Quote Originally Posted by L1049 View Post
    I'll ask about this, thanks for the tips on the 'questions to ask'
    No problem. Those questions are basic questions anyone entering into a credit card contract should ask, but can't cover everything, so do your research.

    I don't know if it makes a difference, but when I said 'bank' I should've said 'credit union' (don't know if it makes a difference when it comes to credit cards)
    But I don't think the credit union has anything to do with the credit card (which is through capital one)?
    Like I mentioned, I don't know the exact details, but it came up in discussion when doing the new mortgage with the credit union.
    If it is a credit union, the card could be handled by any number of companies, which could be subsidiaries of who knows what bank. Credit unions have some advantages, but some disadvantages to, where credit cards are concerned.

    Oddly enough, despite horror stories, my mother has nothing bad to say about Capital one/mastercard. They've been incredibly good to her.
    Visa and CIBC on the other hand That card she paid off in full after the sale of the house. I'll be surprised if she doesn't send in the card, cut in pieces with the words "FUCK YOU" written on the back.
    Capital One tried to pull a bait and switch on me years ago. Maybe they have changed since then.

    I mean, my mother will be the first to admit that she got in over her head in some regards. When my father moved back in about 2 years ago, they re-mortgaged the house and put a lot of shit on the credit cards, basically went into debt for him. My father fucked up again, and she finally said 'GTFO' for good. We sold the house, paid up the cards, and she's getting back on track. I've never seen her so 'giddy.' She managed to get a mortgage in just her name, get all of the bills in her name, and is essentially on her own for the first time in damn near 30 years, and I've never seen her happier. The funny/ironic thing is, my mother's credit rating rose dramatically in the 6 months after my father left than it ever was before. It's higher now than it was when he was in the (financial) picture.
    Hell yea! I'm happy for her! Tell her to enjoy the single life and the financial freedom she has found with it.

    Good luck to you both.



  5. #20
    Elite Member sparkly's Avatar
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    Quote Originally Posted by L1049 View Post
    I'll ask about this, thanks for the tips on the 'questions to ask'

    I don't know if it makes a difference, but when I said 'bank' I should've said 'credit union' (don't know if it makes a difference when it comes to credit cards)
    But I don't think the credit union has anything to do with the credit card (which is through capital one)?
    Like I mentioned, I don't know the exact details, but it came up in discussion when doing the new mortgage with the credit union.

    Oddly enough, despite horror stories, my mother has nothing bad to say about Capital one/mastercard. They've been incredibly good to her.
    Visa and CIBC on the other hand That card she paid off in full after the sale of the house. I'll be surprised if she doesn't send in the card, cut in pieces with the words "FUCK YOU" written on the back.

    I mean, my mother will be the first to admit that she got in over her head in some regards. When my father moved back in about 2 years ago, they re-mortgaged the house and put a lot of shit on the credit cards, basically went into debt for him. My father fucked up again, and she finally said 'GTFO' for good. We sold the house, paid up the cards, and she's getting back on track. I've never seen her so 'giddy.' She managed to get a mortgage in just her name, get all of the bills in her name, and is essentially on her own for the first time in damn near 30 years, and I've never seen her happier. The funny/ironic thing is, my mother's credit rating rose dramatically in the 6 months after my father left than it ever was before. It's higher now than it was when he was in the (financial) picture.
    I'm so happy for your Mom! Give her all the encouragement she needs- it sounds like she's only looking forward from here on out.
    Everyone is entitled to be stupid, but some abuse the privilege.

  6. #21
    Silver Member albatross's Avatar
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    Quote Originally Posted by darksithbunny View Post
    If you pay off a credit card, do not cancel or close the account. It will screw with your credit rating. It will actually drop points. Crazy but true.

    Some credit card companies have so that if you pay off an account and the account just stays at 0 for 2 years, they will close it but it won't hurt your credit score.

    Just found this out the other day.
    It doesn't matter if you or the bank closes the account, it can affect your credit score. For one, it decreases your debt-to-credit ratio - that is the amount you owe vs. the total amount of credit you're offered. Also, it closes part of your credit history, which is another factor in your score - older accounts are better than new ones because they show a longer history of paying your bills.

    For example, let's say you have 2 credit cards, each with a $5000 limit. Your total outstanding balance is $2000. That puts your debt-to-credit ratio at 20%. Now, assume one of those cards is closed for inactivity - that causes the debt-to-credit ratio to double to 40%, which is going to lower your credit score. (I've read a couple of articles that say that there is threshold at 30% - staying below that is good, above that hurts your score).
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