Does it work to build my credit history? - Posted by Romeo (NY)

Posted by julia on June 26, 2001 at 18:27:44:

I believe that it would not help Romeo to be an authorized user on her boyfriend’s card- she would only be helping him to build his credit. However, I have found that all of the credit cards where I am a joint account owner show up on my credit report. So, if Romeo and her boyfriend open an account together, that might help her. Better trust that boyfriend, though- a lot of people get burned when an ex-boy/girlfriend goes nuts with a joint credit card!!

Does it work to build my credit history? - Posted by Romeo (NY)

Posted by Romeo (NY) on June 18, 2001 at 12:03:40:

Hi, everybody. I have tried to have credit card; however, since I don’t have any credit history, I have rejected. I tried many different cards, but all I’ve gotten was “rejection” . My boyfriend suggested that he can add my name with his credit card which I won’t be use at all. If I use the credit card as much as I can and paid everything on time, will it help to build my credit history?

He said since the limit of the card is very low ($400), I can use for something which I usually pay cash such as food shopping. Then when I get the bill, all I have to do is just pay everything on time with the check with my name on it.

If anybody knows if it works, please let me know.
Thank you

Re: Does it work to build my credit history? - Posted by Ann

Posted by Ann on June 23, 2001 at 09:47:13:

Let me clarify my last response to you question. Also, in reply to (I disagree). My suggestion for Capital One and Providian unsecured credit cards was to say there are many starter cards out there just look to find the best one for you. Like the purchase of all consumer products from cd players to the purchase of a stove find the beat deal that works for you, but do you research/homework first. With that said, I did not not include Orchard Bank, because on a negitive experience. I had a Orchard Bank/VISA as a starter card. Once I reestablished my credit and got a Citibank card I called to cancel the card and the trouble started. Let me give you the details. In my phone call to cancel the card I stated that I would send a letter to follow-up. I sent a register/certified letter with the cut-up card inside. I got a phone call a week later asking why I was cancelling the card and making me a new offer to increse the credit limit. I stated that I want to cancel the card because of the high interest rate and asked if they would be willing to reduce the interest rate. They said no. I said thanks for all of your help and the opportunity to rebuild my credit. But, with the interest rate I had paid a fair price to rebuild my credit. One month later I received a new card in the mail with a higher credit limited but same interest rate in the mail. I returned the card. Now the plot thicken, I checked my credit and found that this remained an open account after three month of the request to close the account. Again, I wrote a letter to request that this account be closed. Remember at this point I had a never late history with this card on my credit when the account was closed. So, next I had another occasion to check my credit after being turned down for something. What I found was Orchard Bank report account closed and 30days late. Account closed on your credit report is different then closed at the request of cardholder and I was never late. It took another six months of writing letters to get this corrected. Honest mistake by Orchard Bank or retaliation? They make money from folks serious about reestablishing credit and understand that a starter card is just that a starter card. The point being look around for the best starter card that fits your needs and understand all
cards have high interest some more or less shop…shop
Now, the response to your other question. There is no benefit to you as being a user on your boyfriends card.
If you were married it would be different. The credit company only reports to the credit agencies the primary card holders payment history. Check with your state office of Attorney General, Department of Consumer Affairs or similar office and ask about credit reporting. Also, call one of the major credit agencies TRW or Equifax and ask the question.
I hope this adds some clarity to my previous response.
Everyone has different experiences and needs the more information the better. Good Luck

I disagree… - Posted by Sean

Posted by Sean on June 20, 2001 at 13:07:49:

…with all of the previous people. It certainly COULD improve your credit to have your name as an authorized user on a card (although it is not guaranteed) and I certainly don’t recommend Providian or Capital One. I would recommend Orchard Bank as a good place to go to get a less expensive starter card.

Getting a CD-secured loan at a bank is very difficult to do and there’s no guarantee that anything will be reported on your credit.

Re: Does it work to build my credit history? - Posted by Ann

Posted by Ann on June 18, 2001 at 23:00:24:

Try Providian or Capital One for credit cards. Using your friends credit card will not help you build credit. You can find these online.

Re: Does it work to build my credit history? - Posted by Jason

Posted by Jason on June 18, 2001 at 17:10:52:

Try buying a CD from the bank you use, say a 3 month CD for $1000. then go to the loan officer and ask to borrow 1000 using the CD as collateral. Using the money you borrowed to make the first two payment ON TIME and pay off the loan before it is due (just a week before). Bang, you have started established a good standing. As soon as you finish do it again…
now you have taken two loans paid them off on time, even early. Now try doing it for a third time but this time do not buy a CD first, try to get the loan on just your signature…

Good Luck

Re: Does it work to build my credit history? - Posted by Bruce Lawson

Posted by Bruce Lawson on June 18, 2001 at 14:42:44:

Hi Romero,

There is no guarantee that if you get added to your boyfriends credit card it will help you. The law does not require credit card companies to report information, it only requires that the information be accurate. Your boyfriend can try it and see if the information gets reported on you.

My suggesstion would be for you to try a secured credit card. These types of credit cards limit your balance to your deposit into the bank, eventually with a good paying history your secured status will go to a regular status.



Bruce Lawson