Joint Credit Card Accounts

[gayl]

I'm an idiot. But it worked before!!

I had started Visa / Mastercard accounts for DS, DD, GS1 without a problem. I start the account with me being either joint owner or authorized user. I make minimum payments for 1 year but they charge / pay everything else off. Generally takes a few months for them to 'get it' and then able to get their own card or simply remove me. Not so for GS2. He has charged up to 2k and it's been months since he's made a payment. Just informed him I'm closing it in 30 calendar days.

[Koolau]

Clearly, it's a lesson for you. Hopefully, it will be a lesson for GS2. He should be thankful that you gave him a shot and he should be ashamed for failing to follow through.

[Sunset]

So GS2 just learned he can spend 2K and doesn't have to pay it..

I guess he saw the others and figured out the loop hole

Wonder what he will do once he has no CC, this could be interesting.

[RobbieB]

Well 2 grand is not a lot and good on you to "nip it in the bud"

I look forward to tales of the future.

Also good on you for helping them establish credit.

I had no credit before I got my first job and the Company set me up with a card. Gotta start sometime unless you're a Ramsey fan.

[grayv]

If someone dinged me for $2k, I might just be late on the closeout-final payment, so their credit report will not show perfect credit.


{serenity now}

[qwerty3656]

We were able to find credit cards for each of our sons just out of high school w/o a co-signer (I think the best option we found was at Capital One).

[Jerry1]

Good for you to try. Also good for you to draw a line in the sand. Now the hard part. Do you pay off the card and try to get GS2 to pay you back? Or, do you chalk it up to a gift and walk away. I’d chalk it up to a gift and not let $2K come between you and GS2. I know that doesn’t really teach him a lesson, but he understands he has messed up. Now it will be interesting to see if he rights his ship. Wishing you well on this.

[pacergal]

Always a great financial lesson, helping kids establish credit, using credit, and the importance of paying it off on time!

We never gave the kids their own card, but we added them as users to our gas cards as soon as they started driving. We figured there wasn't too much damage they could do at a gas station! :-)
Our DS thanked me not too long ago, good credit, great credit history of over 20 years.

[Sunset]

Maybe in the future other folks could suggest a secured credit card to the kids.

That way it's totally in the kids name, and is limited in how much can be spent. It builds credit history with less risk.

[qwerty3656]

Quote:

Originally Posted by Sunset Maybe in the future other folks could suggest a secured credit card to the kids. That way it's totally in the kids name, and is limited in how much can be spent. It builds credit history with less risk.

Now that I think about it, I think the cards we got our kids right out of high school were secured (e.g. put $250 on deposit and get maybe a $500 credit limit)

[Aerides]

Why give him another month? You can close it - or at least suspend it - right now.

[Sunset]

Quote:

Originally Posted by Aerides Why give him another month? You can close it - or at least suspend it - right now.

You mean before another 2K is spent

[MarieIG]

Hi Gayl - of course you're not! We each have our own style of teaching the younger generation. Sometimes it works out better than others.

Hopefully the $2,000 is the limit on the card and DGS2 can't put any additional charges on it?

Good luck.

[gayl]

Thing is he was paying it off monthly for a year before moving to LA. Then not 1 payment

And yes, limit is 2k. So thats a hefty birthday present next month

Adding: he requested a replacement card (lost) using my address. I'm tempted to not give it to him. Is that illegal?

[gayl]

Quote:

Originally Posted by gayl Thing is he was paying it off monthly for a year before moving to LA. Then not 1 payment And yes, limit is 2k. So thats a hefty birthday present next month Adding: he requested a replacement card (lost) using my address. I'm tempted to not give it to him. Is that illegal?

Decided to give him the card & let him try to charge (it'll be denied .... maybe a wake up). But still closing next month

[N02L84ER]

If he lost his card, are you sure he racked up the $2,000 in spending?

[MarieIG]

Did he give you an explanation as to why he stopped making payments when you told him that you were closing the card?

[gayl]

Quote:

Originally Posted by N02L84ER If he lost his card, are you sure he racked up the $2,000 in spending?

Yes. It's been building for 3 months.

Quote:

Originally Posted by MarieIG Did he give you an explanation as to why he stopped making payments when you told him that you were closing the card?

Nope. Actually I called him & it went to voice mail, called again & told him to make a payment, claimed he couldn't bc he lost his wallet but auto deposits / zelles payments, so I texted him that I was closing in 30 days. Open his own account or operate on debit card.

[Sunset]

If you are going to give him the new card, how sure are you that they won't just raise the limit so he can charge more...

They did this for my Sister, hit her max of ~$5K but wanted to still use her card, so the company raised it.

[Sunset]

Quote:

Originally Posted by gayl ... Adding: he requested a replacement card (lost) using my address. I'm tempted to not give it to him. Is that illegal?

Not at all, he is sending his mail to your place, it's fine to take care of it until he picks it up.