How to share credit
The credit is very valuable. Without good credit, it is very difficult to progress. People with good credit have done so because they have been responsible with their money: spend less than you earn, pay all your bills on time, and request new credit only when you really need. Achieving this is something that takes years.
Latin culture has much to do with it
In the Latin culture is very common share what we have with our friends and loved ones. “What little I have I share with you” is something you hear much. This is a very noble way of living and should be performed. But there are instances where we can share what you do serious damage to the person who gives, it receives and the families of both. This is the case with credit.
Share the credit: the case of John and Julia
John and Julia have fought for 15 years to have good credit. Then one day a cousin called John who is going through a difficult time and needs help. He asks John to be guarantor for a credit card. John, wanting to help his cousin, says yes. Six months later, the card is the limit, 90 days late payments and creditors are knocking at the door for John to pay. Or worse a good friend then asks for a credit card given to John because he did not qualify for one and he promises his cousin who will pay without fail. After not doing so, John and Julia are also responsible for the balance and your good credit is at risk.
In this case, everyone loses:
1. John and Julia damage their good credit, which will cost them more money in interest.
2. John and Julia are now liable for the debts accumulated by third parties (the cousin and friend.)
3. Even worse, John and Julia no longer qualify for the mortgage which had to finally buy the home of your dreams.
4. The cousin, and never had to fight to have good credit, he annoyed John and he stops talking, does not understand why John is more concerned about the bank by his cousin.
5. The friend, sorry, never talk to Juan and goes and keeps making the same mistakes with other friends.
Was it really good to share the credit?
No. The worst cases are those where a person with good credit applying for a mortgage to buy a house for a relative who has no credit. The relative lives in the house and repays the mortgage payments each month to their relative with good credit. When the person loses his job or decides not to keep paying the house, for that was that relative to good credit.
Good credit not be shared
It’s something that you yourself have to make have and have to cost you for that really values. When one receives something without spending, not value. And if they are willing to pay for it, you really deserve it? I think not.
But there are some cases where if it is good to share the credit?
Sure. If you have children under 21 years and want to have a credit card, the new law CARD ACT required to have a guarantor (unless they can show they earn enough money from your account to pay the card.) Being a guarantor in this case is a good idea.
Also in the case of persons spouses where one of us has good credit and the other has no credit. It’s okay to include your spouse as an authorized user on your account so you will establish good credit. From there you can request your own card.
Posted in 
Tags:
[...] Contact Us « How to share credit [...]