How do I convince my younger bro 2 stop using his credit card so much AND to also stop applying 4 more of them

Question

How do I convince my younger bro 2 stop using his credit card so much AND to also stop applying 4 more of them

Answer 1

Tell him that if he ever decides to buy a house or any type of item requiring "secured debt" like a car he may not get approved. Lenders look at how much unsecured debt you have like credit cards, student loans and lines of credit. If his balances are high it WILL hurt his credit score and any future loan chances. If he does get approved he'll probably get a really lousy interest rate too. Don't get me started on the finance charges he's probably paying right now!

My husband and I both have mostly unsecured debt on our credit files, student loans and two credit cards but excellent payment histories on all and little to no balance on the credit cards. We went to buy a motorcycle and to get financing we had to provide a lot of extra info to the lender to get approved. We're both very frugal and have never needed to borrow money for a vehicle. We had the cash to buy the bike but need secured debt on our file to make it look like we're responsible when we try to buy a house in a few more years.

A few credit mistakes can cause a domino effect on your file, effecting desirability to lenders for years. My husband and I made no real mistakes other than having a thin file and we had to push hard to get a loan for $6500.00, despite having decent income and more than enough cash in the bank.

Answer 2

how is that any of your business  i think you drive too much how do i convince you not to drive so much lol ridiculous you cant

Answer 3

I gotta agree with Bdancer on this one!

Your bro is on his way to a train wreck financially.  First, you can try to convince him to sit down and draw up a budget.  See if he actually can afford all of this credit.

Have him visit some sites where people are looking for bankruptcy help, and see what mistakes they made to put them in that stop.  

But I suspect none of this will convince him that easy credit is bad.

Answer 4

Sit him down and explain that if there was an emergency how he wouldn't be able to pay his cards and how it will ruin his credit and make it hard to get a loan. Also explain how numerous inquiries can eventually make it hard for lenders to approve your loan because of the fact it seems you are risky because you are actively seeking new credit. Tell him you do not want him in financial trouble and think it is wise to only use the cards he currently has and can look to get another one a few years later once he needs it or becomes more financially sound

Answer 5

You can talk to him till you're blue in the face and it probably won't help.  Sometimes you just have to let people make their own mistakes.

The best thing you can do right now is to inform him that when his credit stinks from all that credit card debt, don't come to you for a loan or to co-sign anything.

Answer 6

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