Will this hurt my credit?

Question

My mother filed bankruptcy previously in her life and is not able to get a credit card. I signed up for a Wal-Mart credit card and added her name to my account so she has her own card. She has it almost maxed out (which is only like $500) and only pays the minimum balance. Will this hurt my credit? Any info. is greatly appreciated. Thanks!

Answer 1

Yes it will affect your credit score.  It is mainly under YOUR name and you will be responsible for the balance.  Keep the account current and knock the balance down to under 200 as soon as possible.

Answer 2

Yes, it will hurt. Do not use more than $150 from $500 limit. To avoid common mistakes while buiding credit, I recommend this one - http://buildcredit.ifastnet.com - to monitor changes in you score and pre-estimate future scores for different scenarios of payments.

Answer 3

Her bankruptcy got nothing to do with your credit file but don't let her max out that walmart credit card and pay that on time.

Answer 4

Yes it will.  A card maxed up to the limit negatively affects your score.  Traditionally, it is suggested that any cards only have a balance of up to 35% of their limit.  If she is paying on time though - that affects your score iin a positive way.  I would say that since the card is small and if she is making the required payments on time you aren't affected too bad.  Your concern should also be if she finds out that she can't pay it - late payments are bad for your credit score.  Ultimately you are responsible for the entire debt that she has incurred as well.  Make sure you review regularly to make sure she is making all the required payments.

Answer 5

A high utilization rate or maxing out an account will bring your score down for sure....What you really want to watch for is your mother missing payments...this would wreck your credit.

Answer 6

Hi,

I used "Credit Solution" to settle my debt and recover from  bankruptcy.They managed to reduce my debt up to 58%.It's legitimate.I came across this company on NBC News Special Edition.Check it out here:

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Answer 7

It will not matter in the near future.

FICO is making a major change to the FICO credit score formula. This was announced by Fair Isaac Corporation. FICO scores will no longer factor authorized user accounts into their credit scoring formulas.

People that are listed as authorized users on credit card accounts will likely see a significant change in their credit scores when this modification takes place later this summer.

For most consumers, this change will have a negative impact on their credit scores. Only consumers who are listed as an authorized user on negative accounts or accounts that have balances that are close to the credit limit will possibly see an increase in their credit scores.

Adding a family member or friend as an authorized user on an existing credit card account has long been used as a way to establish credit. Many parents added their children as authorized users in order to help them build their credit history.

However, credit repair organizations have also started using this system as a way to fraudulently sell authorized user account access to consumers with credit problems. This credit repair loophole was part of the motivation for the FICO score change.

Hope this answers your question

LEGAL DISCLAIMER: The advice contained herein is for informational purposes only. It is not to be construed as Legal Counsel nor Legal Advic