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Author: Larissa919 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 308882  
Subject: Rebuilding My Credit Date: 6/11/2001 11:04 PM
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Hello Everyone. I'm a member of this board however I haven't posted in a while. Can anybody answer my question?

I'm a college student who opened too many credit cards and have a few of them that were charged off. Since I'm still in school I vowed to myself that I would not let these debts go for too long without being paid. It is now summer vacation and I want to get a job so I can pay them off. I was wondering if after I did pay them off would it be possible for my mom to get me a card using her credit that would also help me rebuild my credit? Please help. Thanks in advance.

I was also thinking about getting a secure credit card after clearing up all this mess. IF the first option is possible, which is the better choice to make and why? Thanks again.


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Author: Abbaree Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 75726 of 308882
Subject: Re: Rebuilding My Credit Date: 6/11/2001 11:14 PM
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I think the best option would be a secured card in your name, this over time will help build your credit back up, also as time goes by these delinquent accounts will have less of an impact on your scores. You can still have your mother add you to one of her cards as an "AU", just make sure they report "AU", most major banks and retail cards do.

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Author: Larissa919 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 75727 of 308882
Subject: Re: Rebuilding My Credit Date: 6/11/2001 11:18 PM
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What is an AU? Also when she adds me as an "Additional User" I guess, do they have to check my credit report also?

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Author: warrl Big funky green star, 20000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 75728 of 308882
Subject: Re: Rebuilding My Credit Date: 6/11/2001 11:19 PM
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I would say that, for now, a usable credit card would be a bad idea for you.

Pay off your existing debts first.

Then, I really think that a secured credit card would be smarter for you AND for your parents, than getting a joint card with your parents. With a joint card, it's too easy to create a situation where your parents pretty much have to bail you out. And that's the beginning of a road to ruin. (Get "The Millionnaire Next Door" from the library and read chapter 5. Read the rest too, but particularly chapter 5.)

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Author: FixitWoman Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 75751 of 308882
Subject: Re: Rebuilding My Credit Date: 6/12/2001 6:27 AM
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What is an AU? Also when she adds me as an "Additional User" I guess, do they have to check my credit report also?

AU = Authorized User

No, they won't check your credit to make you an authorized user.

Kim

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Author: aja91 Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 75757 of 308882
Subject: Re: Rebuilding My Credit Date: 6/12/2001 8:36 AM
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Hello Everyone. I'm a member of this board however I haven't posted in a while. Can anybody answer my question?

I'm a college student who opened too many credit cards and have a few of them that were charged off. Since I'm still in school I vowed to myself that I would not let these debts go for too long without being paid. It is now summer vacation and I want to get a job so I can pay them off. I was wondering if after I did pay them off would it be possible for my mom to get me a card using her credit that would also help me rebuild my credit? Please help. Thanks in advance.

I was also thinking about getting a secure credit card after clearing up all this mess. IF the first option is possible, which is the better choice to make and why? Thanks again.


I like the idea of getting the job during the summer. You should also consider working during the school year to continue paying off the cards. Working and sending most of your paycheck to Visa and MasterCard will likely build memories to prevent you from overcharging again. ;-)

If I was your mother, I would actually not go for the idea of cosigning on a card for you. If something goes wrong, and for some reason you are unable to pay off your cards again, her credit gets tarnished too.

In terms of improving your credit rating, paying your obligations in full on the remaining cards will help. Get yourself down to one open card with no balance, and have the creditor keep the limit low. When you charge something, deduct the amount from your checking account right away. (Record it as check number AAA, BBB, etc and deduct it as usual). In this fashion when the bill comes you'll have enough set aside to pay the bill in full. If there's not enough in your checking account to buy something, don't put it on the card! If you put too much on the card and your checking balance goes negative... well, hope the pantry is stocked well. This is a tool to teach you how to use the card in a disciplined fashion, and it can be tough at first, but eventually it becomes second nature. Keep at it and it will work out for you.

Hope this helps.

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Author: buckzimmer Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 75770 of 308882
Subject: Re: Rebuilding My Credit Date: 6/12/2001 10:20 AM
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Too many times getting a credit card for simply "I want to rebuild my credit", means "I just want another credit card."

How do you know the difference? The person who wants to rebuild credit and be responsible has an emergency fund in savings. How much is your's?

Fred

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Author: email4laura Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 75782 of 308882
Subject: Re: Rebuilding My Credit Date: 6/12/2001 11:22 AM
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>>Too many times getting a credit card for simply "I want to rebuild my credit", means "I just want another credit card."

Fred's right.

If Larissa's still in school, I suspect more bills will roll in. It's not easy to pay off old credit card debts without a steady job.

It's wiser to stop the madness now. Don't get another credit card. Don't drag your parents into this by using their credit cards.

The obvious lesson is learning how to control your spending and living within your means. There are several ways to build up "good" credit. Having too many open accounts isn't the way to go.

If you're really worried about your credit rating, order your credit report to see what's on it. Make sure any "forgotten" accounts are closed (example: that Sears Account you've may have signed up for to receive 15% off your current purchase...I hate stores that do that).

Good luck and be wise about this.


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Author: EMTneeded One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 77611 of 308882
Subject: Re: Rebuilding My Credit Date: 6/20/2001 7:37 PM
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I would get the secured card and the Visa Buxx card with your mom.
She authorizes a set amount and you spend it if you need to. An all out card could be bad at this moment in time. You could also try to get a bigger student loan to pay them all off and start saving.

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