When DH went off to college, his parents added him to their credit card and gave him a card for emergencies - car repairs, hospital visits. After college (and DH & I got married), they just kept him on the card as it would help his credit. We had some financial issues in our first year of marriage, and consolidated some medical bills onto the card with his school loan. We've paid it off but they've used it for their own uses in the past 3 years, including buying their new van -- that's a long story; it was actually the smartest of all options available. DH had to sign off on a credit check for this new job he's been offered and when we went online to check it ourselves, we found that he was still on his mom's card and it looks like we have $15,000 in cc debt when we don't. It's all his parents, but his name is on the card. His mom said it's smart to just leave his name on it because they're making the payments on time and paying way more than the minimum due, so it builds his credit. But does it show negatively that we have $15,000 in cc debt when WE don't. We have a VISA card with a small balance on it that we're paying off tomorrow. Is this the best way to build up our credit? To have his name on this card? I'm confused and they're all "this is the best way" and without any knowledge of whether it is or not, I don't feel at peace about it. I'm not saying that they're going to miss payments or anything, but his father was out of work for 1.5 years on worker's comp and now he has to take off 5 weeks UNPAID for a knee replacement. They're going to live on just my MIL's salary and she doesn't make nearly what they need to pay all the bills, including their mortgage. And even in the face of that, she didn't feel like she should scale down with Christmas (whole other thread!). What happens if they have to put a week's worth of groceries on that credit card? Then it'll look we have MORE debt. *sigh* Is this the best way to do this? My mom says just to use our VISA and build our credit by doing little things, like getting a tank of gas with the card and then going online and paying it off right away. Who is right???

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~~Amanda~~
Mommy to one Little Man (3 1/2 yrs old), FINALLY expecting #2!!! (due around Memorial Day 2009) *adoption has been put on hold*

OK, I'm no expert, but I don't like this one bit! First of all, if you look at your credit report right now it shows you have a lot of debt, it may not be yours, but it sure looks like yours! The only way I see this situation benefitting you is if you ILs were paying it off in FULL each month! Then it would look good on your credit report, the fact that they're making payments is great, but not NEAR as good as paying it off in full! I see this as a bad deal right now! I also think it could quickly turn worse! Say they make a few late payments, sure they probably won't but if something comes up, they might! This now would show as YOU making late payments - not good! OR, God forbid something ever happened to them, I'm pretty sure that debt is now yours to repay! From what I understand, if it's in their name only it gets paid thru their estate. Once the money is gone it's just written off. If it has your name on it, it would just be yours I'm assuming! Like I said, I'm no expert, but this is how I would think it would happen!

Of course getting it OFF your credit report is probably not easy either! I'm betting your ILs would have to call the credit card company, have your names taken off the card and then maybe sign something stating that the debt is all theirs??? I don't know about that one!

Either way, I agree with your mom! You may not be able to get a credit card with as high of a balance, but after paying it off in full each month they'll quickly start raising the limit (in my experience)! Of course be VERY careful to not run it up! That wouldn't be good either!

Once again, I'm no expert, maybe someone else will know for sure about this stuff, but it does NOT sound like a good deal to me! I'd say go with your gut and get out of that!!!

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Stay at home mom to my 3 boys... ages 5, 3 & 1!

I can do all things through CHRIST who strengthens me. Philippians 4:13

hmmm, I wonder if the want your dh on the CC because they can't get one without him. The only way for your dh to get his name removed is for them to apply for another card and then transfer the balance, the CC company won't remove your dh's name because they will have to do a credit check on your in laws and reasses their credit risk without your dh's income.

Personally I would push the issue, especially since you don't control any of their spending or their repayments. The issue that would concern me most is that if something were to happen to your in laws your dh would be responsible since his name is on the card. Also, if you are planning on buying a house or car having $15,000 unsecured CC debt could affect your interest rate and/or the ability to get the loan.

I would agree that you need to push the issue to get dh off that card in any way possible.

If you are not able to do that, then please consider finding out what the monthly payment is. Put that amount of $$ aside every month so that if something does happen to your inlaws (job loss, medical emergency, death) and they are unable to pay for the bill you are at least able to make payments so that dh's credit isn't runied any further. If (God forbid) they both die at the same time dh will be solely responsible for the bill. Assuming you have had several months (years) of payments set aside you can make a large payment against the principal and then continue making monthly payments in the amount you had been saving. Your savings amount will likely be much more than the minimum payment which would be a good thing (but you probably already know that).

If you assume the worst is going to happen now, then you can be prepared. If nothing happens, and they get that card paid off then again push the issue to get dh off it. Then you will have your savings to do with what you want.

Good Luck!!

If the CC debt is showing up under your DHs Name , Then it is Classified as Your Debt too!

If your inlaws could no longer pay this .... you Guys would Be equally Responsible. Same as the way When you had debt on the card , His Parents had to carry that under their Name too.

Credit card companies don't care who Charges what. The Owners and Co owners of the account Are responsible for that amount.


Now I don't Really care about how much the debt is ... I don't know what your credit looks like otherwise, thats not the issue
But as an employer or anyone who pulls your credit , I don't think they would Care if you said it was or wasen't yours , They are looking to see good and bad credit.

If your inlaws stop paying tommorow- They will come after DH
I am an authorized Buyer on my Moms Bon ton account - It started YEARS ago - and I just kept the card.... None of that shows up on my Credit report though. Even though its all good... I am not responsible for the account.

[quote][The only way for your dh to get his name removed is for them to apply for another card and then transfer the balance, the CC company won't remove your dh's name because they will have to do a credit check on your in laws and reasses their credit risk without your dh's income.
/QUOTE]


This is true! I was going to add this. I don't think your DH can just walk away from the Debt at this point.

Well, you DO owe that money - - - if your in-laws don't pay.

Yes, how credit scores are calculated is sort of a black box. However, as far as I know, as long as that credit card isn't maxed out, having a balance isn't hurting you - much. The issue is the debt-to-income ratio. Let's say your income is $40,000 per year and the credit bureau figure you can handle unsecured debt equal to your annual salary (scary, I know). And you decide you want to buy new furniture or a new computer or something. That $15K will be deducted from your entire available credit. PLUS as you get closer to your total debt limit, credit companies will start to charge you higher and higher interest rates.

In other words, when you didn't have any credit in your name, I'm sure being on the card helped. Now that you can get your own credit and have a steady income (2 years or more), it is possible you would get a better interest rate if you didn't share that card.

Personally, I wouldn't press to have hubby removed, but I would keep an eye on the situation AND ask hubby what he wants to do.

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"I've been rich and I've been poor but independently wealthy is where it is at."

I was going to add - if you ever try to get a home loan (if you don't have one already or try to move) the $15,000 would be included on your debt/income ratio and you would not be approved for as much as you might be otherwise!

I would for sure get DH off that card! I'm not sure how to do it without making them mad, maybe by explaining that if something happened to them you don't want to be responsible for the debt! Also, maybe they can get a better rate by transferring to a new card, etc!

I agree with an above poster - if you aren't gonna get his name off the card FOR SURE start saving just in case it falls to you to pay for it! Still though, if you don't get his name off now it'll probably be on there till they're gone. So maybe they'll pay off this amount, maybe not, they could even add more! And of course you won't know unless you just keep checking your credit report!

I think this is dangerous to your credit score and you should get this taken care of ASAP!!! JMO!

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Stay at home mom to my 3 boys... ages 5, 3 & 1!

I can do all things through CHRIST who strengthens me. Philippians 4:13

how can He can do this now??

Isn't It technically his debt too??

Yep, technically it is his debt too now, but if his parents are honest about it, like they seem to be, then they can get a new card in their name only and transfer the debt, then close the old account! At that point it would no longer be his debt, right?? This is the only way I see to resolve this without losing any money!

I really hope it works out for you, flybygrace!

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Stay at home mom to my 3 boys... ages 5, 3 & 1!

I can do all things through CHRIST who strengthens me. Philippians 4:13