I need some advice and clarification on this. So, quick backstory on the matter. My mom filed for bankruptcy 5 years ago (the kind where her wages were garnished for 5 years until what was owed was paid off). It's been about 8 months since her garnishments ended and is able to start over with a clean slate.
However, she's got it in her head that she needs to buy a house...with no down payment and after just finishing dealing with a bankruptcy. I think this is a terrible idea. I asked her how is she going to afford expensive home repairs if she has no money? She said that she's just going to buy the warranties available when buying the house.
Now, because her credit is now back to zero, she's not going to be able to get a loan for the mortgage. Her lawyer (or whoever handled the case for her) told her that a good way to get some credit back quickly is to have her name added to a credit card of someone with good credit. That way she builds up credit and then she can apply for the loan. That's when she called me.
Basically, she's asking if I can add her name to my credit card as an authorized user. She will not have access to my bank account, credit card, or anything like that. It's basically just a way for her to build credit based on my own utilization rate.
I asked her if when she applies for the mortgage, if it's my credit that gets used if I do this, she says no. I plan on calling my bank tomorrow about this since the credit dept. doesn't work weekends. But considering my mom's history with bankruptcy and huge amounts of credit card debt in the past, the idea of sharing my credit with her in general makes me uneasy. I love my mom, but I think the fact that she even has to ask for her daughter to share her credit with her after a bankruptcy to buy a house means that she shouldn't be buying a house. I sort of tried insinuating that she shouldn't, but she's stubborn.
Is there any way that this will hurt my own credit by adding her name to my credit card in order for her score to go up until she's ready to apply for a home loan? She has again told me that she will not be using my name or credit when applying for the home loan, that this is merely so her own credit score will go up so she can apply for the loan when her score has gone up some after some months. Please advise!
Submitted October 14, 2018 at 10:13AM by parachutes_alive https://ift.tt/2OYZ8NJ
