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Old 03-01-2009, 02:33 PM
 
222 posts, read 472,747 times
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In 2002, my husband and I were just starting out and bought our first home. When we went to get a loan, the mortgage broker was surprised by how amazing our credit score was for being in our early 20's. It turns out that since my dad had gotten an American Express card with my name in his account for me, his outstanding credit counted toward my own credit. I was excited to hear that I had such a good score, and we got approved for a great loan. We sold the house a few years later when we had to relocate and have been renting for the past couple years.

Fast forward to today, my parents, unfortunately, have fallen victim to the current economic problems and might have to foreclose on their very, very expensive home. This is just as my husband and I are finally gearing up to buy our next home.

When we go to look for a loan, will my parents' credit continue to affect my credit? It was a blessing years ago, but now, obviously, it would mean that we might not be able to buy a home! Is there a way for me to fix this before we look for a loan?
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Old 03-01-2009, 03:08 PM
 
Location: Wake Forest, NC
835 posts, read 3,528,843 times
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It is easy to add someone to a credit card account like your dad did for you. You can't just add someone to an installment loan as it is a contract between parties with definitve start and end dates. If you did not apply for the mortgage wiht your parents it will not have any affect on you.
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Old 03-01-2009, 04:14 PM
 
222 posts, read 472,747 times
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Ok, that makes sense!

I guess the second part of the dilemma, however, is that I'm pretty sure that Amex account was closed due to problems paying it. I'm betting that their credit has taken a hit from that. Since my name is linked to that account, I guess I will be linked to the bad credit that way? Even if I hadn't used the card since I was in college?
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Old 03-01-2009, 06:32 PM
 
148 posts, read 492,763 times
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You should try to get copies of your credit reports from annualcreditreport.com and that way you will be able to see exactly what's on all three of your credit reports and won't be hit with any surprises when you go in to look for a loan. Also, if I'm not mistaken, accounts will either say "Individual" or "Joint" on them, so if it's a "Joint" account that shows negative, you may be able to explain that to the mortgage lender.
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Old 03-01-2009, 06:52 PM
 
Location: Long Island,New York
8,163 posts, read 12,821,358 times
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Quote:
Originally Posted by NCGator View Post
Ok, that makes sense!

I guess the second part of the dilemma, however, is that I'm pretty sure that Amex account was closed due to problems paying it. I'm betting that their credit has taken a hit from that. Since my name is linked to that account, I guess I will be linked to the bad credit that way? Even if I hadn't used the card since I was in college?
If this is the case it will take at least a year to fall off from the time it closed but not completely.
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Old 03-01-2009, 06:54 PM
 
Location: Long Island,New York
8,163 posts, read 12,821,358 times
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After pulling your credit you can dispute what you think wasn't yours and if you win the dispute it will be removed.Usually takes up to 30 days but alot of times will be removed.
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Old 03-02-2009, 07:02 AM
 
222 posts, read 472,747 times
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Thanks for the info. I should get right on that. Should be easy to prove in theory that I was not involved in paying that account since it was opened in the 70's, and I'm just turning 30 now!
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