Co-signing for your kids credit card,

[Locut0s]

That's exactly what the mom in the linked story did. She co-signed for a $1000 credit limit. The question is "did the credit agreement contain the standard 'terms subjest to change at any time' language which would allow the lender to increase the credit limit, and therefore the mother's exposure, without the mother's consent?" It probably did, but definitely worth exploring.

The one you have to watch out for is this one:

*In case something bad happens I agree that I'll be fucked no matter what and will not hold the CC company responsible for anything. I will also lick the CEO's(1) boots.

 

[PhoKingGuy]

OP just sucks at raising kids if he cant trust them with it.

My parents COsigned a lot of shit for me, I don't see any 24k bills anywhere.

 

[Tim_Derr]

A friend of mine is dealing with her daughter not paying on her auto loan that she co-signed on. Getting harrassing calls at work. All that good stuff.

If you want to help someone financially, give them money and be done with it. Co-signing is a good way to get fucked over.

agree 100%

 

[Clinkster]

That's exactly what the mom in the linked story did. She co-signed for a $1000 credit limit. The question is "did the credit agreement contain the standard 'terms subjest to change at any time' language which would allow the lender to increase the credit limit, and therefore the mother's exposure, without the mother's consent?" It probably did, but definitely worth exploring.

Can the lender increase your credit limit arbitrarily like that? I was under the impression the borrower had to ask/apply for such a thing (or at the very least, agree to such a change).

 

[highland145]

Can the lender increase your credit limit arbitrarily like that? I was under the impression the borrower had to ask/apply for such a thing (or at the very least, agree to such a change).

During better financial times, they often do. Same with reducing it.

 

[paperfist]

Shit I co-signed for my niece's credit card at 19, plus her college loan.

I never thought 20 years into the future when she might be broke and maxed out. Great!

 

[Locut0s]

Shit I co-signed for my niece's credit card at 19, plus her college loan.

I never thought 20 years into the future when she might be broke and maxed out. Great!

Why did you do this? She coudln't get them otherwise?

 

[paperfist]

Why did you do this? She coudln't get them otherwise?

Nope. The credit card was $500, no biggy, but so was the one the OP posted about which ballooned to $30k which is a biggy.

She's in her 2nd year of college and unfortunately her parents couldn't help her out. She's very responsible with her money and actions, but over 20 years I could see that changing as with anyone. I'll just have to stay pro-active and think about getting myself removed at least from the CC after she graduates.