Helping family without giving money

[GoodSteward]

My brother, who's been living with his in-laws for around 7 years, is FINALLY getting an apartment. My sister in law has issues with her parents, and she has been staying with my parents in GA for the last four months with their four girls. It's been hectic. They both have terrible credit thanks to their own choices. His score was low 500s, and that has been one of the primary reasons he couldn't rent (I never hear Dave Ramsey talk about that when he is hating on credit scores). Well, instead of giving money or cosigning for my credit(not with his history, they ruined the last apartment and was sued!) I have instead added him to my credit card I use and pay off, but NO card access. It added my history as well as credit limit to his credit rasing it 70 points to be around a 620. I guess that was enough, and he got approved. Now if he can figure this out and not have to move back in with someone again. He is my older brother and is 35.

I've had so many face palm family moments I'm surprised I don't look like spongebob.

[disneysteve]

I have instead added him to my credit card I use and pay off, but NO card access. It added my history as well as credit limit to his credit rasing it 70 points to be around a 620.

This is a perfect example of how meaningless credit scores really are. The fact that his score jumped 70 points when he did absolutely nothing really makes no sense. He is not any less of a credit risk than he was before you did that. Don't get me wrong. I think it's great that you were able to help him in that way. It just shows how twisted the system is.

As for Dave Ramsey, in his world, you would have no trouble finding a landlord who will rent to you without relying on a credit check. The same goes for getting a mortgage.

[DaveInPgh]

Prior to getting married, I added my sister (oldest sibling) to my credit card to help improve her score. She had card access but was not allowed to use it without asking me first. A little riskier on my part, but it worked out fine and had great credit when it was time for her to buy a house.

Years later she co-signed on her daughter's mortgage. She was pregnant, without a job, and engaged to a guy who wasn't the father of the baby. Things were okay until she had the baby and started nagging her fiance about working too much overtime. A man not trying to make extra money to go out drinking with the guys, attend sporting events, or anything at all for himself. A man trying to make money to make sure the mortgage was paid and the baby was well cared for.

So yeah, her unappreciative @ss eventually drove him away and she was left with a mortgage payment she had no income to afford. My sister covered both for a short period of time but the property was eventually foreclosed and my sister's credit damaged again.

Now that I am married, no one asks for help. Just how I like it!

[GoodSteward]

This is a perfect example of how meaningless credit scores really are. The fact that his score jumped 70 points when he did absolutely nothing really makes no sense. He is not any less of a credit risk than he was before you did that. Don't get me wrong. I think it's great that you were able to help him in that way. It just shows how twisted the system is.

As for Dave Ramsey, in his world, you would have no trouble finding a landlord who will rent to you without relying on a credit check. The same goes for getting a mortgage.

I agree completely. It's just a game, and that happens to be a trick to get ahead without doing anything.

I used my credit to buy a house, credit I had worked on to prove my credit worthiness. My friend had no credit because he avoided payments, which is supposed to be a high-risk indicator. It shows you are afraid of debt(which he was) instead of showing you can be responsible with it. He had less income(poverty level) but got approved for more house than me and a lot lower interest rate thanks to a government loan. He bought a brand new house he couldn't afford, but the government loan subsidised the payment several hundred a month. They based his credit worthiness off his bill payment history. It made me mad because I worked to prove myself, and he just went right around it.

I despise the credit system, but it is so ingrained into the system we can't get away from it.

[GoodSteward]

I was reading on another forum once that a guy had like 200k$ to put on a house but couldn't get approved because he paid cash for everything, so he had no credit history. So sad.

[DaveInPgh]

I was reading on another forum once that a guy had like 200k$ to put on a house but couldn't get approved because he paid cash for everything, so he had no credit history. So sad.

My brother recently turned 48 and has never had a credit card or any form of debt. He paid cash for the 3 cars he bought brand new over the years. Paid cash for his house. All of his home improvements paid in cash.

Of course when there is something he wants to purchase and can't find it locally, he is forced to turn to me (his younger brother) to purchase it for him over the Internet. It can be a pain in the rear sometimes, but I am happy to earn rewards for his purchases.

[disneysteve]

Of course when there is something he wants to purchase and can't find it locally, he is forced to turn to me (his younger brother) to purchase it for him over the Internet. It can be a pain in the rear sometimes, but I am happy to earn rewards for his purchases.

Why can't he use a debit card?

[DaveInPgh]

Why can't he use a debit card?

He doesn't want a debit card. He doesn't want to have Big Brother in his life anymore than he has to. Even if he had a debit card, he would never use it on the Internet.

[GoodSteward]

He doesn't want a debit card. He doesn't want to have Big Brother in his life anymore than he has to. Even if he had a debit card, he would never use it on the Internet.

My aunt is that way. She wants me to buy stuff online. lol

I'm like really? My card info was stolen from our local GOOD WILL...and you are worried about online purchases?

[DaveInPgh]

[snafu]

Please note, the financial institutions have hijacked the system and are handsomely rewarded for their misdeeds.

http://fortune.com/2016/09/12/wells-fargo-cfpb-carrie-tolstedt/

The subprime mortgage fiasco [2008 crash] had taxpayers cover the $ 5 B shortfall and come up with the money to pay executives gigantic bonuses. Greenspan and Paulson weren't charged with fraud. Millions of people lost homes, jobs, life savings and pensions. 'Well done Brownie,' as GW famously offered praise.

Has anyone watched The Big Short? I didn't understand every detail but the marketing scheme was clear enough and the results vibrated through the world. This is an election year and what the banks are doing isn't even being mentioned in the hate filled environment.

[sv2007]

This is a perfect example of how meaningless credit scores really are. The fact that his score jumped 70 points when he did absolutely nothing really makes no sense. He is not any less of a credit risk than he was before you did that. Don't get me wrong. I think it's great that you were able to help him in that way. It just shows how twisted the system is.

As for Dave Ramsey, in his world, you would have no trouble finding a landlord who will rent to you without relying on a credit check. The same goes for getting a mortgage.

Remember I paid off my mortgage a while back?
Guess what?
It's still not at where it was prior the the mortgage payoff : )

(Oh, this is the official FICO score; the only reason I keep a Discover card)

[sv2007]

As for helping family without giving money, it's done very often and you may not even know that you are helping.

Just by being on the telephone and at family gatherings may be psychology counseling. These are things that money just can't buy. I read in Japan that a company is renting out old men just to listen to people's problems. A complete stranger. How much is family?

Money isn't everything, in fact, it is actually very low on the value chain. Most things are priceless. Especially in the US, there's so much money and material things that I find it funny that some people still places high importance on money. But this is the now me; 15-20yrs back, I'm just like those people. Anyway, words of wisdom from old age/experience for you.

[GoodSteward]

Remember I paid off my mortgage a while back?
Guess what?
It's still not at where it was prior the the mortgage payoff : )

(Oh, this is the official FICO score; the only reason I keep a Discover card)

This is why I call it a game. In their eyes, they claim you have a negative aspect (not derogatory) by NOT having debt. Silly.

[DaveInPgh]

I am going to see if I can rent out this guy. His bow tie game is on point!