Posted on 11/15/2012 6:45:23 AM PST by Altariel
Dear Dave,
My brother asked me to put his name on my credit card as an authorized user. He said it will help improve his credit score. Is this true, and would it help my score in any way?
Anna
Dear Anna,
Your brother is wrong. It will not improve his credit score at all. As an authorized user, he is not the owner of the debt. There’s a high likelihood that it will affect your credit score in a negative way, though, because there’s a good chance he’ll do some dumb things with your card.
Look at it this way. Why would someone give him credit, or raise his credit score, just for using your credit? It doesn’t make sense. Your credit score is affected by things like whether or not you pay your bill on time. The card isn’t in his name, so really all this amounts to is him having fun with your card, and you’re the one who’s liable for the damage. The truth is that authorized users shouldn’t even show up on a credit report.
It sounds like your brother has some financial problems. While I admire the fact that he wants to fix things, this is not the answer. Don’t misunderstand what I’m saying, Anna. Chances are he’s not trying to con you. He probably just got some bad information. But the hard truth is this: If you go along with his idea, it’s not going to help him, and it’s going to hurt you. Don’t do it!
—Dave
Dear Dave,
In terms of a family’s financial plan, when is it okay to purchase something like NFL season tickets? Is this the kind of thing that should wait until you’re debt-free and can afford to pay cash for them?
Greg
Dear Greg,
Absolutely, you should wait until you’re debt-free and can pay cash. That kind of thing is a prime example of an expensive, luxury purchase.
I’m an NFL season ticket holder for the Tennessee Titans. But I’ve been debt-free for years, and my family’s financial future is very secure. Whether the Titans win or lose, or whether I watch the games in person or in front of the television, has no impact on their security. However, if you’re sitting there with credit card debt, a car payment and living paycheck to paycheck, you’ve got no business buying season tickets. Get yourself out of debt, build an emergency fund, and make sure your family is taken care of first. Then you can have some fun. Live like no one else so that later you can live like no one else. And then, if that includes season tickets to your favorite football, baseball or hockey team, have a blast!
Remember, this kind of thing is entertainment. I know a lot of silly people out there act like whoever wins a football game is a matter of life and death, but it’s just a game. Your life and your financial future are not games, and they’re not things to be taken lightly. First things first, Greg. There will be plenty of time for that kind of fun when you can afford it!
—Dave
* Dave Ramsey is America’s trusted voice on money and business. He’s authored four New York Times best-selling books: Financial Peace, More Than Enough, The Total Money Makeover and EntreLeadership. The Dave Ramsey Show is heard by more than 5 million listeners each week on more than 500 radio stations. Follow Dave on Twitter at @DaveRamsey and on the web at daveramsey.com.
Dave Ramsey ping!
Does he have to look real hard to find clueless people to ask stupid questions like this? I think not.
Anna is too stupid to have a credit card. No doubt she voted for Obama.
Dave, let me take that call.
I once had an employee who had an illegal Mexican live-in girlfriend. She eventually sweet-talked him into co-signing her car loan.
One day she up and left him and drove that car back to Guadalajara. And he was on the hook for the payments.
The finance company would show up regularly with the required garnishment paperwork. Between that and the alimony/child support he was paying to his ex-wife, his take home pay was so little I could not figure out why the guy bothered to keep working.
I’m nearly done with Baby Step 6 and am now at a loss as to what to do next.....My projects have all been cancelled in expectation of the coming whirlwind...
Dave Ramsey Ping! (I’m keeping my fingers crossed that this will not double ping)
Stadiums were full at all college games and NFL games last weekend...economy can’t be that bad.
While watching the games last week, I couldn’t help but think of the Roman Collesium. Our populace is easily distracted from the impending doom.
Bread and circuses!
“Wwhen is it okay to purchase something like NFL season tickets?”
After you’re debt-free, own your house free and clear, fund your retirement under the assumption that neither Social Security nor Medicare will be there, and fund your kids’ educations.
I suppose that means after you’ve got a net worth of a few million, it would be okay. Maybe less if you’re young and have reasonable future income expectations.
You are EXACTLY right...I used to be a fan of the Redskins, until it dawned on me that there are more important situations in life to deal with.
Dear Abby, Dear Abby
My fountain pen leaks.
My wife hollers at me
and my kids are all freaks
Every side I get up on
is the wrong side of bed,
If it weren’t so expensive
I’d wish I were dead.
Signed... Unhappy
Not at Tennessee. Of course, that has nothing to do with the lousy economy. Just our lousy team.
You’re right...in that case, it is the team. :-)
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