Lets say a father obtained a credit card in his son's name with the intention of establishing a perfect credit history on that card and giving it to the son on the son's 18th birthday, in the mean time the father is teaching the son how to manage his finances responsibly. Would that be a bad thing?
2007-02-27 12:58:37 · 6 answers · asked by diuadkha h 1 in Business & Finance ➔ Credit
A father establishing a credit account of any type in his son's name and SSN, then using it himself for any reason is fraud and illegal. No matter the good intention, it should not be done.
2007-02-27 13:03:03 · answer #1 · answered by RedSoxFan 4 · 2⤊ 0⤋
It's not a question of being a bad thing. It's an illegal thing. The father is not teaching responsibility if he's doing something that is illegal; no matter what his intentions might be for the son.
Ever heard of ID theft? Hello!
Having credit--perfect or not--is not the right way to manage finances wisely or teach someone else how to manage theirs.
2007-02-27 13:04:24 · answer #2 · answered by chaimail04 2 · 0⤊ 0⤋
Cedit may only be established under the issuants credentials, unless an authorized co-signer is established.
Under the Terms and Conditions only an 'Authorized Signer' is eligible and permitted the usage of the credit card and its benefits.
If your son is not of legal age in your state, then your son cannot enter into a legal and binding contract, therefore, cannot hold privileges of a credit card holder.
Under the Truth and Lending laws, the applicant swears all information to be true.
Since you completed the credit card application yourself and falsified the information using your sons information, you have not been truthful to the bank. This may be considered to be a fraudulent act.
Teaching your son responsible financial behavior is to be commended. Efforts to benefit from credit card privileges on your sons information should be abandoned.
If something should happen to you, then your sons good name is left with the burden of debt that he had no knowledge of or no effort in creating.
2007-02-27 13:37:48 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Yes, that is fraudulent. If the father wants, he can obtain a credit card in his own name and sign the son up as an authorized user. The son would be able to make charges, but the father would be responsible for paying the bill.
2007-02-27 13:04:55 · answer #4 · answered by Mariposa 7 · 0⤊ 1⤋
I think that is called fraud, theft, misrepresentation, immoral, unethical, or any number of other labels.
I am not sure he is teaching the child anything worthwhile. That is unless he wants the son to end up a convict.
2007-02-27 13:12:53 · answer #5 · answered by professorc 7 · 0⤊ 0⤋
yes a credit card is a bad thing to teach on how to manage money. Check out a multi-millionare debt free. his web site is daveramsey.com. He is a financial counselor.
2007-02-27 13:04:19 · answer #6 · answered by Anonymous · 0⤊ 2⤋