Something was proposed to me the other day and I wonder what would everyone else would do. Would you allow someone to use your credit to purchase a home if they paid $1,000 up front and then give you a percentage of the profit when the home is sold? Even if you have bad credit?
2007-03-07 01:47:25 · 9 answers · asked by Shareen 2 in Business & Finance ➔ Credit
NO NO NO - That doesn't even sound right - sounds fishy to me.
Besides, if they pay you $1,000 and charge $100,000 - you're still in debt $99,000 for a charge you made willing. If this person flees and just decides not to pay you back the other $99,000, the credit card company isn't going to be looking to them for the money, they'll be looking to you.
I made this make ONE time and charged a rental car for my brother-in-law because they wanted a c/c and wouldn't use a bank card. First, he denied the car insurance. Then he was supposed to pay it AS SOON AS he dropped the car off and didn't. It took me two months to get my money (luckily) with interest. From that point on, I refuse to charge anything for anyone! It may sound harsh, but you're responsible for those charges.
2007-03-07 01:56:40 · answer #1 · answered by reandsmom77 6 · 0⤊ 0⤋
Never.
No guarantee that you'll get your money back. I don't think you can buy a house with a credit card anyway. I doubt your limit is that high if you have bad credit.
And there's no guarantee that you'll make a profit when the home is sold. If you don't have it long enough you also have to pay capital gains taxes.
You'd also be paying the interest on the original amount.
2007-03-07 01:58:15 · answer #2 · answered by parsonsel 6 · 0⤊ 0⤋
NO WAY!! This sounds like a scam, or a way for someone to run up huge bills(bills that are bigger than the amount of money he/she claims to pay you!) and then flee. Then you will be stuck with bad credit for 7yrs, or 10yrs if you end up having to declare bankruptcy over it. And if any bills get sent to collections, it is possible for the collections agency to eventually try to sue you for the amount owed...if you cannot pay, then the judgment(resulting from getting sued) will be placed against you and then you can possibly lose your house or cars or other valuable items in your name. And even if you do not get sued but are simply stuck with bad credit for 7yrs, you will be strictly limited in what you can do in life. For example, there are many apartment buildings that won't even think of renting to you if you have bad credit, even if you're homeless in the streets(creditors and landlords have no sympathy).
Why would this person need to use your credit anyway? It sounds to me like the person cannot use his/her own credit, because he/she ruined his/her own credit. So what's to stop that person from defaulting on credit obligations once again, if it's already happened in the past?
Your credit is priceless! It's not worth the money that anyone would pay you! (That is, unless you are terminally ill, dying a week from now, and need some quick loot to go on one last cruise before you die)
2007-03-07 03:44:15 · answer #3 · answered by Anonymous · 0⤊ 0⤋
No, not a good idea at all, especially for something as big as a house. If you let someone use your credit, you are essentially making them a loan, since you're responsible if they don't pay the debt. It's not wise to loan anyone money unless you are willing to just give it to them. And depending on circumstances, it might not even be legal.
If you are the one with bad credit, then you probably wouldn't even be able to do this.
2007-03-07 02:10:33 · answer #4 · answered by Judy 7 · 0⤊ 0⤋
Bad credit is one of the worst problems to have... however there exists a solution.
I will hereby talk from my personal experience.
I did debt consolidation a couple of years ago, however If I had to do it again I would pay to some minor details,
if someone wants to get out of debt today it is pretty easy with a debt consolidation plan, however it may get a bit tricky at times, I suggest you get as much information as possible online on this first,
a good place to start in my humble opinion is astraight to the point ebook with question and answer I found :
http://umgarticles.atspace.com/debt-consolidation.htm
if it helps kindly remember me in your voting!.. cheers!
2007-03-09 00:09:20 · answer #5 · answered by gabriel jones 4 · 0⤊ 0⤋
Absolutely not. You are putting yourself in the position of recorse if the person doesn't pay. If they were a good friend, they wouldn't put you in that position and if they are your friend at all they'll understand when you decline.
2007-03-07 01:52:27 · answer #6 · answered by Mr Chris 4 · 1⤊ 0⤋
I would be leary if it was my brother, and strangers need not apply IMO.
What they proposed is criminal and if you agreed you're liable to be looking at something equaly ugly ....
Smell a scam and it probably is ... stay away
2007-03-07 01:52:01 · answer #7 · answered by nomad943 2 · 0⤊ 0⤋
Go for someother
2007-03-07 01:50:45 · answer #8 · answered by gaya.0001 2 · 0⤊ 0⤋
NO NO NO - This is called straw buying and it is fraud.
2007-03-10 18:22:08 · answer #9 · answered by Hiddendepths 1 · 0⤊ 0⤋