How safe is it to let someone Piggy Back on my credit card?

Question

I was asked by a relative to let them piggyback on my credit card. My wife and I are thinking of purchasing a new home. Will this piggybacking hurt me. Will I be liable for anythng. Thanks

Answer 1

As long as you do not let them have the card physically, you would be ok. Sounds like they are trying to use your good credit standing to boost theirs. If I were you, tell them absolutely NOT!

Answer 2

Did you add them as an additional or did you just make the purchase on your card. It won't hurt you as long as your credit doesnt have negatives on it. Write out an agreement w/ ur relative and get it signed by a notary public too.

Sorry I didnt realize you hadn't done it yet. In that case don't. If you do it then they will always be asking for more more more. I know how my family is anyhow. You will be liable for all the purchases on your card. If you write an agreement, you can settle it in small claims, but ultimately, you are putting your credit history at risk. As long as your account is in good standing you are ok, but if this person doesn't pay you can you afford it?

Answer 3

Run away from that as fast as you can. YES, you will be liable. This relative is attempting to use YOUR good credit rating in order to improve HIS rotten rating. If he defaults, be prepared to have your piggybacking friend go down the tubes along with you.

Answer 4

tell them to get a prepaid credit card to make any purchases requiring a card. even if they pay you back the amount owed, you are still being charged interest on what ever they purchased, and you are ultimately responsible. as an adult, your relative should have established enough credit by now to have his/her own credit line(s). if they don't have any credit or money (to buy outright), how do they intend to pay you back? would you consider loaning the amount of money needed in cash to the relative? this is better because you can get a legal notorized document stating that they are borrowing x amount of dollars for x amount of months, and if they don't pay it back, it won't go against your credit, or collect interest. if you don't have the money to loan it to them, you should look out for # 1 and tell them no.

Answer 5

If I understand this, you would be allowing them to use YOUR credit card with no guarantee they would pay for their purchases. YOU would be responsible because as far as the credit card company is concerned, You are the one who charged it. DO NOT DO THIS!! A house is too important to mess up. Furthermore, why doesn't this relative have their own credit? My guess is that they haven't paid bills in the past or can't qualify for credit. It is not your responsibility to help them.

Answer 6

Makes me ask the question Why cant your relative get there own credit card? Do they have bad credit? If they are unable to get a credit card than i wouldent realy want them using mine.

Answer 7

Rich investors for a fee will piggyback with complete strangers, insuring a better interest rate saving thousands minus the fee. This in my opinion is whats best for you and the person looking for the ride.

Answer 8

The things we do for family.

I never realized that loyalty requires me to jeopardize everything I worked ever so hard to build -- just to help someone else out who happened to not exercise the best financial habits.

WHY NOT JUST LOAN THE RELATIVE MONEY. Then if they don't pay you back the money, at least you have a solid FICO score.

Think it through. You can't give what you don't have!

Answer 9

You will be liable for everything they charge. Why would you risk your home? If (this is a BIG if) you decide to let someone do this at least wait until after you have the house.