Will My Grandmother's Debt Affect My Credit? - The Bills.com Blog
Bills.com Blog > Credit Questions > Will My Grandmother's Debt Affect My Credit?
Will My Grandmother's Debt Affect My Credit?
Tuesday, Aug 11, 2009
Question: I was an authorized user only on 3 of my Grandmother's credit cards. She passed 2 years ago. I can not afford to pay her debt. How do I go about having these items removed from my credit report?
Answer: Generally speaking, an authorized user is not legally liable for the charges on a credit card, as the authorized user never signed a credit contract with the credit card issuer. But the credit card company can, and in many cases must, report the activity on a credit card account on the credit reports of the primary cardholder and all authorized users, even though only the primary cardholder is legally liable for charges on the account.
If your Grandmother's debt is too much for you to pay off and the account is at risk of being charged off and sent to collections, it may do you well to contact the creditors to have yourself removed as an authorized user on the accounts; having your name removed as an authorized user will probably not remove past information from your
reports, but it may prevent future derogatory data on these accounts from appearing on your credit report.
As far as removing past derogatory items on your credit, only time - 7 years in most cases - can do that. In the meantime, you may be able to offset some of these negative items by establishing accounts and positive payment histories of your own. A good place to start is obtaining a secured credit card through your bank. You can read more about
secured cards at bills.com.
It is also a good idea to check your credit report as you move forward to check that the changes in these accounts are accurately
reflected in your credit reports. You can receive a free copy at
www.annualcreditreport.com. (This is the official website for getting a free annual credit report from all three credit bureaus – beware, as there are a lot of other websites offering "free" reports that are not, in fact, "free."). Also, the FTC has a terrific website covering credit reports, including how to address inaccuracies (the reports are infamous for containing errors). The FTC website is
www.ftc.gov.
I wish you the best of luck in your efforts, and hope that the information I have provided helps you Find. Learn. Save.
Best,
Bill
www.bills.com/blog
Also, make sure to get a free financial health check-up with Bills IQ!
Bill has answered all sorts of questions and has been able to provide those in need of financial guidance with helpful and valuable advice and information on their specific financial area of interest. If you need specific guidance on any of the above mentioned financial areas, feel free to Ask Bill your financial questions and get better informed. Also, make sure to get a free financial health check-up with Bills IQ!
Information provided by Bills.com is for general informational purposes only and is not be
construed as legal, financial, bankruptcy, tax or other professional advice. Should you
require more detailed information or specific professional advice tailored to your situation you
should consult an attorney, financial planner or tax advisor.
While we believe all information provided by Bills.com to be accurate as of the date of its posting,
we cannot ensure its accuracy. Use of this site and any information contained on or provided through
this site is provided without any representations, warranties or guarantees. Bills.com is not responsible
or liable for any decisions or actions anyone may take based on the information provided.
Please see
Terms of Use.
© 2006 - 2009Bills.com LLC. All Rights Reserved.