if my name is added to a house will my credit score improve?
I have bad credit and I wanted to know if my mother adds me to her house will my credit score improve also would my bad credit affect her monthly payments if she adds me
Public Comments
- No. It will go down even more.
- Just remember that if your mom adds you to credit cards or her house, all the responsibilites will fall on you to be responsible for in the event she cannot pay. This will be the same thing as obtaining more credit, which will cause it to fall further.
- i believe your name must be on the mortgage. but inorder to do that your mother must be willing to change the mortgage, but for her to do that she could end up with a high interest rate if your credit is so bad. if your credit is low some ways to increase it is to pay more than monthly min on credit cards, make sure payments are always on time. Also, do not used credit cards unless absolutly necessary bc that will increase your balance owed. you want your balance owed to always be less than 1/4 ( think) of what you make per year. if you have credit cards that you do not own money to, destroy the card and keep it in a safe place so that you will have that as available credit. do not close the account!! this will look like you have credit that has not been used bc you dont need it and will actually help raise your credit. now remember when you add your name onto her mortgage, you will look as though you owe that money and this will make your credit go down. also, everytime your credit is ran it goes down.
- just adding you to the title of the loan won't help you. but lets say in theory you get a loan like on a car or anything and your mom cosigns for you and she makes good on her payments every month.. then yes that will help you. I have my wife on title of the home and it doesn't help her because she is not directly financially responsible for the loan.
- Are you asking about being added to the deed or the loan? If she adds you to the deed it will not effect either one of your credit scores. She can not add you to the loan without the lenders approval and would most likely have to refinance which would cause her interest rate to go up because of your bad credit.
- If you mean "add you to the title" of the house, then, no, it won't improve your credit score. To improve your credit, you'd have to be a party to the loan. Basically, she'd have to refinance the house and you'd have to be a co-signer. After that, the loan would have to be successfully paid and maintained for at least a few years before it would have any appreciable effect. If you add on as a co-signer, you probably won't affect her payments adversely, but you won't help, either. The loan officer might ask for you to be dropped from the loan application. Mom will have to insist, in that case. The best way for you to improve your credit score is to use credit, and maintain an on-time record in making payments. Tricks like the one you are proposing have an effect, but not as much as you'd probably hope for.
- No. She would have to refinance and get you added to the mortgage. Adding your name to the house is as significant as putting your name on the mailbox, as far as credit is concerned.
- Adding you to the house won't improve your credit score because it will make it seem like you have more debt. Not a good idea! I've got 10 steps you can use to build your credit score. I raised mine to well over 700 points fro 500 using these steps over a year: # Know and Track Your Credit Score # Never Miss a Payment, Starting Today # Never use more than 20% of your Available Credit # Keep Credit Cards that Have No Annual Fees Open For as Long as Possible # Extend Your Credit Limit on Cards You Already Have before You Get New Ones # Get Credit Cards that Have CashBack Rewards to Contribute to your Balance # Transfer Your Balance to a Credit Card with a Lower Interest Rate and a Higher Available Credit- # If You Think You Are Going to be FORCED to Pay a Bill Late Ask for an Extension or Payment Plan # Take out a Small Personal Loan and Repay it Over a Year # Ask Someone With Good Credit if They will Account Shadow you Read the full article here, it gives you an overview of credit scores, and the 10 steps in detail on page 2: http://millionster.com/articles/debt/increase-fico-credit-score/
