‘Dad opened a credit card in my name to help my credit, but now my score has dropped 50 points’: How can I handle this situation and protect my credit?

Hey Money Minder!

So, listen up. When I (22m) was in high school, my dad opened a credit card in my name to help boost my credit score. It totally worked, and my credit score has been solid (~760). The thing is, I’ve never actually used the card myself. My dad just throws a few bucks on it each month to get a statement, then pays it off to help me out.

But here’s the kicker. Recently, he went on this big vacation, blew a ton of cash, and basically maxed out the credit card without telling me. The only way I found out was through the Credit Karma app, which shows all my balances. And because of this, my credit score took a nosedive by like 50 points in just one day.

I’m pretty sure he’s gonna pay it off, but it got me thinking – what if he doesn’t? I’m tempted to just close the card, but I’m worried it’ll tank my credit even more since it’s my oldest account on an already young credit history. So, I’m stuck and not sure what move to make.

Oh, and can I ask the bank for the statement, considering the card’s under my name?

Bye for now, Credit Confuzzled Guy

Response from THE MONEY MINDER:

Hello There,

I understand your concern regarding the situation with your dad and the credit card he opened in your name. It’s great that he helped you establish good credit, but it’s understandable to feel uneasy about the recent developments.

It is indeed a tricky situation, as closing your oldest account can potentially have a negative impact on your credit score. However, considering the current circumstances, it might be worth discussing with your dad the importance of keeping you informed about any financial activities involving your accounts. Communication is key in maintaining trust and transparency in such situations.

In the meantime, while you wait to see if your dad will pay off the balance, you could consider regularly monitoring your credit reports to stay updated on the status of your accounts. It’s also a good idea to reach out to the bank issuing the credit card to request statements and updates, as you are technically the account holder.

Ultimately, the decision on whether to keep the account open or close it should be based on your discussions with your dad and your financial goals. It’s important to prioritize your financial well-being and ensure that your credit remains in good standing. Remember, you have the power to take control of your finances and make informed decisions that align with your goals.

All the best from THE MONEY MINDER