He had two accounts closed but paid off the balances.
Now he cant get accepted for any sort of credit.
Hes 26 now and is working again while living at home with me.
Im thinking of offering to co-sign a credit card for him so that he can rebuild his credit.
What do you think, Penny?
Is this a good idea?
Dear M.,
I suppose that somewhere out there, someone has co-signed and doesnt regret it.
But theyve never written to me.
Those are just the letters Ive published.
Every time I answer a question on co-signing, my inbox fills up with co-signing regrets.
Trying to find ways to cut out unnecessary spending?
Banks make tons of money by issuing people credit cards and charging them exorbitant interest rates.
When a bank looks at someones credit profile and rejects them, theyre saying: Nah.
Well pass on the potential to make money because its too big of a risk.
Thats a pretty good reason not to jeopardize your personal credit or finances, either.
But you may not have a choice on this one.
Should you ignore my advice, you may have better luck with a community bank orcredit union.
No Interest Til Almost 2027?
You put down a refundable deposit that becomes your line of credit.
Because theres little risk to the issuer, its easy to get approved for one.
But heres what Im curious about: Has your son even asked you for help?
Your signature certainly implies otherwise.
From what youve told me, Im concerned that your son lacks the drive torebuild his credit.
If he isnt motivated to fix his finances, what else isnt he motivated to do?
I suspect thats the heart of your concern.
Are you worried that your son will still be a boomerang kid when hes 36 or 46?
Its great that hes working again, but is he workingtowardanything?
Youre no doubt cutting him a break by allowing him to live with you.
Does your generosity have a shelf life?
Many people wont make changes when they feel too comfortable.
Credit can certainly be part of this conversation.
When your son leaves the nest again, hell find life a lot easier if hes improved his credit.
Ultimately, though, hell need to be the one to make this happen.
Its time for him to act like the adult that he is.
If your son isnt willing to make any changes, youll have to put more pressure on him.
That may mean setting a hard deadline for moving out and sticking to it.
This will be uncomfortable for both of you.
Resist the urge to play savior here.
Maybe hell learn that life without credit is tough and finally make changes.
If you make life too easy for him, your fears will come true and hell never re-establish himself.
Some people insist on learning things the hard way.
Hopefully, your son isnt one of them.
Robin Hartill is a certified financial planner and a senior editor at The Penny Hoarder.
