How will this affect my parents’ credit scores?

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Let’s say that my parents co-signed a credit card for me because I’m not 21 yet, and that I pay my balance in full every single month. Will my parents’ credit scores be negatively affected just by cosigning my credit card?

In general, does increasing one’s credit limit lower one’s credit scores? I know that hard inquiries for credit scores can lower credit scores 10-20 points a time, but what about applying for credit in itself?

Thanks in advance!

4 Comments
  1. Reply
    Amanda C
    June 26, 2011 at 10:13 am

    Sounds like herpes?

  2. Reply
    Top Gun
    June 26, 2011 at 10:33 am

    If you pay your credit card balance off in full every month, that is fantastic. Excellent credit score

  3. Reply
    bdancer222
    June 26, 2011 at 11:15 am

    The credit card will appear on your credit report and your parents. They are equally liable as co-signers and the account will be counted in their score. Paying on time will be good; paying late or defaulted would be bad. Paying the balance in full every month is the smart way to handle a credit card. You build credit and avoid interest.

    Increasing your credit limit does not lower your score. Hard inquiries only ding your score a few points, not 10-20. Your score quickly rebounds and hard inquiries have no impact by 12 months. Credit applications generate a hard inquiry. As long as you don’t apply for multiple lines of credit in a short period, you won’t even notice the small ding from an inquiry.

    Opening a new account can lower the average age of your open lines of credit which can lower your score. But if your credit history is all pretty new, this really makes no difference. It makes the biggest impact on folks with one 5+ year old account who open a brand new one — drops the average to 2.5 years.

  4. Reply
    stan c
    June 26, 2011 at 11:37 am

    A credit score is based on a 12 month activity and usually goes up between 5 to 10% per month providing you are paying on time. This will not effect your parents credit score, it will only increase their credit as well. Anytime you apply for a credit card , the drop is only about 3 points, not 10-20. It will jump back up to where it was in about 2 months. . When you get to be 60, then you can start to worry.

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