Shared Checking Account

[rduell]

My name is on both of my college-aged kids' checking accounts so that I can write checks for them or tend to any other financial business if I have to while they are away.

If they should happen to bounce a check does that reflect on my credit? Our oldest is the "artsy" type and isn't always prompt at taking care of things or keeping track of balances. On the other hand, he is also very frugal and doesn't usually spend one penny more than necessary.

[tinapbeana]

Originally Posted by rduell

My name is on both of my college-aged kids' checking accounts so that I can write checks for them or tend to any other financial business if I have to while they are away.

If they should happen to bounce a check does that reflect on my credit? Our oldest is the "artsy" type and isn't always prompt at taking care of things or keeping track of balances. On the other hand, he is also very frugal and doesn't usually spend one penny more than necessary.

yes, i believe it does (or rather would) reflect on your credit since you are jointly responsible for the account. perhaps instead of having your name of the account, you could have a power of attorney for your son? don't know if this would take care of it or not.

[vsjhoc]

A history of bouncing checks won't appear on your Experian/Equifax/TransUnion reports, and therefore isn't part of your FICO credit score. But you may get a bad ChexSystems consumer report which may make it difficult for you to open another checking account.

[Broken Arrow]

Thanks vsjhoc. I knew about it not affecting your credit score, but wasn't sure about the new Chex system.

[Homer Simpson] Mmmmm... Chex. [/Homer Simpson]

[tinapbeana]

well, the credit score bit may depend on whether or not the account has over draft protection, whether that 'protection' is handled like a line of credit by the bank, and whether the account is closed still owing on the 'open line'...

[Broken Arrow]

Oh yeah, that's right Tina. Forgot about that bit.

[vsjhoc]

Originally Posted by tinapbeana

well, the credit score bit may depend on whether or not the account has over draft protection, whether that 'protection' is handled like a line of credit by the bank, and whether the account is closed still owing on the 'open line'...

Good point, Tina.

[rduell]

He doesn't have any money left in his savings account because of college expenses so there is no draft protection.

I'm wondering if I should have my name taken off of his account. I know that he knowingly wouldn't overdraw, but he gets so wrapped up in college and art projects that real life takes a back seat.

[tinapbeana]

rduell, you might want to check with the bank. my first checking account offered $500 in 'overdraft protection' automatically, even though i didn't have a savings account with them. their system treated it as a line of credit. if that's the case, i think you can request to have it 'turned off', so to speak.

[rduell]

Thanks Tina. I didn't know that. I have all of his account information in his file that I keep here. That might have some info too.

I didn't used to worry about him and his money at all because he usually had a few thousand in there. But he was extremely slow (like the entire semester!) in getting his direct deposit set up so he hasn't gotten paid at all this semester. At this point they owe him over $1800!!! He'll be getting it before Thanksgiving, thank goodness.

I think he needs a financially responsible wife to take over so Mom can retire. LOL!

[Ima saver]

I think you should take your name off the checking account. when my husband put in his application for his builder's license, he had to take a form to the bank and they had to attest that he had not had any bounced checks. (It can happen to the best of us.

[vishenda]

Get overdraft protection on both accounts..
No, bounced checks do not effect your credit...It is time your son learns how to promptly take care of things and keep track of balances. Talk to him about how you can help him develop those skills and consider removing yourself from his account so he can start to function like an adult.

[tener]

Originally Posted by rduell

I'm wondering if I should have my name taken off of his account. I know that he knowingly wouldn't overdraw, but he gets so wrapped up in college and art projects that real life takes a back seat.

perharps you should, it will give him more responsibility to control his finances, you could still bail him out when things get tough..

[kunoichi]

Just wanted to add my two cents as student who has recently graduated . I would not be so quick to remove your son from the checking account. BUT I would be sure to have some sort of overdraft protection. Though I agree with the previous poster about not giving your son a free ride, there are many situations where having a joint account can be a real life saver. Before I graduated I had a series of medical emergencies that my parents helped me with financially. With out that joint checking account, I would have been in real trouble. I was sick and in the hospital and thus I could not do PayPal, Western Union, etc. Make sure your son understands what it really means to be on the account but removing him could end up being more hassle than help.