Guard your credit
A friend, we’ll call him Frank, recently told me he was denied for a credit card. I knew that he maintained a perfect credit history – paying bills on time, no outstanding balances, not too many opened accounts, etc. I advised him to get a free credit report and see where the mistake was so he can clear it up with the credit bureaus. Upon viewing his credit report, Frank saw a delinquent account with a balance of over $900 with a cell phone company – he doesn’t have a cell phone!
Then he remembered back in 2001 he allowed a “friend” to use his name to qualify for a cell phone account. That friend had a bankruptcy and couldn’t get one on his own credit. He assured Frank that he will make all the payments on the account; apparently he didn’t. Now Frank’s credit is negatively affected and the collection agency will come after Frank, not his “friend”. If he was in escrow for a house and was getting a mortgage loan, I would advice him to pay off the balance just so it doesn’t ruin his chance of purchasing the house. Unfair I know, but cheaper than getting a B paper loan, or falling out of escrow.
Lesson learned: I think you can figure that out.