Riley, The credit is extended to only the credit worthy person applying. A person requiring a representative payee or trustee because they can no longer handle their finances is NOT a good credit risk. To ask the CC companies to name the card as you suggested would send up red flags all over and get the card cancelled.
A credit card is not allowed (for example, to use as overdraft protection) if there is a representative payee, as told to me by my bank.
That is not to say an elder with good credit cannot have a credit card. But it leaves them vulnerable to exploitation and identity theft.
One idea: POA assists to get credit card, with a secondary card in POA's name. When the cards arrive (at the financial p.o. box) shred the elder's card, and just use the POA's secondary card to make purchases for elder. Be sure to never use the card for self-keep funds separate.
1. Freeze or close any accounts not actively being used (Discover allowed me to freeze my mother's account - keep it just in case). I had already taken over paying her bills and anything non-government allowed me to change billing address (govt entities like pension/VA/SS/IRS do not give a rat's patootie about your Durable Power of Attorney! Still trying to get that worked out) 2. Change billing address, if needed and set up alerts on any credit cards or other accounts that allow it (Discover BTW will NOT allow me online access, even after having her sign a letter saying it was okay). 3. FREEZE credit via credit bureaus - cost $10 per. This will prevent any NEW credit being opened. (I had to do this to my own credit because the nimbo at the elder attorney's office setting up mother trust sent my SS in email!!)
P.S. I have never purchased one of these ID theft protection services, HOWEVER, at least twice it was provided free because the accounts were compromised by the company handling them. My take on them based on that experience? USELESS!!
P.P.S. Before freezing via the credit bureaus, get a credit report from each one and check to be sure there are not accounts that still exist but are "closed" due to inactivity but still "live" (Sears was notorious for disabling my account, but would allow it to be reopened when I was trying to use it), or that he no longer uses/has cards for - close all of those!
I am not sure if this is possible but I wonder if you could put the cards in your name for benefit of (name). This wording may be off. What you want to do is NOT allow him ability to withdraw or spend money without your approval. Perhaps TWO SIGNATURES COULD BE REQUIRED. Call the banks and credit card companies and see what they would suggest. if worst comes to worst, check with an attorney.
If you r now in charge for paying the bills and his spending, I agree he needs no credit. If he doesn't charge anymore, like said freeze the card, pay it off and close it. If he needs a charge, keep the Visa or MasterCard, they can be used anywhere. Any of the frivolous ones pay off and cancel. Watch how u do this if he is looking at Medicaid in the next five years. I have been told that since Mom is in an AL and getting close to Medicaid, all money is needed for her care. No bills on her house or taxes should be paid. (More to this but too long to put here). I would check with his bank on how his accounts are covered. If u are writing all his checks have it stipulated that only your signature should be excepted. Also, have ur POA on file with them. Credit cards have a feature that tells u immediately if an unusual purchase or more than you spend happens. They can text u. Personally, I would do nothing online. I do not do my banking online. I buy from secured sites and never more than I can afford to lose. I would really think twice about getting involved in the Fraud thing. Most financial institutions have some kind of protection in place. My Bank no longer requires u to put ur bank acct. No. on the back with ur signature when cashing a check.
I froze my father's credit. At his age, he is unlikely to need to borrow money or open new accounts. Keeping his money safe is more critical. And that's the best of keeping his accounts safe. Reversing a credit freeze is not difficult if needed.
Do you do on-line banking? Over Wi-Fi? Is his account information accessible to others--bank statements, ATM codes, checks, credit cards? I think you need to compare the cost against the risk. Does he have much money to lose--a few hundred bucks may not be much of a temptation to thieves, but the cost of "protection" might be a big percentage of his income. A credit block is a great suggestion, but can be an annoyance if he needs to borrow money. You can monitor his credit for free: annualcreditreport website You can get a free report from each of the 3 agencies annually. I spread ours out over the year and get one for my husband or myself every 2 months. You could get your dad's every 4 months.
The credit is extended to only the credit worthy person applying.
A person requiring a representative payee or trustee because they can no longer handle their finances is NOT a good credit risk. To ask the CC companies to name the card as you suggested would send up red flags all over and get the card cancelled.
A credit card is not allowed (for example, to use as overdraft protection) if there is a representative payee, as told to me by my bank.
That is not to say an elder with good credit cannot have a credit card. But it leaves them vulnerable to exploitation and identity theft.
One idea: POA assists to get credit card, with a secondary card in POA's name. When the cards arrive (at the financial p.o. box) shred the elder's card, and just use the POA's secondary card to make purchases for elder.
Be sure to never use the card for self-keep funds separate.
2. Change billing address, if needed and set up alerts on any credit cards or other accounts that allow it (Discover BTW will NOT allow me online access, even after having her sign a letter saying it was okay).
3. FREEZE credit via credit bureaus - cost $10 per. This will prevent any NEW credit being opened. (I had to do this to my own credit because the nimbo at the elder attorney's office setting up mother trust sent my SS in email!!)
P.S. I have never purchased one of these ID theft protection services, HOWEVER, at least twice it was provided free because the accounts were compromised by the company handling them. My take on them based on that experience? USELESS!!
P.P.S. Before freezing via the credit bureaus, get a credit report from each one and check to be sure there are not accounts that still exist but are "closed" due to inactivity but still "live" (Sears was notorious for disabling my account, but would allow it to be reopened when I was trying to use it), or that he no longer uses/has cards for - close all of those!
A credit block is a great suggestion, but can be an annoyance if he needs to borrow money.
You can monitor his credit for free: annualcreditreport website
You can get a free report from each of the 3 agencies annually. I spread ours out over the year and get one for my husband or myself every 2 months. You could get your dad's every 4 months.