Will buying a car under my name affect my CalWORKs cash aid & CalFresh benefits if it's for my dad?

This is a really bad idea that could definitely impact your benefits. When you're on CalWORKs, any asset in your name counts toward your resource limit - including vehicles beyond the one exempted vehicle. Plus, if your dad misses payments, YOUR credit gets destroyed, not his. And yes, this arrangement could potentially be viewed as fraud if you're not disclosing the vehicle as an asset or if the county thinks you're hiding income/resources.

i did something like this with my brother and it was a NIGHTMARE!!! he stopped making payments after 6 months and my credit is still a disaster 3 years later. plus they counted the car against my resource limit and i almost lost my benefits. dont do it!!!

This is definitely something you need to be careful about. In California, CalWORKs allows one vehicle per household to be exempt from the resource limit (up to any value if used for transportation). Any additional vehicles will count toward your $10,000 resource limit (as of 2025). More importantly, this arrangement raises several red flags: 1. You must report any changes in household property within 10 days 2. Having your name on a loan means you're legally responsible for it 3. If your father claims he's making the payments, the county might view these as undeclared income to you 4. If the arrangement is discovered during an audit or data match, you could face an overpayment and possibly fraud investigation There are better ways to build credit that won't risk your benefits - like a secured credit card with a very low limit that you manage responsibly.

My cousin did this exact same thing and the county found out when they did some kind of cross-check with the DMV. They counted the car value against her resource limit AND counted the monthly payments as income even though her boyfriend was making them! She got hit with a huge overpayment notice and they reduced her benefits for like a year to pay it back.

I'm curious why your dad can't just get the car in his own name? There's something fishy about wanting to put it in YOUR name when he knows you're on benefits. Sorry if that sounds harsh but I've seen family members take advantage of relatives on aid before. If he has bad credit and can't qualify, that's even more reason not to do this - banks already determined he's a credit risk.

if ur dad wants to help ur credit why dont he just add u as authorized user on HIS credit card?? that helps ur credit without all this risky car stuff. my aunt did that for me and my score went up like 60 points

Just want to add that if you're having trouble reaching your CalWORKs worker to ask about this officially, try using Claimyr.com. I was on hold FOREVER trying to talk to someone about a resource question similar to yours, and their service got me through to a real person in about 15 minutes. They have a video showing how it works at https://youtu.be/jzISHxCPLwE - definitely worth it for important questions like this where you need an official answer from your worker.

One additional point I wanted to clarify: when you're on CalWORKs, the county welfare department regularly does data matches with various agencies including the DMV, tax authorities, and financial institutions. This means even if you don't report the vehicle, there's a high likelihood they'll discover it during routine verification processes. This could result in: 1. Immediate discontinuance of benefits 2. Requirement to repay all benefits received during periods of ineligibility 3. Possible administrative penalties 4. In serious cases, referral for fraud investigation Always ask your eligibility worker BEFORE making changes that might affect your eligibility. Better to get an official answer than risk your benefits.

I'm glad you're asking about this before doing anything! As someone who's been through benefit reviews, I can tell you that transparency with your worker is always the best policy. Even well-intentioned arrangements like this can create serious problems down the line. A few safer alternatives for building credit while on benefits: - Secured credit cards (start with $200-300 limit) - Credit builder loans from credit unions - Becoming an authorized user on a family member's existing card (like someone mentioned) - Some banks offer "credit building" programs specifically for people with limited credit history The risk just isn't worth it with the car situation. Your benefits are too important to gamble with, especially when there are other ways to build credit that won't put your eligibility at risk. Stay safe and keep asking questions like this - it shows you're being responsible!

I'm so glad you decided to ask about this here first! I went through a similar situation a couple years ago where a family member wanted to help with my credit, and I almost made the same mistake. The CalWORKs system is really strict about resource limits and reporting requirements. Just to add to what others have said - even if your dad makes every payment on time, you're still legally responsible for that debt. And if something happens to him (job loss, illness, etc.), you'd be stuck with payments you can't afford while trying to maintain your benefits. I ended up going the secured credit card route that others mentioned, and it's been great. Started with a $300 limit, and after 8 months of on-time payments, they converted it to a regular card and increased my limit. My credit score has improved steadily without any risk to my benefits. Your instinct to ask questions and be cautious is exactly right. Protect those benefits first - everything else can be built up safely over time!

I'm really glad you're being smart and asking about this first! I work at a community center that helps people with benefits, and I see situations like this go wrong all the time. Your instincts are absolutely right to be cautious. What everyone else said is spot on - having that car loan in your name would definitely count as a resource, and the whole arrangement could look like you're trying to hide assets or income. Even with the best intentions from your dad, it's just too risky. I wanted to add one more credit-building option that might work for you: some credit unions offer "credit builder" accounts where you make small monthly payments (like $25-50) that get held in a savings account, and they report these payments to credit bureaus. After 6-12 months, you get your money back plus you've built payment history. It's super low risk and won't affect your benefits at all. You're being really responsible by asking these questions and thinking it through. Your benefits are your safety net - never worth risking them for credit building when there are safer alternatives available!

I'm so relieved you asked about this before going through with it! As someone who's been on CalWORKs for a few years, I can tell you the county is VERY thorough about checking for unreported assets. They do regular computer matches with the DMV, and having a car loan in your name would absolutely show up. Even if your dad has good intentions, you'd be taking on huge risks: - The car would count against your resource limit (you already have one exempt vehicle) - If your dad's payments are late or missed, YOUR credit gets destroyed - The county might view his payments as unreported income to you - You could face overpayment demands or even fraud charges I learned the hard way that it's always better to ask your worker first before making ANY financial changes. There are much safer ways to build credit - I started with a $200 secured credit card from my credit union and my score has improved 80 points over the past year without any risk to my benefits. Please don't risk your safety net for credit building. Your benefits are too important, and there are other paths that won't put your eligibility in jeopardy!

I'm really glad you came here to ask about this before making any decisions! As someone who's been navigating the CalWORKs system for a while, I can tell you that transparency with your caseworker is absolutely crucial. What you're describing is exactly the kind of situation that can create serious problems, even with the best intentions. The car would definitely count as a resource since you already have one vehicle, and the arrangement could raise red flags during routine audits. I want to echo what others have said about safer credit-building alternatives. I started with a secured credit card through my local credit union with just a $300 deposit. After making small purchases and paying them off in full each month for about 10 months, they graduated me to a regular card and my credit score improved significantly. The key is consistency - even small amounts help build that payment history. Another option that worked for a friend of mine is asking a trusted family member to add you as an authorized user on their existing card (if they have good payment history). You don't even need to use the card - just being listed helps your credit. Your benefits are your lifeline right now, and no credit improvement is worth risking that security. There are proven, safe ways to build credit that won't jeopardize your eligibility. Take your time and do it the right way!

I'm really glad you reached out before making this decision! As someone who's helped family members navigate CalWORKs, I can tell you this arrangement would definitely be problematic. Everyone here has given you excellent advice about the resource limits and reporting requirements. I wanted to add that there's another credit-building option that might work well for you: some banks offer "student" or "starter" credit cards with very low limits (like $300-500) that are designed for people with limited credit history. These often have lower approval requirements than secured cards and don't require a deposit upfront. Also, if you have any regular bills in your name (phone, utilities, etc.), you might want to look into services like Experian Boost that can add those payment histories to your credit report for free. Every little bit helps when you're building from scratch! Your dad's heart is probably in the right place, but this car loan idea could seriously backfire on both of you. The safer credit-building methods everyone mentioned might take a bit longer, but they won't put your essential benefits at risk. Better to build slowly and safely than to gamble with your security net!