What does it mean to be a co-signer?Ī co-signer doesn’t have any control over the account but is responsible for paying the balance if the account holder doesn’t pay. “The problem there is if the main user is a bad risk, it could hurt the authorized user,” said Feddis. If the account is paid on time and managed well, that would help the authorized user build a healthy credit history and credit score. Many issuers include authorized users when reporting account use to the credit bureaus, said Nessa Feddis, senior vice president and counsel for the American Bankers Association. Parents might make their children authorized users to give them access to a credit card for an emergency or help them build a credit history. This account status is common among family members. The issuer will often send a separate card for the authorized user. To become an authorized user, a primary or joint account holder must notify the issuer to add the individual as an authorized user on the account. “If it’s something they’ve incurred, there may be state laws that make them liable,” said Wu. But in certain circumstances, they could possibly be held responsible for their own charges. The primary account holder is responsible for paying the balance and can see all spending on the card, so they’ll be able to see how much the authorized user has spent, as well as when and where they shopped.įor the most part, authorized users aren’t responsible for the bills. In general, authorized users can request to have themselves removed from credit card accounts by contacting the issuer. They can’t request changes to the credit line or add other authorized users. What does it mean to be an authorized user?Īuthorized users can use the credit card, but they won’t receive bills and won’t have any control over the account. You’ll need to take action to remove someone from your joint credit card account. “Your divorce judgment does not bind the credit issuer,” said Chi Chi Wu, staff attorney for the National Consumer Law Center. Even if a divorce court or mediation agreement assigns the card or card debt to a former partner, that doesn’t erase your initial agreement with the card issuer. And, if the issuer reports to the credit bureaus, they must include the account on the credit reports of all joint account holders.Įach account holder is also completely responsible for the entire debt - not just their own charges or 50 percent of the total, said McLain.Įnding the relationship with your joint account holder doesn’t dissolve your responsibility for the account. You can request increases and decreases in the credit line. You’ll have your own card and full access to your account information. ![]() But most card issuers don’t allow joint account holders on credit cards.Ī joint account holder has all the rights and responsibilities of a primary account holder. Tip: Being a joint account holder is common on bank accounts and certain loans. ![]() They have equal access to the credit line or loan, and each is individually responsible for the entire debt. When joint account holders open the account, they each fill out applications and have their credit checked. This label “just means two parties can apply for a card together,” said Mike McLain, senior compliance counsel for the Credit Union National Association. What does it mean to be a joint account holder? Here’s what you need to know about the different access and responsibilities that come with each account status. Unless you opened the account alone (which makes you a primary account holder), your status with shared accounts is likely to fall into one of three categories: joint account holder, authorized user or co-signer. That’s because it determines how much control you have over the account, your responsibility for the bill and its impact on your credit history. If you share credit with another person, your account status is just as important as the credit line and the interest rate.
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