There are different ways that a credit card account can be structured for a consumer’s convenience. One of them is to make it a joint account so that two individuals’ names appear on it. Some credit card companies require a person to get a co-signer before they can get credit.
Credit Card Joint Account Holder
A joint credit card is account is opened under two the names of the two people who will be sharing it. Both parties can use the card to make purchases or make balance transfers, if the card in question allows them to do so. They are also both legally responsible for the debt.
If the payments are not made, the credit card company will look to both of them to pay the debt. At that point, it doesn’t matter if one person charged more onto the card than the other or what the purchases were for. The credit card company is concerned about getting paid.
Another option that is available for two people to use a credit card account is for the second one to be added as an authorized user. In that situation, the primary account holder is legally responsible for the charges made to the card. The authorized user can use the card, but is not held responsible by the credit card company for the charges he or she incurs.
The person who is the primary card holder needs to keep this in mind and consider whether he or she wants to add another person as an authorized user to the account or not. The authorized user should be someone the primary account holder trusts implicitly, since they can use the card and not be held responsible for the debts they are incurring.
Co-signer for a Credit Card Account
A co-signer on a credit card account is someone who saying they are prepared to be responsible for the debt if the primary cardholder doesn’t make his or her payments on time. The person who is applying for credit has been asked for a co-signer because he or she cannot get credit on their own. The person may be a student or a recent grad who hasn’t established credit in his or her own name yet.
Another reason a person may be asked to arrange for a cosigner when they apply for credit is that they have had credit issues in the past. The credit card company looks at a person’s past performance when it comes to making payments and uses that as a way to determine whether they will be responsible with credit in the future.
When someone is approached about co-signing for a credit card, it’s a good idea for that person to think about it very carefully. They are being asked to guarantee that a person with either no credit history or a blemished one is going to pay their bills on time. If they are not able to do so, the co-signer is on the hook for the unpaid debt.
Finding the Right Card
Whether someone is looking for a credit card that they can use with a joint account holder or a co-signer, they need to take the time to consider their options first. There are many different types of cards available, which can make choosing the best one challenging. If there are credit issues involved, the card holder may have to start off with a card with a higher interest rate. After they have paid their bills on time for 12 months or so, they may be able to qualify for a card with a lower rate of interest and transfer any outstanding balance at that point.
Other cardholders want to get a credit card that offers points or rewards. When they are looking for a card that is a good fit, they may be willing to get one with a higher interest rate if it means they can collect air miles or get cash back on some purchases. The good news is that with the number of credit card options available on the market, there is a card that will fit just about any individual’s needs.
Why wait to learn more about the options available to you when it comes to credit cards? You can compare credit card options quickly and easily by using our credit card chaser tool. It’s absolutely free, and you can get started finding credit card offers right now!
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