Authorizing Users On Credit Cards Can Lead to Bad Credit in Houston

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Bad Credit Houston

Bad Credit Houston

Who Do I Trust?

Those of whom we trust are not always the most responsible.  Although emotions play a special role in our lives, one must choose to separate business from personal to avoid having bad credit in Houston.

What Is An Authorized User?

When acquiring credit cards, there is usually an option to place someone as an authorized user.  Although a social security number is not needed to add somebody as an authorized user one must be extremely careful when making a decision to add an authorized user on a credit card.  Once an authorized user is added to a credit card, the authorized user assumes the credit of the borrower on the specific credit card in which they are added.  Technically the authorized user is allowed to purchase on the credit card.   However an authorized user is not responsible for paying the bill.

Why Add An Authorized User To A Credit Card?

This may seem like a great idea to build credit for some young teens and young adults who have yet to establish a credit profile of their own.   What one must consider when adding an authorized user is “do I trust this person to give a credit card and allow them to spend on my account?”  The details of this credit card is going to have an effect on the credit of each person.

Choose An  Authorized User Carefully

If someone asks to be an authorized user consider his or her relationship to you. Do terms such as reliable, dependable, and/or responsible arise when you think of said person? People typically think putting someone on their credit card, as an authorized individual is beneficial. This is not always the case. Family, friends, and even spouses can ruin one’s chances of ever getting the infamous AMEX card or vice versa.

Think Twice Before Becoming An Authorized User

Also keep in mind when being added as an authorized user to a credit card, may result in bad credit in Houston, in the event the borrower is late on a payment.  If the borrower fails to pay the account and it ends up in collections, the account will have a negative effect on the authorized user’s credit as well.

Can An Authorized User Be Taken Off An Account?

A borrower may take an authorized user off an account before it goes late.  However, once the account has been late, a borrower can not remove an authorized user resulting in bad credit in Houston for the authorized user.

What Happens If The Credit Card Is 30 Days Late?

Any late payment will affect both parties credit score on the credit report. Things get sticky if there is any chance of untrustworthy situations such as break-ups, fallouts and life happening. For instance, if one’s  significant other is an authorized user on all credit cards, both would be at risk if the borrower decides not to pay.

The Creditor And Credit Bureaus Do Not Acknowledge Breakups and/or Divorces

If the ex goes on a shopping spree and leaves you with the bill, always stay accountable for ALL  cards, your name is associated with. Every credit card or installment loan in your name is usually located on your credit report, including late payments and negative activity.  If you signed for the credit line, you are responsible for the payment!  The creditors and credit bureaus do not acknowledge breakups and/or divorces.

Choose Authorized Users Wisely

Lenders use your credit report to determine your eligibility for credit cards and lines of credit. Examples of this include: credit cards, loans, apartment complexes, and car dealerships. Choose your authorized users wisely!

Be Conservative So You Do Not Become A Person In Houston With Bad Credit!

Overall, try your best to be conservative when it comes to authorized users. Make sure to keep yourself accountable, as well as the person who is an authorized user on your account. It is best to prevent bad credit in Houston before bad credit is occurs.

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