Joint Credit Has Several Faces

December 22nd, 2016 | Credit Card Debt



To have joint credit with another individual you don’t have to walk down an aisle and exchange a kiss with each other.  Without getting married there are different types of joint credit that can potentially harm your credit rating. As with marriage it pays to be careful who you open a joint account with. If the other person disappears or flakes out you are going to be responsible for the debt. There are three different kinds of shared credit.

They are:

Joint Credit - You are a full partner on the account. You fill out an application for a credit card or loan and the account has your name on it, and the money or credit is yours to use. You are responsible for 100 percent of the bill.

Authorized User - You can use the credit, but you have little or no responsibility for repaying it. You didn’t fill out or sign an application. The credit accout belongs to someone else, and that person receives the bills and has given you charging privileges. Commonly used by parents to allow their children credit use.

Co-Signer - You are signing to be responsible for the entire bill, but the loan or credit account is in someone else’s name and you can’t use it. The other party receives the bills, and you may or may not have access to account information. If the person who receives the bill defaults, pays late or misses a payment, that bad behavior can be included in your history and knock down your credit score.

Give us a call at (901) 388-1588 if you want to learn more about the rights and responsibilities of applying for and having credit with another person!  We're here for you!


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