| Navigation: Credit Cards > Why You Should Have A Credit Card In Your Own Name
|
Why You Should Have A Credit Card In Your Own Name
If you have ever been asked by your wife, husband, child or friend to have someone else as
an authorised signatory to you, i.e. a supplemental signatory, on your credit card account
you no doubt gave this some serious thought. If you agreed to the request, the following are
some reason why you should have a credit card in your own name and they have a credit
card in their own name.
Credit History
Possibly the main reason why you should have a credit card in your own name is the effect
it has on your credit history.
In short, you have had to manage your financial affairs very astutely in order to gain a
sufficient credit worthiness to apply for, and be approved, a credit card. Conversely,
any supplemental signatory to you on your credit card doesn’t have to do anything –
as the card is relying on your credit history to determine the risk of the third person.
This may sound a little harsh, but if you think about it you are the one who is responsible
for repaying the card, so why shouldn’t they rely on your ability to repay rather than some
third person who has no obligation to repay them if there is an outstanding debt?
Now, you may well be thinking: “That’s not a problem, I’ll control their spending.”
And, you may even be able to manage that feat. But, here’s another reason why you
should have a credit card in your name and they should have a credit card in their name.
Throughout the time that they are supplemental signatories to you on your credit card
account, they are not enhancing their own credit worthiness – nor are they affecting their
credit rating. So, even if they are good supplemental signatories and never spend money
on your card without first seeking and getting your approval, it has no positive affect on
their credit history. On the other hand, if they were to have a credit card in their own name,
and were good and managed their account well, all of this would add lots of brownie points
to their credit history!
Lose - Lose Situation
The reason why having a supplemental signatory on your credit card account is a lose-lose
situation is not only because you take on the financial risk that they will behave themselves,
but also they have no upside if they behave well. Also, keep in mind that if your supplemental
cardholder runs amok and spends, spends, spends, it is your credit history that is being
affected, not theirs!
What Does This Mean?
It means that you could work years building up the perfect credit history and rating only to have
it all torn down overnight by someone else. So, if you don’t want that to happen, make sure have
these good reasons why you should have a credit card in your own name only the next time
someone asks you if they can become a supplemental signatory on your credit card account.
About the author:
Joseph Kenny is the webmaster of the UK credit card comparison site http://www.creditcards121.com/,
where you can find a selection of credit card advice. For US visitors there is also the comparison site
http://www.credit-cards-info.com/ for all US interest free offers
Credit Cards Articles:
Be Smart With Your Credit Card
Many credit card companies are complacent when it comes to their existing customers. How often have you seen great deals offered and when you enquire you are then told they are not for existing customers! Now is the time to take control and awake from your slumber and start shopping around for the latest and best deals in credit cards that suits you and not your bank.
Advantages of Switching Credit Cards
Switching credit cards is an everyday part of life now whether it is taking advantage of the introductory offers or simply deciding that your existing credit card account is old hand and you are looking for a newer better credit card deal than you have already
Closing Your Credit Card Account
It is one of the most frustrating feelings in the world. You’re trying to rid yourself of your debts. You’re putting more and more of your paycheck towards your credit cards. You’re gradually paying them off.
Balance Transfer Credit Cards – How Good Are They
There are many people who are just too loyal to their old credit card and do not realise how much they could save by easily transferring their balance to a card with a better deal. The credit card issuers are fighting for new customers and now is the time to take advantage of the many 0% introductory offers available today.
Getting A Better Interest Rate Is Not So Hard
When we apply for any type of credit our financial history is always taken into account. It is therefore very prudent to make sure your credit rating is as high as possible in order for you to be offered the best deals. We can ensure this happens by following simple steps that will open many doors that were previously closed!
Prevent Identity Theft
Identity theft is fast becoming the major way in which criminals are stealing your money. They are not only stealing your money but they are stealing your identity, using your personal details to gain access to your credit and open up new accounts in your name redirecting the mail to a new address.
Why You Should Have A Credit Card In Your Own Name
If you have ever been asked by your wife, husband, child or friend to have someone else as an authorised signatory to you, i.e. a supplemental signatory, on your credit card account you no doubt gave the following some serious thought. We discuss the reasons why both persons should have a credit card in their own name.
Using Your Credit Card While On Vacation
Many of us are always trying to save interest and charges on our credit cards, however, there are some charges that we may be unaware of. While you are relaxing on vacation you could be running up extra charges and interest while using your credit card abroad. It always pays to read the small print!
Credit Cards For Adverse Credit History
The credit card market is seeing a boom with numerous market players. It has created a kind of choice chaos or rather a clutter. It is important to differentiate between a good and a bad market offer and ones that are specifically targeting people with a poor credit history.
What Are Interest Free Credit Cards
Credit cards that charge no interest on your purchases or on your balance transfer for a certain period of time are said to be interest free credit cards. This interest free period is for a certain time and limit.
Credit Card Stoozing – Time To Stop Snoozing
The term “stoozing” is used to describe a method of using a credit cards credit limit to make extra cash. This can be done legally by using 2 credit cards with 0% introductory deals and a high interest savings account.
Use Your Credit Card To Have A Merry Christmas
For many people Christmas is not a time of cheer but a time when they worry about rising credit card debt. By keeping a close watch on their spending and repayments many find that they very quickly get out of debt. The steps I have shown below are very simple but they are very important.
Assumptions in Credit Repair
When it comes to life the majority are always assuming, and the most of them assume the worst. Creditors, debtors or anyone today all base their theories on assumptions and assumptions from the beginning of time have caused nothing but failure. When people fail to pay their bills on time, many of th
Say Hello To Those 0% Credit Card Deals!
Many of us are not offered some of the best 0% credit card deals available simply due to the fact that our credit rating is not high enough. Often this is not due to previous bad debts but the credit card companies inability to look at your previous credit history. You can help them by making sure you are on the electoral roll and by always completing credit applications truthfully.
Credit Cards Bring Festive Cheer
As Christmas approaches many of us have the worry of how to afford to pay for the many gifts we plan to give. It is very easy to use your credit card, however, there are many people who do not realise that they can make purchases and not have to pay any interest for up to 12 months! There are currently a number of credit card that allow you to do this. Please take advantage of these fantastic offers.
Using 0% APR Credit Cards to Become Debt-Free
Find out how to use a 0% APR credit card to pay off your debts and become completely debt-free.
Credit Card Minimum Payments Create Debt
A minimum payment to a credit card debt should always be avoided. Many people fall into a debt trap they find harder to get out of by only making minimum payments to their credit card debt. The credit card companies have not helped this problem by reducing many of their minimum payments to 2% of the balance. In our view this is far too small and only encourages people to spend money that they cannot afford.
Super Balance Transfer Credit Cards
Super balance transfers are a fantastic way to make some extra cash. Imagine being able to use your credit card companies money and put it in a high interest bearing savings account. Every day thousands of consumers are using this very same method. Take time to read through this article and find out how it is done.
Make Money With A Cash Back Credit Card
If you pay your credit card balance every month and do not incur any interest charges you would be wise to look to start using a cash back credit card. The cash back credit card has been produced primarily for users who do not pay interest and rewards them with an annual payment.
Using A Credit Card To Fund Your Business
More and more people are using their own personal credit card to fund their businesses. While this may be satisfactory in the short term, going down this route can create many financial headaches at a later stage.
Save Money By Understanding Your Credit Card
A recent survey has discovered that many credit card holders do not understand how interest is charged to their credit card balance and are unaware that they could be paying extra interest over and above what they should be paying.
Are We Underestimating What We Spend On Credit Cards
A recent survey has found we do not realise how much we are spending while using our credit cards. This can often lead to debt problems that can easily be avoided.
Monitoring Your Credit Is Easy As 1-2-3!
Thanks to the FACT(Fair and Accurate Credit Transactions) Act, all U.S. residents will be allowed one free credit report annually from each of the three major credit reporting agencies - Equifax, TransUnion, and Experian. This legislation makes it easy for you to keep an eye on your credit profile throughout the year easy as 1-2-3.
Avoiding College Credit Card Traps
Congratulations college freshman! You're about to embark on one of the most exciting times of your life. By now your parents, siblings, and friends have offered you all kinds of advice on how to make your transition to college smoother - how to get along with your roommate, what classes to take and which ones to avoid, where to find the best off-campus food, and how to stay safe on campus.
Identity Theft and the Internet
LexisNexis, a provider of personal and financial data, recently reported that the personal information of as many as 310,000 people nationwide may have been stolen. This figure is nearly 10 times higher than the original figure disclosed last month by the company.
Be Cautious When Using Your Nest Egg as an ATM
About five years ago I moved from the ranks of being a renter to that of being a homeowner. Now, not a week goes by that I don't receive some type of offer through the mail encouraging me to refinance my mortgage, open a home equity line of credit (HELOC), or apply for a home equity loan.
New Credit Scoring Model Could Help Millions
Mark and Beth, a young married couple in their twenties, established a goal to buy a home within the first three years of their marriage before starting a family. They budgeted and used their money wisely in order to save for the down payment. Whenever they purchased something they always paid cash - no credit cards for them. Why waste money by paying interest to a credit card company ?
The Simple $10 Debt Elimination Solution
Ask a friend what resolutions they made for 2004 and your bound to hear them reply 'Pay off my credit cards.' Ask them how they planned on reaching that goal and many of them will not have a clear cut answer.
Credit Help For Renters And Others On The Horizon
Now renters and others can have their monthly payments tracked and reported to a new credit bureau. This can help poor and moderate income families obtain the credit they deserve.
Negotiate Your Way To A Lower Credit Card APR !
Explains how consumers can often lower their credit card interest rates and save money with one simple call.
Identity Theft Scams
Reviews internet scams used to obtain personal information and commit identity theft.
How Healthy Is Your Credit ?
Outlines 5 key tips to consider when reviewing your personal credit report.
Debit Card vs. Credit Card, What Are The Differences ?
Explains the basic differences between a credit card and a debit card and the need to be educated about their uses.
|
|
|
