Reasons Why Obtain A Credit Card in Your Own Name by: www.newhorizon.org
Must you obtain a credit card in your name? • A few maried folks decide to get only one credit card account, in the name of the spouse, while the other spouse is an authorized user. • Although this set up works for a lot of couples, it remains a smart idea to think about getting at least one credit card account in your name. Why is this important?
Credit Cards and Credit History • To comprehend the importance of getting your own account, let’s discuss your own personal credit history. • Everyone should build his/her own credit history. • HOW? This can be done by acquiring different types of credit in order to show your ability of handling debt and repayment. Creditors report your activities to the three major consumer credit bureaus.
Credit Cards and Couples What will happen when a couple shares just one account? • If the credit card is in the name of the husband or the wife, the activities reported will only reflect on one spouse’s credit history. • Even though the other spouse is an authorized user and uses the account regularly, the activities will not be reflected on his or her credit report. • Obviously, only one person benefits from the account with regards to building credit.
As a result, while being an “authorized user” is not actually an awful idea, getting a personal credit card account is advisable with the intention of credit building. • Take note that becoming an “authorized user” is far not the same as a joint credit card account. • If a couple decides to open a joint credit card account, each of their credit activities will be reflected with their credit reports.
As owners of a joint credit card account, the two of you have the obligation to pay for the charges or financial obligations incurred using the credit card. • If you are an “authorized user”, you can use the account for transactions but you are not responsible to pay for the charges. • Just the primary owner of the account has the obligation for repayment.
FOR MORE INFORMATION READ http://www.newhorizon.org/credit-info/why-get-a-credit-card-in-your-own-name/ LOOKING FOR CREDIT CARD FOR PEOPLE WITH NO CREDIT HISTORY? http://www.newhorizon.org/Info/unsecured.htm