Do Remember That You Re Liable For All Usage Of The Additional Card

Category: Finance, Credit.

Are you considering adding an additional card holder to your credit card account?

But before doing either, take some time to think about the decision first. It s a really easy process- usually just a quick and simple phone call or a few lines to fill in and submit on an online form. Adding another card holder to your account opens you up to a lot of additional responsibility. Please consider these do s and don ts of adding an additional card holder to your credit card account before requesting that extra card. Yes, you ll be completely accountable for any charges or other use of the extra card listed on your account. Do make sure you are adding a person you trust.

And some people are really great at using persuasion to convince you that adding them to your account is the right thing to do. I know this sounds really obvious, but impulse decisions are often easy to make. Don t ever add friends or non- immediate family to your credit card account. Think of it this way- it s all fun and games until the person makes a charge or purchase that you don t approve of. More often than not, doing so will destroy relationships in a blink of an eye. A situation such as this is a completely avoidable conflict. Do remember that you re liable for all usage of the additional card.

It s not worth letting it happen in the first place. It doesn t matter if you approve of the charges or not- by adding an additional card holder to your account, you re also agreeing to take responsibility for any and all of their credit card swipes. Don t add your children unless you re prepared to pay for any unwise purchases. If you do decide to add another card holder, be sure to review the details of your legal liabilities- they should all be there in the fine print to read before you add a new user. Let s face the facts, teaching our kids a thing or two about financial diligence is indeed our responsibility. Again, it s your credit card account and ultimately, you will have to foot the bill. But don t expect young adults with virtually no previous hands- on credit card experience to make the best decisions all of the time.

Do remember there s a reason someone needs you to add them to your account. If the credit card companies won t give them a credit card of their own, that means there s most likely some kind of issue with their creditworthiness. Ask yourself the obvious question before signing anything- why does this person want me to add them as an additional card holder to my credit card? Do you want to be the one to take this risk? The bottom line is simple- be safe by being sure to think through your reasoning thoroughly before adding an additional card holder to any of your accounts.