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Frequent Contributor
Myhearts
Posts: 276
Registered: ‎07-18-2007
0

Authorized User vs Joint Owner

Hey All,

 

Hearts here.  Is there a difference between AU and Joint Owner?  If you are an authorized user on an account and the account goes into default, would the AU be liable?

 

Thanks

 

hearts

I can and will be a part of the 700 club this year, because I can do all things through Christ.
Established Contributor
fender
Posts: 709
Registered: ‎04-20-2008

Re: Authorized User vs Joint Owner

AU has no financial obligations for the account, a joint-owner does.
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Frequent Contributor
Myhearts
Posts: 276
Registered: ‎07-18-2007
0

Re: Authorized User vs Joint Owner

Thanks for your response Fender.  Can you tell me what determines if one is a AU or JO?

 

Hearts

 

I can and will be a part of the 700 club this year, because I can do all things through Christ.
Established Contributor
fender
Posts: 709
Registered: ‎04-20-2008

Re: Authorized User vs Joint Owner

If I wanted to open an account with my wife as a joint owner, we would both have to apply, both of us would have to pass a credit check, both of us would be responsible for the debt.

 

You can add anyone as an AU, no credit check, no financial responsibility.  Your credit report will say "Authorized User" next to the account.

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Frequent Contributor
Myhearts
Posts: 276
Registered: ‎07-18-2007
0

Re: Authorized User vs Joint Owner

Thanks Fender.  I ask because I am an AU on a couple of DH's cards and he is filing a CHPTR. 13 and this is his debt not mine.

 

Hearts

I can and will be a part of the 700 club this year, because I can do all things through Christ.
Valued Contributor
Scamp
Posts: 2,791
Registered: ‎03-18-2007

Re: Authorized User vs Joint Owner

Myhearts, to protect your own credit score, you should ASAP contact the CCC's with whom you're AU and have yourself removed from those accounts.

_____________________________________________________________________________
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02/12/09 EX: 701 / 02/08/10 EQ: 719 / 02/08/10 TU: 723

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Established Contributor
guydiver
Posts: 564
Registered: ‎08-30-2007
0

Re: Authorized User vs Joint Owner

Yep. Scamp hit the nail on the head. Get out of that boat quick, before it sinks and takes your scores with it.
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Valued Member
Jstic
Posts: 43
Registered: ‎01-28-2009
0

Re: Authorized User vs Joint Owner

One thing some people don't realize is that if you are an authorized user, both you and the cardholder will get the same information reported to the bureaus. So if there is a balance of $1,500 on a $2,500 limit card, the $1,500 will appear on both of your credit reports as part of your total debt and usage percentage. I took my wife off of two of my cards where she was an authorized user and her credit score went up almost 20 points.
Established Contributor
fender
Posts: 709
Registered: ‎04-20-2008
0

Re: Authorized User vs Joint Owner

As stated above, have him remove you as an AU!  You dont bear any financial responsibility but FICO currently looks at it like it is your responsibility... 
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Frequent Contributor
Myhearts
Posts: 276
Registered: ‎07-18-2007
0

Re: Authorized User vs Joint Owner

Thanks you all!!  I will.  Do I have to send a letter or just call and ask to be removed?

 

Hearts

I can and will be a part of the 700 club this year, because I can do all things through Christ.

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