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Established Member
intlschizo
Posts: 30
Registered: ‎05-26-2007

Can I transfer an entire card?

If I make my sister a joint user for a credit card, then remove myself as an authorized user, will she have a card solely in her name? I wouldn't care if it reports as closed or anything - the card has perfect history - but it's obsolete to me and I don't want it anymore, while she has a BK and a repo from AGES ago and can't even get a secured card. I'm going to close this card (Orchard Bank) if I can't transfer it to her, but I was wondering if it was possible to pay to zero and put it in her name before I do.
Valued Contributor
jmbfl
Posts: 1,185
Registered: ‎03-04-2008

Re: Can I transfer an entire card?


intlschizo wrote:
If I make my sister a joint user for a credit card, then remove myself as an authorized user, will she have a card solely in her name? I wouldn't care if it reports as closed or anything - the card has perfect history - but it's obsolete to me and I don't want it anymore, while she has a BK and a repo from AGES ago and can't even get a secured card. I'm going to close this card (Orchard Bank) if I can't transfer it to her, but I was wondering if it was possible to pay to zero and put it in her name before I do.

You can make her an AU on the card. It will still be your card.

 

You may be able to make her a joint owner of the card. In that case you will be jointly and severable liable for card. In other words, if will still be your card. If will be her card, too. Both of you will be on the hook.

 

Unfortunately the only way to remove an owner from an account is to close it. This is true of any joint account. This is just one of the reasons why joint credit is a super bad idea.

Established Contributor
Posts: 513
Registered: ‎04-03-2007

Re: Can I transfer an entire card?


jmbfl wrote:

Unfortunately the only way to remove an owner from an account is to close it. This is true of any joint account. This is just one of the reasons why joint credit is a super bad idea.


 Actually Bank of America will remove the primary (joint) "Co-Applicant" party under the following conditions. The primary co-applicant fills out a form requesting to be removed from responsibility of the credit card. The secondary co-applicant needs to have sufficient credit history/scores and income to justify sole responsibility of the credit line.

 

 This is how to perform the transition at BoA.

 

 A person with an existing (no longer needed) BoA credit card can add another person as AU. The Bank will report the tradeline on the AU's credit history.

 

 After the AU uses the card for a while he should ask to be jointly responsible for all of the charges on the credit card. BoA gladly will change the AU's status to joint although the original card holder is still considered the primary (joint) account holder. BoA doesn't seem to care very much about the former AU's credit standing since the original card owner is still on the hook for all charges made on the account.

 

 Once the former AU has sufficient credit history to qualify for a credit card of his own with an equal credit limit, BoA is willing to remove the original "primary" joint account owner from the credit card. The original date of issue and highest amount ever owed stays with the card even when the former AU becomes the sole account owner.

 

 This is a fantastic opportunity for spouses and other family members. There are no shenanigans involved.  Over time it is not unrealistic for a family member who is an AU on a card to want to be upgraded to joint. I have no idea if other issuers will allow one co-applicant to be removed but, BoA does.

 

 BTW BoA may actually technically "close" this account under certain circumstances while completing the removal of the primary from the card. The bank then "reinstates" the original card as the sole responsibility of the former AU.

 

Mega Contributor
Creditaddict
Posts: 18,530
Registered: ‎10-23-2007

Re: Can I transfer an entire card?

that is not true that the only way to remove a joint is to close it. Many banks allow you to remove a joint card holder. you call the number on back of card and ask them, they usually send out a form that you both have to sign and say who wants to keep the card, they might pull credit and see if that person can be approved for the account on there own and then they remove the other person, if that person does not approve for the card, card will remain joint.

I have done this with Macy's, Nordstrom, Citi use to but stopped, Chase is probably hardest to do it with, not sure who else, each bank is different

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Valued Contributor
jmbfl
Posts: 1,185
Registered: ‎03-04-2008

Re: Can I transfer an entire card?

You are lucky. I know of no one who has been able to successfully pull this off. I suppose it might help in this regard if the balance on the account was zero. And I do know people who have been compelled to close an account to get their name off it. Also, FWIW, the processes both of you outline would require the relinquishing party to be living. It also sounds like there is a creditwothiness issue in this specific case.
Established Contributor
Posts: 513
Registered: ‎04-03-2007

Re: Can I transfer an entire card?

[ Edited ]

jmbfl wrote:
You are lucky. I know of no one who has been able to successfully pull this off.

It is not luck. There is nothing to "pull off". It is a legitimate honest ethical option provided by Bank of America.

 

 

 


jmbfl wrote:
I suppose it might help in this regard if the balance on the account was zero.

 

It is not a requirement to pay off the balance. I tend to agree that it is easier for a secondary joint account holder to qualify to assume a card with $0 debt instead of a high balance. :smileywink:

 

 

 

 


jmbfl wrote:
And I do know people who have been compelled to close an account to get their name off it.

 

That doesn't mean that nobody can remove his name from an account without it being closed.

 

 

 

 


jmbfl wrote:
FWIW, the processes both of you outline would require the relinquishing party to be living.

 

Intlschizo and his sister are both living.

 

Deceased people and joint accounts is a different discussion. :smileywink:

 

 

 

 


jmbfl wrote:
It also sounds like there is a creditworthiness issue in this specific case.

 

The whole point is creditworthiness.

 

AU... Joint... Sole account holder.

 

Over time credit worthiness improves.

 

When sister becomes creditworthy she can become the sole account owner. Until then the account must remain joint.

 

 

 

 CreditAddict has given a concise accurate informative desertion on the subject. He obviously has wider knowledge about the subject than my own first hand experience limited to Bank of America.

 

 

 

 

 

 

 

 

 

Message Edited by CreditAble on 10-12-2008 05:22 AM

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