JOINT vs. AUTHORIZED USER

[MissExcellentCredit]

Hi everyone.

Will someone please explain the difference between JOINT and AUTHORIZED USER?

Here is my understanding.  Please advise if this is right or not:

JOINT - Both spouses are liable for the debt on the card, regardless of any divorce decree.

AUTHORIZED USER - The spouse who is an authorized user is NOT responsible for the debt and cannot be forced to pay.  In fact, they can request to be removed as an authorized user if so desired.

Thanks!

[MarineVietVet]

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@MissExcellentCredit wrote:

Hi everyone.

Will someone please explain the difference between JOINT and AUTHORIZED USER?

Here is my understanding.  Please advise if this is right or not:

JOINT - Both spouses are liable for the debt on the card, regardless of any divorce decree.

AUTHORIZED USER - The spouse who is an authorized user is NOT responsible for the debt and cannot be forced to pay.  In fact, they can request to be removed as an authorized user if so desired.

Thanks!

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I believe everything you wrote is correct AFAIK (As Far As I Know).

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[haulingthescoreup]

joint = (co-)ownership

authorized user means simply that, authorized to use the CC

The only asterisk I would add is that authorized users on American Express are (potentially) responsible for the charges made via their AU cards, which have different numbers. If the cardholder defaults, AmEx will try to get partial payment from the AU.

[MarineVietVet]

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@haulingthescoreup wrote:

joint = (co-)ownership

authorized user means simply that, authorized to use the CC

The only asterisk I would add is that authorized users on American Express are (potentially) responsible for the charges made via their AU cards, which have different numbers. If the cardholder defaults, AmEx will try to get partial payment from the AU.

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Thanks for adding that HTSU. I keep forgetting that little but very important caveat.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[MissExcellentCredit]

Thanks to all.

[Anonymous]

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@haulingthescoreup wrote:

joint = (co-)ownership

authorized user means simply that, authorized to use the CC

The only asterisk I would add is that authorized users on American Express are (potentially) responsible for the charges made via their AU cards, which have different numbers. If the cardholder defaults, AmEx will try to get partial payment from the AU.

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Not only American Express.  USAA and a number of other major lenders have learned from AmEx.

Not only can they sue you over the debt, they can report the negative on your credit report. 

Always read the contract.

[MissExcellentCredit]

I'm an authorized user on one of my hubbies cc's.  It's showing up on my credit report.  No harm though, it's helping because of his good payment history.  But I thought that only cards on which I might be a joint owner would show up on my report.  Someone please advise.  If I'm an AU on my husband's card, that will consistently show up on my report and affect my FICO score?

[MarineVietVet]

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@MissExcellentCredit wrote:

I'm an authorized user on one of my hubbies cc's.  It's showing up on my credit report.  No harm though, it's helping because of his good payment history.  But I thought that only cards on which I might be a joint owner would show up on my report.  Someone please advise.  If I'm an AU on my husband's card, that will consistently show up on my report and affect my FICO score?

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Yes and that can be a good thing for your credit as long as the account stays in good standing. You inherit the entire history of this account.

But if the account goes bad that also will reflect on your credit.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[haulingthescoreup]

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@MarineVietVet wrote:

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@MissExcellentCredit wrote:

I'm an authorized user on one of my hubbies cc's.  It's showing up on my credit report.  No harm though, it's helping because of his good payment history.  But I thought that only cards on which I might be a joint owner would show up on my report.  Someone please advise.  If I'm an AU on my husband's card, that will consistently show up on my report and affect my FICO score?

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Yes and that can be a good thing for your credit as long as the account stays in good standing. You inherit the entire history of this account.

But if the account goes bad that also will reflect on your credit.

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But the advantage to being an AU is that if you do want the card to stop showing on your reports, you can take yourself off of it. The next time the card updates, the AU account should disappear. Sometimes they still keep updating, and then you would dispute as "not mine", and it should be removed.

[MissExcellentCredit]

Good to know.  Thanks to all.