Instant
Approval Credit Card: Popular cards, some are instant approval or guaranteed cards.
Some cards give people the chance to rebuild credit using a card offer.
Instant
approval cards are good cards so most anyone can qualify. Instant approval
usually means no credit check, no minimum income, no bank account required, and
may report to the major credit bureaus. Many instant approval cards may even
offer rewards or some type of bonus points.
Credit
Card, What is an Authorized or Joint User on a
Credit Card Account?
A
person who has a credit card is able to add a person on the account as an "authorized user".
The user is not responsible for making payments but can have a credit card and
make charges on the account. This can be good or bad for the cardholder. For
example, if the authorized user abuses the account by making thousands of
dollars of charges, they are not responsible for paying the bill. The cardholder
is responsible for paying the credit card debt. For example, if an elderly
parent wants to add their adult child to an account, in order for them to make
purchases they request, if the parent can trust that they will not rack up
charges, it could be helpful to the parent. But if the child decides to over
charge, the parent will be responsible for the bill.
A joint account
holder can be another option for having someone on a credit
card account. A joint card holder is just as responsible for paying the
credit card balance. Any and all joint cardholders are responsible for the debt.
This type of account is usually done with a spouse, partner, or young
adult in order for them to be able to pay bills or make other purchases.
It is one way to make managing finances easier, unless one of the joint account
users abuse the account by making excessive credit card charges that they may
not help pay off.
Having
joint accounts would require all cardholders to consider discussing charging privileges,
credit limits, and how to pay off the balance each month. Not having some rules
for using the cards, could encourage some users to make excessive charges on the
credit card, and later not contribute to paying their charges. It can be easy to
find out later, if someone has charged thousands of dollars and that they don't
care to pay it. Take the time to generate some rules for using joint credit card
accounts and monitor the account weekly to catch any possible problems. For
example, one rule might be to limit the charges per month, per card holder.
Another rule might be that the account would need to be paid in full every
month. If there was abuse, it would not be possible to close the account unless
all charges were paid in full.
Having
joint accounts or an authorized user account, will affect all card holder's credit.
Take some time to decide if either type of account is the best way to proceed.
Having someone on an account that is not trustworthy or not responsible can only
result in some problems that may cause bad credit
scores. An example would be going over the limit credit. The worst example
would be, if a card holder charged $10,000 in credit card debt. It helps to have
people on an account who can work together and abide by rules for using a credit
card account.
