Re: Credit Card
pyaari
this info will help you.
Routinely, people in credit trouble are advised that one way to rebuild their credit is to get somebody – their mama, daddy, grandparent, or friend – to add them on a credit card as an authorized user.
Piggybacking, in most cases, is a great deal for the person trying to establish credit or get a boost to their bruised credit history, according to Jonathan Alper, Florida bankruptcy and asset-protection attorney.
Treatment of authorized users can vary by card issuer. But generally, adding an authorized user to your credit card account lets the credit history of that particular card be transferred to the new user’s credit files. Positive and often negative information on the card can be added to the authorized user’s credit files.
The authorized user has your permission to use the card, but he or she has no contractual responsibility to repay any of the charges on the card, according to Rod Griffin, a spokesman for Experian, one of the three major credit bureaus.
Clearly, if someone is trying to improve their credit history, they should only be added to an account in which the cardholder has had the card for a long time and used it wisely – paid the account on time and kept balances low. That positive information can significantly help the authorized user’s credit scores.