FEATURED CREDIT CARDS

Milestone Gold MasterCard®

Milestone Gold MasterCard®
  • Quick & easy application
  • Pre-qualification available
  • All credit types considered
    *See Card Terms

Capital One® Platinum Credit Card

Capital One® Platinum Credit Card
  • Pay no annual fee
  • Platinum Benefits
  • For people with limited credit
    *See Card Terms

CreditSoup® Best Credit Cards

Indigo® Platinum MasterCard®
  • Low Interest Credit Cards
  • Rewards Credit Cards
  • Balance Transfer Cards
    *See Card Terms

What is a Co-Applicant Credit Card?




Qualifying for a credit card can be difficult, especially for young people who have yet to establish any kind of credit, recent immigrants, or for those with low income. For those in these kinds of situations, having a co-applicant can be advantageous.

What is a co-applicant?

A co-applicant is another person who signs onto the card with you. Similar to a joint-applicant for a loan, a co-applicant offers their personal information and the two of you share the benefits and responsibilities of the card together. It is common for husbands and wives to have joint credit cards, as well as parents who sign for their children.

How is a co-applicant different from an authorized user?

A co-applicant differs from an authorized user in a few crucial ways. Firstly, let's look at the similarities. In both cases, both parties are affected by the usage of the card on their individual credit report. The credit card reports monthly to the credit bureaus for any parties connected to the account, regardless of who incurred the charges. That being said, an authorized user is not the financially responsible party on a credit card. While the use of the card affects an authorized user's credit history, he or she is not held responsible for paying the bills on the card. A co-applicant, however is affected in terms of his or her credit report, and is also held financially responsible. His or her name on the credit card application is a promise to use the card responsibly and pay promptly and in full.

What are the drawbacks to having a co-applicant credit card?

There are serious dangers to having a co-applicant credit card. While teaming up with someone who has a great credit rating can certainly help a young person establish good credit, there are risks involved. As previously mentioned, a co-applicant has his or her activity on the card reported every month. So if your co-applicant decides to go on a shopping binge and use up a significant portion of the available credit, this will reflect badly on your credit. Likewise, if bills are paid late by either party, your credit score will negatively reflect this. Looking down the road even farther, should your co-applicant make a huge mess of the card, and rack up all kinds of charges and then skip town, you, as co-applicant, will not only be affected negatively by this in your credit rating, but you will also be held responsible for paying off the credit card and any interest charges that may have accrued.

It is important to deeply consider all the factors, as well as to contact your credit card company and find out their policies, before co-signing for a credit card.

About the Author:
Paul Basco Provides Expert opinions and reviews to help you Compare and Apply for a Credit Card Offers online. At GettintingaCreditCard.com, we offer low interest credit cards, 0% balance transfer credit cards, cash back rewards credit cards and much more.





Information in these articles is brought to you by www.GettingACreditCard.com. Banks, issuers, and credit card companies mentioned in the articles do not endorse or guarantee, and are not responsible for, the contents of the articles.

UGC Disclaimer: "The comments on this page are not provided, reviewed, or otherwise approved by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered."

FICO Credit Scores

A credit score is a number generally between 300-850, based on a statistical analysis of a person's credit files. This score represents the credit worthiness of a person. A credit score is assigned to each individual, to rate how risky a borrower he or she is--the higher the score, the less risk the individual poses to creditors. In most cases, your credit score will determine whether you will be approved for a credit card.

What is a Credit Score?

A credit score is a number generally between 300-850, based on a statistical analysis of a person's credit files. This score represents the credit worthiness of a person. A credit score is assigned to each individual, to rate how risky a borrower he or she is--the higher the score, the less risk the individual poses to creditors. In most cases, your credit score will determine whether you will be approved for a credit card.

Credit Score Facts

  1. Credit Scores range from 300-850, the higher the better.
  2. Most lenders base approval on your credit score.
  3. Higher Scores mean lower payments and better deals.
  4. Higher Scores mean Lower interest rates.
  5. Scores are determined by 5 main categories:
    • Payment History
    • Amounts Owed
    • Length of Credit History
    • Type of Credit Used
    • New Credit

Note: Credit scores are used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any credit card product.

Advertiser Disclosure:

The card offers that appear on this site are from companies from which www.Gettingacreditcard.com receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). www.Gettingacreditcard.com does not include all card companies or all card offers available in the marketplace.

Offers from Our Partners:

The card offers that appear on this site are from companies from which www.Gettingacreditcard.com receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). www.Gettingacreditcard.com does not include all card companies or all card offers available in the marketplace.