Credit Card for me in my dad's account?

Question

I'm not a genius when it comes to financial stuff so my dad handles all of it. Hes getting a Platinum Visa(r) credit card, on the application theres a optional section where he can add a second card. How does this process go about? If he were to add my name (for the second card) does that entitle me to being on his account without all my info like SSN etc? It says that it would make me a authorized user of his account and he would be responsible for all my transactions & charges. So whats it all mean? (((just to make sure, its clear but you can never be too sure about cards)))

Answer 1

Well, I made my mother an authorized user on one of my credit cards and the credit card is on her credit as well. Everything, whether it's negative or positive, will be reflected on both of you all's credit report and credit score.

Answer 2

As an authorized user you will have access to the account, it will show on your credit and will help establish your credit as long as you use the card wisely. You Dad can put restrictions on your card if he wants. You will not be liable for the debt your Dad will.

I was an authorized user on my Moms account for over 23 years and it helped me like you cant believe since 35% of your score is made up of payment history and another 15% by time in the bureau.

Answer 3

Use it very very rarely. I destroyed all my credit cards and handle my money the Dave Ramsey way.

Read your agreement letter by letter as credit card companies like to change policy with very little notice if any notice at all. You may find that 30 day grace turning into a 20 day grace and that so called "fixed" interest rate changing.

Beware of "rewards" and "airmiles" cards remember you get one airmile for every dollar you spend and an airmile is worth about 0.18 cents on average. Anyone who thinks an airmile = a dollar towards a ticket is very confused.

Proceed with great caution i know a few very wealthy people...not rich...wealthy (there is a difference being rich means you have money while being wealthy means you're WORTH money) who rarely use credit cards and pay them off in a hurry most don't use them at all. I know one who lets his daughter use a debit card with a daily limit.

Just remember credit cards are NOT cash they are financing through a bank with a limited grace period or no grace at all and ALL interest rates are subject to change. When you use it remember you're borrowing that money and if you go hog wild it's your dad's butt on the line.

Have your dad check out www.daveramsey.com

Answer 4

Adding you to the account will help establish your credit if he handles credit wisely. I added my daughter's name to my platinum card when she was in high school and college. Therefore, when she graduated, she had an established credit history and was able to apply for credit on her own.

Answer 5

He is responsible for the card and any debt associated with it. You are allowed to use the card (and yes, he can call and have restrictions placed on your card) You gain zero credit history for this card (you supply no information, no SSN, nada, zero zilch).

Answer 6

use it safely