Being a Authorized User Another person’s credit card can help you set your credit history. Parents help their children launch in youth. Can add. Or spouses can share an account, as a competent user with a spouse. But if the primary card holder dies, the authorized user is left in the lamb.
After the death of my grandfather earlier this year, my grandmother – a longtime authorized user on her husband’s cards – was left without anyone. Then there was a short uproar to find out if the credit history, which he had established, can qualify for a new card.
In this case, she managed to qualify for several cards, but it was a mixed bag in terms of how the issuers responded. Someone immediately. He offered the same card under a new account in his name. Another asked him to apply again, rejected it, and then approved it after another attempt to apply.
If you are a competent user, if the primary card holder’s account is closed for any reason (including death, as difficult as possible), this is a great move.
What to expect if you are ever in this situation.
You will not be responsible for any loan
If the primary card holder was in credit card debt, do not put pressure. You are Not on the hook For any of the
According to the Credit Card Product Manager Drew Tests in the Navy Federal Credit Union, the loan will be Paid out of the property of the deceased. “A real competent user is only authorized to use the account, but is not directly responsible for account health or payment.”
However, if you are also benefiting from the state, you may be affected. Any any debt you can pay for property payment will reduce the amount of money you can receive. And i Community Property The Federal Trade Commission noted that states, spouses can be responsible for credit card loans during their wedding.
You can find a complete list of community property states on the IRS.gov website.
Turn off the card use and call the issuer
If the deceased was a close relative of you, such as a spouse or a parent, you can work to resolve their financial issues. Notify Credit Bureau And they had cards at banks or credit unions.
(They may know from other sources, such as reports of social security administration, but is able to talk to them, so you know how to move forward with the account closure.)
Check your credit reports
Tsitos recommends Checking your credit reports To see which reports show cards or cards you were authorized. He says that when the bureau comes to report the payment activity, the card issuers handle the authorized users differently.
Once the releasing person turns off the card, you will see a closed account on your credit report. It can temporarily stick your credit score, as can be like if you were to be what if you were Close a credit card Your own
“You’ll see some difference,” says Tastus. “This is quite common.”
Apply for a new credit card
If you like your card account, the next step is to find and apply. The application will seek your financial information, and it can be difficult if you are a non -working spouse or You are retired And do not work for income.
However, you can report a refund from investment profits and interest, retirement accounts, social security, public assistance or even someone else’s help (says, financing another relative).
There is a place to start the card on which you were authorized, because you are “known” to the bank to some extent. You can also consider one Reserved credit cardWhich can be easy to qualify if you have a limited date of credit.
