Having seperate credit cards

In this economy we have seen so many credit reports that have had dramatic decreases in scores.  Most people don’t know that one new late payment could drop your score 100 points whether it is for $10 or $10,000,000.  So if you have many new late payments your score will take a huge nose dive.   This is one of the many reasons why couples should have separate credit.  If one person loses their job and creditors can’t be paid on time a decision can be made to default, on credit, in one person’s name rather than have both individuals credit scores be ruined.   Joint accounts mean both parties will suffer a negative record when a late payment occurs.

Authorized users are not in the clear either.  A few years ago the laws were supposed to change to stop authorized users from ending up with better or worse credit scores.  The idea was if you are not the primary card holder you should not benefit, or suffer, from accounts that were someone else’s.  This new rule was thrown out.  If your son goes to college and he is given a Amex card , as an authorized user on your account, if you default he will suffer the consequences of poor credit.  If you have had a past negative history he could wind up with that on his credit as well.

“Great credit brings great opportunity”



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