Saturday, June 2, 2007

Credit Cards with a Co-Signer

With co-signed credit cards, the co-signer guarantees and is responsible for the debt. This means that the co-signing person is responsible for paying the full amount of the debt if the card holder doesn't pay. In fact, when co-signed debt goes into default, three out of four times co-signers are normally asked to repay what is owed, according to the Federal Trade Commission.
Furthermore, the issuing bank can attempt to settle the debt without first trying to collect from the card holder. The bank can also use the same collection methods against the co-signing individual, including suing and garnishing wages. If the debt is not paid, it can leave a negative mark on the credit history of the co-signer, as well as the card holder.
Despite the risks, a co-signed credit card can be great tool for helping a friend or relative build their credit history so they can one day obtain a card on their own.


3 comments:

Muddassar Shah said...

So many credit cards companies are best and they offer very user-friendly credit cards.
Plastic Card.

Muddassar Shah said...

A credit card is different from a charge card.A credit card is a way of payment by using the plastic cards which are issued to customers for their payment.
PVC cards

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