- People can add anyone as an authorized user, so unless you signed a form claiming liability for the debt in case of default, you probably won't have to pay it back, nor does it affect your credit, according to Credit Loan. You must make sure you are not a joint holder. On a joint account, both parties are liable for the debt.
- Some states have laws that assign liability for debt incurred during marriage to both spouses -- called community property law. Even if the spouse is just listed as an authorized user, or not at all, a divorce court can still "give" this debt to the authorized user. Thus, if a court orders you to pay a debt, it might be wise to pay it and then appeal the decision so the court cannot find you in contempt.
- The credit bureaus no longer give any weight to authorized users of a credit card, because so many people have added strangers in return for a fee. If a credit card company still reports credit card default on the authorized user's report, he can dispute this item. Even though an authorized user should not be hurt by a credit card default, there is no guarantee that the credit bureaus will remove the item. Thus, it is best to check your report whenever someone adds you as a user.
- Check your credit card agreement, because issuers make their own rules on liability of authorized users. Some card providers might make the authorized user liable for charges he makes. If, for example, the card has $2,000 in outstanding charges and the authorized user made $1,000 of those, the authorized user could be responsible for his $1,000. Primary holders might want to have authorized users sign a document that states the authorized user will reimburse the primary holder for purchases he makes.
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