Will You Be Allowed to Initiate A Balance On A Credit Card That Is Not Yours?
There are a lot of people who opt to transfer their balances into another credit card account and become a joint or authorized user on it so that they would be able to avoid high interest loans for bad credit on their $5000 loan. This agreement though could do a lot of damage to you as the card holder and to the person who joined your account.
Before we get to the gory details, let us tackle the benefits of this set up first. The person who is transferring their balance will get a lower interest rate on your card. This is of course given that you've been able to take care of your credit thus resulting to a good interest rate.
Another good thing about it is that you would both be able to help each other out getting a better credit. If the other person had bad credit, you would be able to influence the increase of the same by continuing to handle your credit card well. The best thing that could happen is if the both of you have great credit. In this way, you could be able to look at building credit as teamwork.
The bad thing about letting someone in your credit card account along with their baggage is that you might end up taking on all his or her debt. The other person had the responsibility of paying his balance especially after the transfer has been completed but if they will not be able to do their part of the bargain, then you will be in a lot of mess.
Another thing is that if this person has no idea how to conscientiously use his credit card, you're credit score will be badly damaged. Before getting into an agreement like this, you have to check all the details as you might lose in the end.