Credit Card Terminology for Married People

Learn About Terms Commonly Used by Banks for Married Customers

Nov 15, 2009 Armand Famiglietti

From learning about co-signing, to joint accounts, joint credit and more, it is imperative for married credit card holders to understand the terms used by the creditors.

When it comes to joining hands in matrimony, one of the least romantic topics is to bring up credit history or how to align all of the credit card accounts between two people. After all, until this point, each person has had his or her own individual credit accounts, based on his or her own individual credit score. But once two people get married, their credit history becomes intertwined as well.

Here is a look at a few common terms that people may run across when tying the knot. Understanding these terms will help the marriage get off on the right start to building a healthy financial future.

Authorized User

An authorized user is a person who has been given permission to use the credit account of another individual. This is popular for situations such as parents allowing their children to use their credit card, or when one member of a couple gives permission to the other person in the relationship. To add an authorized user, simply contact the credit card company. It should be noted that just because someone is an authorized user does not necessarily mean that person is responsible for the debts on the account. Read the credit card agreement for further clarification.

Co-Signer

A co-signer is a person who signs onto a credit account and shares the joint responsibility of paying off any debts on defaulted accounts. Many people use a co-signer when trying to establish or repair credit history. In a marriage a co-signer may be used if one person doesn't qualify for the amount of credit needed for a loan. For instance, when purchasing a car, a co-signer may be needed to qualify the individual for the loan.

Joint Account

A joint account is a bank or credit account that is equally shared by two people. This differs from a co-signer in that a co-signer may be responsible for the debts in case of default, however, the co-signer may not have his or her name on the title of the property. A joint account also means both parties have equal access and rights to all monies that are shared in the account. Many married couples open "joint bank accounts."

Joint Credit

Joint credit is used by two people in a marriage when they are trying to apply for something that neither would qualify for on their own. For instance if the credit card company needs a minimum income of $40,000 per year to extend a line of credit, and each person makes $35,000, then both incomes would be needed in order to qualify for that line of credit.

Learn About More Credit Card Terms

For more information on credit card terms commonly found, check out this article on basic credit card terms. Also, check out this article on student credit card terms for friends or family in college.

The copyright of the article Credit Card Terminology for Married People in Family Finances is owned by Armand Famiglietti. Permission to republish Credit Card Terminology for Married People in print or online must be granted by the author in writing.

A Credit Card With a Joint Account!