GREAT IDEA FOR CREDIT CARDS COMPANIES
This is really not a bright idea, though it is really great for the credit card companies. What is done here is that you get a credit card and then assign your spouse as an authorized user. They did not sign the credit card contract and so are not under any penalty if the payment is late.
Or are they?
In truth, the authorized user is not under the same stipulations as the primary card holder that signed the contract, however, if the payment is late, the authorized user will be called (if they can’t get a hold or the primary card holder, or if they can’t get a payment from the primary card holder).
The creditor will threaten the authorized user that their credit will be harmed if a payment is not made.
BAD IDEA FOR CREDIT CARD AUTHORIZED USERS
This is completely untrue. The authorized user will not be sued, or have their credit score dropped or any other such thing. The person that signs the credit card contract is the person that will have any penalties if they don’t pay.
Also, if you do give another person the right to be the authorized user, it can open the door to misspending of the credit card resulting in “over the limit” fees and increases in the interest rates.
So, when you decide to make another person an authorized user, make sure you can manage the use of the card so you don’t suddenly find yourself having to pay for more than you had anticipated.