Some credit cards allow you to list other “authorized users” such as other family members on your credit card. This is what I want to know: suppose one of the authorized users has serious bad credit (i.e. bankruptcy); can that effect the credit rating of the primary cardholder?
Not anymore. As a result of a class action lawsuit, it won’ t be reported on the primary record. Actually, that was not all that common anyway, but at one time it was common to see an authorized user listed as having an account included in bankruptcy when the account holder went belly up.
Anyway, it used to happen as little as 2-3 years ago. Now, it won’t show up on the other person’s credit report…either way.
Philster,
Does this mean when I file bankruptcy this week, my wife’s AU but non-joint trade lines won’t show up as included in bankruptcy on her reports?
Will these credit vendors report at all on her report?
It means just that.
Will they report the item on her file anymore? Hmm…it might be different for each vendor/data furnisher. Some might drop the rating, or show it as it last appeared. Some are getting away from reported AU accounts.
Just give me the name of the accounts in questions (such as American Express, Citi, etc). Nothing more…no #'s or anything.
When I’m in the office on Monday, I’ll ask around.