So staying on the subject of commerce with compassion. I would like to discuss adding an authorized user to a credit card. Not to be mistaken with joint account holder, but that’ll be explained later. In addition, point out the benefits of the piggybacking method. Ultimately all methods can produce the desired result. Which, is to improve credit ratings.
SIMPLE ACT OF KINDNESS
Any addition with the intentions of progress is true benevolence. Adding an authorized user to a credit card is easy. With today’s technology most credit card accounts can be set up online or contact them by phone. Also, the authorized user’s info will be needed then they’ll be on their way to a higher score. In some cases AU’s will receive a credit card, but not with piggybacking credit. Depending on the credit card company there could be some limitations. A limit on how many authorized users can be added to each account. Again we’re focusing on creating a track record of reliability, so there’s absolutely nothing wrong with taking your time and getting it right the first time.
PIGGYBACKING’S NOT SO BAD
This score enhancing method has been taken full advantage of for quite some time now. Aside from not being held liable for any debt; the entire credit card account history will be added to the AU credit history. Piggybacking, primarily for credit building purposes can attribute to any positive impacts to your scores. And it doesn’t take long for the benefits to reap! Within 30 days of adding an authorized user to a credit card the history will reflect on the score.
WHAT’S DIFFERENT ABOUT A JOINT ACCOUNT HOLDER?
First let me explain what a joint account holder is; it’s a person added to an account. But the difference is a joint account holder is held responsible for debt as well. Another drawback would be that the joint account holder will have to undergo a credit check. AUTHORIZED users do not have any legal obligations to pay anything. Joint account holders are just as responsible for the account as the primary account holder. This method is better suited for a spouse, someone more long term. And unlike an authorized user, a joint account holder can not be added anytime. All on the account can benefit from a strengthened credit score. But can equally be affected by any missed, late, or neglected payment or excessive spending in any way.
LITTLE PIGGY SAFE AND SOUND
As long as the account is in good standings the AU can only wallow in the benefits. If the payment history should no longer meet its usual status quo of perfect, this can cause serious issues with the authorized user’s account. Another factor is the credit utilization ratio. This is keeping the balance on any card less than 30%. A what you use versus how much you have to use should not be above 30 percent. Simply put, spending way more than what can be covered/ paid back in a hasty manner. Leading to denials or higher interest rates. So initiate good credit utilization ratio practices avoiding these credit conflicts.
COMMERCE WITH COMPASSION
I believe having life lessons bring about strength, integrity, compassion, love, and self- empowerment. From whatever shape or form of life we come from we all can stand to have more smiles in our lives. Adding an authorized user not only instills personal growth and a sense of evolving but shows it as well. Isn’t that life is all about? Yes! Piggybacking does just that, personal growth. Growth in wanting to achieve something within yourself for yourself. To me that’s commerce with compassion.
If any questions regarding trade lines or services available offered by LenJan Consultant Services contact Nelson@lenjanconsultantservices.org or Thomas.firstname.lastname@example.org.