Credit card cosigner rights - you don't have any
That pretty much sums it up. If you want to cosign for someone and wonder if you have any rights as a cosigner, I can tell you right way - you have only obligations and liabilities. You serve as a financial backup in case the party you cosigned for can't or don't want to pay. If the account holder defaults, the credit card issuer will gladly hold you responsible for bringing that account up to date. And those delinquencies will show up on your credit report. So basically, as a credit card cosigner, you sign all rights away the minute you put your signuture on the card application.
As a cosigner, you have no rights to request any of the following,
- to be notified about credit card limit increase
- to be notified about late payment, you would learn when it is 60 days late
- to be notified about large transaction
- to be notified about foreign transaction
If you want to have all these rights and then some, you should simply add the other party to one of your existent credit card accounts as a joint account holder. You will be totally in control and still help him or her to establish or rebuild credit. The right way to do this is to open a new credit card on your name with credit limit which make sense for a would be joint account holder. No more than $500 for a student and no more than $1,500 for a gainfully employed young adult. Then after as year or sometimes as little as 6 months, your joint account holder can move on and get his or her own credit card, with rights and liabilities.
More resources,
Cosigning a loan - things to consider before cosigning
Is cosigning car loan different from cosigning other loans?
Cosigning a student loan
Cosigning loan
Co signing a mortgage
Wed Feb 16, 2011 10:02AM | Copyright: www.bad-credit-advisor.com | More in Credit Repair Tips | Comments (0)
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