Sharing A Credit Card

When you read this title, probably you can tell me that I am getting crazy, but please, don't get me wrong. I can give you some advices that can help you to share your credit card "-obviously in a very relative way"- so that other members of your family can receive the benefit of that. When we talk about sharing your credit card, we are not going to share the credit card itself, what you are going to do is sharing your credit card limit. There is an advisable way you can do that so that members of your family "sons, brothers or even your parents"- can have a secondary no fee credit card where they can make expenses and use this card to purchase items in the Internet but is your responsibility makes the payments of this credit card.

This is something simple to do but you should be aware of that because this practice is only applied for people that you can trust because, as matter of fact you have full responsibility of the payment of this secondary. In the following lines, I will describe some benefits of that and several recommendations that are good you follow to share your credit card with people you trust and that are going to make a proper use of this payment instrument.

-Determine if you have full responsibility to pay debts for secondary credit card holders: It is important that you can evaluate the types of secondary credit card that you are going to authorize for this person you trust. There are secondary credit cards that when you sign the contract the secondary credit card holder have the absolute responsibility to pay debts but there are other issuing banks offering secondary credit cards where the primary holder is the one that should pay all debts for the primary and secondary credit card. Also, you can have more than one secondary credit card.

For instance, you can have a credit card limit of $5000 and you distribute your credit card limit in $3500 for you "-as the primary credit card holder"- then you have $500 for Luisa who is your 18 years old daughter and a second secondary credit card that is for Mark "-who is your 20 years old son"- of $1000. In this example you can see a primary credit card holder and two secondary credit card holders. In some cases, the primary credit card holder should pay for all expenses and consumes made by Mark and Luisa.

-Avoid your sons use your credit card: It is good that you can control that and, authorize a secondary credit card for your some is an alternative to give them some of financial independence as well as more security for you.

-Evaluate available options from issuing banks: Investigate about the offers banks can provide.

-Have absolute control of payments: Verify that payments are made because an inappropriate use of secondary credit cards can affect your credit score.