Credit Cards With Co-Signer Anyone?

Did you know that the Credit Card Accountability, Responsibility and Disclosure Act of 2009 prevents credit card issuers from giving out cards to consumers under the age of 21 unless the applicant has a co-signer or can show "an independent means of repaying any obligation?"

This means that you, as a student or young adult can qualify for a regular or unsecured credit card if you have a part-time job, some assets, meet the income and other requirements of the credit card. If you have no job or have no assets, you can, however, qualify for credit cards with co-signer. The same is true with those having tainted credit histories or those with no credit history at all.

What is a Co-Signer and Who can be a Co-signer?

A co-signer is an individual other than you, the borrower or the credit card applicant who signs an agreement to assume your liability in the case of your failure to pay. Acting as a guarantor, the co-signer is thus equally liable. Having a co-signer provides an opportunity to those wishing to establish a credit history and those wishing to repair a stained credit record.

Not everybody can be a co-signer, however. Only those who have a good credit history can serve as a co-signer. Not so many people will be willing, considering the risks involved with being a co-signer. If your parents or any family member are qualified and willing, then you can ask them to be your co-signer. Be sure that you really are determined to hurdle the challenge of financial discipline such as controlling your impulses for unnecessary spending. Important as well is strictly paying your credit card dues on time since 35% of your credit score depends upon this criteria. Remember that the credit card issuing financial institution will be reporting your performance to the three credit bureaus every month.

Be informed also that not all credit card issuers allow co-signers. Patiently do your research to find out which bank, credit union or any financial institution allows an unsecured credit card application. In the case of student credit cards with cosigner, some credit card issuers such as the Bank of America and Discover include in their student credit card solicitations that the law allows co-signers for them in place of the proof of ability to pay.

Why doesn't every credit card issuer accept co-signed credit card applications? According to TowerGroup, a leading research and advisory services for financial services industry, some institutions may be unwilling to deal with "the logistics" of servicing joint accounts. He says that with authorized users, "there's no question about who owns the debt." In other words, co-signed credit card accounts entail additional overhead costs which may not be worth it from the point of view of the credit card issuer.

Credit Cards for Students and Those without Credit Card History

Citi offers student credit cards requiring no co-signer as long as the student can show ability to pay. The following are some of the credits available to those wishing to build credit history. If you wish to apply to any of these, check their features and the finance rates to see which one suits your particular situation. Some of these are prepaid credit cards - a wider option for students under the age of 21 with no work or asset, or those in the process of credit building or credit repair.

o Capital One No Hassle Cash Rewards Credit Card
o Capital One Classic Platinum Credit Card
o Capital One Standard Platinum Credit Card
o Account Now Gold Visa Prepaid Card
o First Premier Bank Classic Credit Card
o Ready Debit Visa Prepaid Card
o Centennial Classic Credit Card
o NetSpend Visa Prepaid Card
o Capital One Reloadable Prepaid MasterCard
o Aventium Classic Credit Card

Every breath you will ever take in your entire life will be devoted to building a sound credit history - credit cards with cosigner can start you on such a journey to that never-ending goal.


Source: Credit Cards For People With Bad Credit Rating

 Print this page
  |     Bookmark this page