Benefits of the Additional Card and the Influence on Credit (2)

The influence of additional card on credit

Establish credit history with an additional card

Adding an additional card to others can not only help him build up credit records, but also lead to bad credit effects. The influence of the additional card on credit files is multiple, mainly:

• Credit card account

• "Age" of the credit card

• Credit card limit

• Expenses / arrears by credit card

• payments by credit card

If A has a credit card and adds the additional card of the card to B, the bank will collect B's credit information and report it to the credit bureau. For the credit bureau, even if it is not B's credit card, this card will also be treated as a credit card account and will appear in B's credit history. Therefore, in B's credit history, the number of credit card accounts and total credit limit will increase, and credit card consumption / arrears and refunds are also affected by that credit card. Although I mentioned before, the responsibility for refunding the credit card rests with the primary cardholder, and in the credit file all the consumption of the primary card and the auxiliary card will be reflected in the consumption. / B's credit card arrears. In addition, if A repays on time will also appear on B's credit history.

As for the “age” of credit cards, different banks have different reporting methods. For example, A applied for 1 Chase card and 1 Amex card in 2015, and added the additional cards of these two cards to B in 2018, then on B's credit report, the additional Chase card was opened in 2015 ( I.e. the opening time of the main card of A), and the opening time of the additional Amex card is 2018 (i.e. the opening time of the additional card of B).

If A repays the loan on time every month and changes the card to a smaller amount, then B's credit report will also reflect the favorable factors of "timely monthly repayment with fewer credit card arrears". thus improving B's credit Scores help B's credit history. If A doesn't repay on time and the credit card owes a lot, then B's credit history will have the downside of "not paying back on time and owe more ", This will damage B.

Therefore, I suggest that if you want to add an additional card for another person to establish their credit history, in addition to the benefits of the additional credit card, you should also carefully consider the credit card repayment situation. credit, and avoid adding too many arrears or late payments for others. Credit card. Those who wish to create a letter history by adding an additional card can refer to this checklist:

• Credit Card “Age”: Since the Chase Secondary Card is opened at the same time as the Primary Card, adding the Chase Secondary Card may extend the credit history of the Secondary Cardholder.

• Credit card arrears and refunds: it is recommended to choose a credit card with a small amount of arrears and no credit history as a late payment

• Additional card fees

• The advantages of the additional card

After adding an additional card, it is recommended to keep the credit card in good use and redemption condition, in order to help the additional cardholder's credit report and achieve the goal of establishing a credit file via the additional card.

Conclusion

Adding an additional card to others will allow others to enjoy the various benefits that credit cards bring and will also affect their credit records. Adding an additional card can help build a good credit history and can negatively impact credit as well. It is recommended that you do your homework before adding an additional card to understand the benefits of the credit card and the arrears / refund status.