Difference between Co-signing

This is a topic that often gets people confused. Is co-signing the same as being an authorized user on a credit card account? To best answer this question we need to keep in mind that for credit cards, there is no cosigning instead you are known as joint account holders.This means that both names that are on the account and are RESPONSIBLE for the debt. Usually, this happens with married couples. If they are joint account holders both are responsible for the debt.
Once someone is an Authorized User, it’s different. Even though they are allowed to use the credit card, they are NOT considered responsible for the debt, however the debt may impact you when applying for a loan. It can often be confusing the type credit and how each can affect us depending on the status. If you find yourself lost in the way credit works, don’t hesitate to call Credit Services of El Paso. We will be more than happy to help you with all your credit and debt needs!

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