Oh man, isn’t it wild how being just an “authorized user” on someone else’s credit card can kind of snowball into this big thing when they pass away? Like, you’re just there to make things convenient, and then bam – you’re left with a card that’s in some sort of credit purgatory. I’m not even sure why, but this idea really stuck with me after my grandpa passed away. My grandma, bless her heart, was always just cruising along as an authorized user on his cards, living life, and suddenly, she’s got no cards with her own name on them. Totally threw her off, you know?
So, picture this: after he passed, she was in this scramble to see if she could actually get approved for a card herself. Turns out she did – but not without some hiccups. One issuer kind of went, “Oh sure, here’s the same card just with, um, your name now.” Easy peasy, right? But then another one went all stickler and said she needed to reapply, denied her, and after like another try, said, “Oh wait, okay, you’re good.” Really kept us guessing.
You know what’s smart? Having a game plan for when the primary cardholder—sorry to get morbid—kicks the bucket or whatever. I guess better safe than sorry, but talking about it is awkward, isn’t it? But if you don’t, well, you might find yourself in a bind.
Anyway, here’s the thing you gotta remember: if you’re an authorized user and the cardholder has debt, chill because it’s not on you. Phew, right? According to some guy, Drew Tsitos, who’s like a credit card whiz at Navy Federal, the debt gets sorted out with the person’s estate. So, you’re not carrying that weight.
But—and here’s a kicker—if you’re inheriting from the estate, debts might chip away at that inheritance cookie. Also, in places called “community property” states, spouses might be on the hook for debts from the marriage. Fun times, right? Grab that list from IRS.gov if you’re curious. I mean, I couldn’t tell you a single community property state off the top of my head, but someone out there might care.
And oh, don’t forget, if the primary passes, stop using the card. Seems obvious, but when you’re in the thick of things, who knows what you’ll remember. Call the bank too. (They might already know somehow, but tell them anyway so you know what’s happening with the account.)
Hit pause and check your credit reports too. Apparently, issuers are all over the place in how they report authorized users. Once the account’s closed, your credit report will show it as closed, which might ding your score a bit. Yeah, fun. “You will see some variance,” Drew says. Sounds fancy, but basically, it means your score might wobble.
Now, if you’re eying a new card for yourself, do it. Cards are funny contraptions and if you don’t have a traditional income—like, if you’re chilling in retirement or something—you can still count investment income, support from family, or whatever. Crazy, right? It’s not just a 9-to-5 world, thank goodness.
A good starting point for a new card is where you were already an authorized user. They kind of know you, so it’s probably less of a hassle. Or hey, check out secured credit cards if your credit history’s a bit… thin.
So, there you have it. Life’s funny—and kinda chaotic. Cards are just a small piece of the puzzle.
