Credit Card Terms and Definitions for Newlyweds

Geting married will be one of the greatest and most memorable events of your life.  Financial honesty and communication are essential to the foundation of any relationship.  Make sure you and your current or future spouse are both informed about credit terms so you can communicate affectively and make the right decisions together and for each other.

Additional Cardholder

When you have a credit card, it is often possible to add an additional card to the account for use by someone else. The main cardholder remains responsible for making payments on all charges made, whether by the original cardholder or the additional cardholder.

Authorized User

A person given permission to use a credit card account.

Co-Signer

A joint signer of a credit card application with the principal applicant. Should the principal applicant default on what he owes, the co-singer is responsible for paying the balance due.

Credit Report

If you have ever applied for a credit card, a personal loan, or insurance, there is a file about you. This file includes where you work and live, how you pay your bills. It even includes whether you have been sued, arrested, or filed for bankruptcy.
Credit Reporting Agencies gather and sell this information to creditors, employers, insurers and other businesses. Periodically check your credit report for accuracy to know what has been reported and correct any errors. To check on your credit report contact the three major national credit bureaus: Equifax, Experian and Trans Union.

Credit Score

A credit score is a three digits number that summarizes how well a person or business has handled debt. Higher numbers indicate a better credit rating and allow for larger loans and better interest rates. Low numbers will indicate a worse credit rating and therefore borrowers will have terms with higher interest rates, less amounts available to borrow and may be turned down for loans or lines of credit. Though there are a variety of indicators of credit, the best known and most widely used system is the Fair Isaac Corp. (FICO) product.

Joint Account

A joint account is a bank account equally shared by two or more individuals. Parties involved all share the associated rights and liabilities of the account and are regarded by law as co-owners of the account. This means that if anything happens to the account, such as defaults, overdrafts and fraud, all parties are affected.

Joint Credit

Credit offered to a couple based on both of their assets, incomes and credit reports. The couple usually qualifies for a higher credit limit but both parties are liable for the debt.