Question about authorized user status

[CouponAddict]

I just pulled my credit report and I am an authorized user on my DH's CC.

I had to send the Credit Card Company a copy of my Power of Attorney when he was deployed to take care of an issue and wonder if that is when they put me on as an authorized user. I pay all the bills but if he goes on a shopping spree am I going to be held accountable because it is on my Credit Report also. I just need to be able to report fraud, identy theft etc if needed when he is deployed; I do not want to be held responsible if he goes out and max's the card.

I thought something was fishy when last year his credit limit went up by 1100% last year. I was uncomfortable with the credit limit on that card before but now that I wonder if I would be held responsible I am very concerned.

I am wondering if I should
#1. Call the CC company reduce the credit limit by 50%
#2. Call the CC company request not to be listed as authorized user
#3. Request in writing from the CC company that I will not be held accountable for activity on the card
#4. A then B

PS I have a strong feeling that if I do #2 that they will reduce the amount anyway.

Right now the amount of the card is about two months household income. I would be more comfortable with an amount that if stranded somewhere he could charge a rental car, buy gas, pay for car repairs, pay for a hotel stay, buy food, and if necessary buy a plane ticket. That is how I came to the 50% amount.

[noppenbd]

In my understanding, as an authorized user you are not responsible for paying the charges on the card (since AUs do not have to sign anything when the account is opened they are not responsible for paying the debt). However, your credit score could be hurt by having a delinquent account or high balance on it. To solve this you could ask the CC to remove you as an authorized user.

However, the elephant in the room is your financial relationship with your DH. It sounds like you do not trust him and IMO that is the bigger issue. If you cannot trust your spouse to spend responsibly then you have a serious relationship issue, not a money issue. Whether you like it or not, you are financially tied to this person and you need to talk about it together and get on the same page.

[Joan.of.the.Arch]

In my state I think I am legally accountable for all his bills and he is legally accountable for all mine, and that includes credit card bills whether both names are on them in anyway or not.

[jIM_Ohio]

Your married- his debts are your debts. For better or worse.

[CouponAddict]

In my understanding, as an authorized user you are not responsible for paying the charges on the card (since AUs do not have to sign anything when the account is opened they are not responsible for paying the debt). However, your credit score could be hurt by having a delinquent account or high balance on it. To solve this you could ask the CC to remove you as an authorized user.

However, the elephant in the room is your financial relationship with your DH. It sounds like you do not trust him and IMO that is the bigger issue. If you cannot trust your spouse to spend responsibly then you have a serious relationship issue, not a money issue. Whether you like it or not, you are financially tied to this person and you need to talk about it together and get on the same page.

Noppenbd- you are always so helpful, I just had to tell you that. Yeah that is the elephant, my DH has burned me a few times when it has come to $, so (once bitten twice shy or waiting for the other show to drop) comes to mind. I just dont know what to do about it because my Dh is an Orange personality - live for the moment, spender, party guy; and I am a Gold- Structure loving, saver.

Your married- his debts are your debts. For better or worse.

jIM_Ohio- Yes I am married, We have no debts anymore (besides the mortgage) and I am doing my best to try to keep it that way. I just do not know how to get my DH on the same $ saving mind set, so I am in a prevent fallout mode. That is why I want to find a way to reduce the temptation of the unrealistic credit card limit, or if I cant do that to reduce the aftermath.

[noppenbd]

I just do not know how to get my DH on the same $ saving mind set, so I am in a prevent fallout mode. That is why I want to find a way to reduce the temptation of the unrealistic credit card limit, or if I cant do that to reduce the aftermath.

There are two ways you can go about this. One is to try to protect yourself from the actions of your DH by limiting your liability, trying to restrict his spending, etc. IMO this will not work, because you have already said you are together in this marriage, and because you cannot force someone to change, they have to want to change. The other way is to appeal to him with the truth: you two are in this marriage together, both emotionally and financially. The fact is, whether you are legally liable for his debt or not, his spending affects you. If he has to put money towards a credit card that he has maxed out, that is money that can't be saved for retirement or down payment on a house. You need to appeal to the side of him that wants to save you from living in the gutter (I think most people have this side to them). Tell him how anxious his spending makes you and that you are worried that he is not on the same page as you. You really may have to pour your heart out to make him listen. You may have to compromise as well by giving him a certain amount of fun money that he will not have to report to you.

Once you are in agreement you can write up your plan together. Write down short-term goals (stay on a weekly/monthly budget, avoid impulse spending outside of fun money, etc) and long-term goals (save for a house, save for retirement, etc). Once they are written down, both of you sign the page and keep it somewhere that you can look at it from time to time. Then you really have something concrete that you can point to if there is a question about spending. You may want two copies so he can take one when he is deployed. Good luck!