3 Reasons You May Need a Credit Card Cosigner

3 Reasons You May Need a Credit Card Cosigner

There are multiple reasons why you might require a credit card cosigner. Common reasons for a credit card cosigner include the following:

1. The Credit Card Applicant Has Little or No Payment History

Having no credit history is a major roadblock to getting approved for a credit. Credit card companies generally require a credit card applicant to show some proof of their ability to pay their credit card debt. If that proof isn’t available, the consumer attempting to get a credit card may need to seek alternative options to build credit with a credit card.

2. The Credit Card Applicant Has Weak Credit Scores

When a credit card applicant has a low credit score (most credit card issuers consider a FICO® Score of 669 or below as fair or very poor credit score), a credit card company deems the card applicant a higher credit risk, and would likely reject the credit card application.

With a credit card cosigner who has strong credit scores (a FICO Score of 700 or above is considered a solid credit score), the chances of getting approved for a credit card using a cosigner is vastly improved.

3. Low Income

If the credit card application doesn’t have a strong, regular income, a credit card company may consider that applicant a risk to pay their credit card debt, and reject the credit card application. A credit card cosigner with a strong credit history and a proven stable and strong regular income can change that equation and help a credit card applicant get approved for a credit card.

One Last Tip on Having a Credit Card Cosigner

Once your credit scores improve and you’re in better financial health, you can contact your credit card provider and ask that the credit card cosigner be removed from the credit card account. If the monthly bills have been paid on time, the chances are good that the card company will allow the cosigner to be removed from the account and the primary cardholder’s name will be the only one remaining on the credit card account.

If you’ve done your homework, shopped around for the right credit card that allows a cosigner, and paid all your credit cards bills on time, your chances of getting a traditional credit card that doesn’t require a cosigner are greatly improved.

After that, it’s only a matter of time before you have your own credit card, can work towards healthy credit scores, and you’ve had a great learning experience as a credit card user under your belt.


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