Question

What is the difference between having a co-signer and becoming an

authorized user?

A. To be a co-signer, both people need to be over 21; to be an authorized user, you can
be any age

B. As a co-signer, you open an account and an adult signs on with you; as an authorized
user, you are added to someone's existing account

C. With a co-signer, you can open a credit card; as an authorized user, you can open any
type of credit account

D.As a co-signer you are responsible for the bills; as an authorized user you are not

Answer 1

Answer: The correct answer is D. As a co-signer you are responsible for the bills; as an authorized user you are not

Explanation: A co-signer is ultimately responsible for the account if the primary account holder fails to make payments and the authorized user is not. However, a co-signer does not have any ability to make purchases on the account, whereas an authorized user does. While the authorized user is NOT responsible for the account balance and charges, their credit can be negatively or positively affected by the account payment history.