Joint credit card accounts can be a hassle when trying to cancel them, should the relationship go sour with the other person, whether it be an ex-partner, a child, family member or a business partner. In the eyes of the credit provider, if two people can be held accountable for any debts incurred on the account, the better, as they can chase up two people for the money owed, and these two people have two incomes. Credit issuers view this as twice the income available to pay back any money owed, as opposed to one.

Is It A Joint Account, Or Are You Just An Authorised User?

Firstly, you may not have a joint account but may actually be an authorised used of the card. This can be a good thing, as it means you are not legally responsible for any debt, fees, charges or penalties that the account be incur. However, to prove this to a bank or financial institute when questioned, you need to find the original contract you signed, or ask them to provide a copy for you. This may not prove the most fertile exercise, as the credit provider may want to push the fact you are in a joint account, not just an authorised user. If this situation occurs, it is time to go to the three credit bureaus, and have them take a look at the matter. In about thirty days or so, you will have your reply. They will either let you know that you are an authorised user, or a joint account holder. You can then go from there, and see what your options are.
For a joint account, this can make the situation more interesting and a bigger headache. Yourself and the other name on the account are both responsible for the debt and repayments, even if you didn’t make the larger slice of the purchases. Legally, it is seen as your responsibility, and you will be treated that way. Read articles about: Compare Credit Cards and Citi cards.

Prepare To Cancel Your Credit Card

To prepare to cancel credit card in this instance, it is time to open up a new credit account and transfer the balance to there. Make sure the account is just in your name only, and speak to the other person about this. Hopefully, you will be able to come to an agreement as to what percentage is paid and by whom. You may end up having to repay more than you should, but that’s not a legal problem.

Side Affects Of Cancelling Your Credit Card

When cancelling the account, it may affect your credit rating. If the account is one of you longer accounts, your credit history will be shortened, and if you have been prudent with making repayments, this is removed from your history. In the possibility that your credit limit available is high, then your debt to credit ratio will be change significantly. Some carefully planning of your finances can have you back on track, however it may be a few months before you are back to a higher credit rating again. Opening a new card to compensate for the cancelled account may not be the best idea, and it is likely you will not be approved.