Additional cardholder pitfalls...

Options
I have a card which allows me certain privileges including a higher limit and fee free foreign spending/ATM withdrawals. Are there any pitfalls to adding a second cardholder for a short time to help them with their travels (who is not eligible for the same product) apart from the obvious... spending and doing a runner, which I trust them not to do.

Thanks

Comments

  • Willing2Learn
    Willing2Learn Posts: 6,294 Forumite
    First Anniversary Name Dropper First Post Photogenic
    Options
    I'm not an expert, but I **think**:

    A purchase made by the additional cardholder may not necessarily get s75 protection, as the debtor-creditor-supplier relationship may be considered broken.

    But I might be wrong though...
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    :smiley:
  • Socajam
    Socajam Posts: 1,238 Forumite
    First Post Name Dropper First Anniversary
    Options
    I am going to shout at you here : DO NOT ADD ANYONE TO YOUR CARD EVER.

    Yes, everyone is different, I add someone who I trusted 100% and thought was a true friend who promised to repay and not destroy my credit.
    Guess what they ran up the card to the tune of 4095 pounds and I am still waiting for payment. This is coming up to one year now.
    Yes, I was foolish to do so, but I remembered when I was in serious financial problems and someone helped me, but I never mistreated their generosity.
    Now I don't care who the person is I do not want to know and I will not put anyone on my credit card or lend them any money.
  • jonesMUFCforever
    jonesMUFCforever Posts: 28,898 Forumite
    Name Dropper First Post First Anniversary
    Options
    I agree - lend them the money upfront but don't add them to your card.
    I believe that some banks will only let you add someone who lives at your address.
  • Terry_Towelling
    Options
    You have already identified the obvious pitfalls and other posters have related their bad experiences of adding a cardholder. Only you know whether it is safe to trust the person you intend to add but it isn't always a matter of trusting them with your line of credit. Sometimes it is more a case of where are they going and how security conscious are they?

    They could be duped or careless with the security of the card and PIN. That might not leave you out of pocket if fraud occurs but it would leave you with a potential headache having to sort it all out. How careful are they? Are they a bit scatty and likely to lose the card and not notice for days? How savvy are they about shielding PIN entry and identifying dodgy establishments with dodgy staff etc?

    The S75 issue alluded to by Willing2Learn is something to consider if they are likely to be making purchases that might benefit from such cover. I think most on the forum would agree that additional cardholder purchases are generally not covered by S75 CCA but there is some debate over cover if the additional cardholder is buying something at the express request of the main cardholder and where the main cardholder will be a beneficiary of that purchase. As the card is going to be used for travelling expenses it is less likely that S75 cover will be needed.

    For my own experience, I had my wife as an additional cardholder on an account we used for joint expenditure for 30 years plus - no problem. Sadly, she now has dementia and has no concept of credit cards or shopping or pretty much anything at all any more.
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards