Authorized users of credit cards can reap some of the fallout of the cardholder's financial troubles. Fortunately, there are ways to protect your credit, even if your spouse files for bankruptcy.
Authorized User
An authorized user of a credit card is allowed to use the card, but is not responsible for paying the charges. Being an authorized user is different than being a joint account holder, who is equally responsible for any debts incurred.
Credit Reporting
If the primary cardholder doesn't make the minimum payments due on the account, or files for bankruptcy, this information may end up on the authorized user's credit report. This can seriously damage the authorized user's credit score.
Prevention/Solution
Contact the credit card companies and ask to have your name removed from your spouse's accounts as an authorized user. You can also ask the credit bureaus to remove any derogatory information related to the account from your credit report.
Community Property States
In a community property state, spouses share responsibility for marital debts and assets. Spouses of account holders may be held responsible for a credit card debt, even if the spouse was just an authorized user of the card.
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