The Top Factors to Consider When Deciding Whether to Co-sign a Loan or Credit Card

Rockville, MD (PRWEB) April 24, 2014

This time of year, when young couples and graduates are embarking on new beginnings, joint credit becomes a financial hot topic for many people. What many dont realize is that there are different types of joint credit. Understanding the various benefits and risks of each is essential to making sure joint credit is advantageous for all involved.

Since management of joint credit will affect both parties credit scores, it is critical to know who and what you are agreeing to, advises OpenSky especially before signing or authorizing any applications.

Whether you are a co-borrower, co-signer, or adding an authorized user to an existing account, you need to be aware of your responsibilities, says OpenSky President Nick Bryan. You want to make sure you are protecting your good credit.

Co-borrowers, as full partners on a joint account, have filled out or at least signed a credit application and are 100% responsible for the bill. Co-signers agree to be responsible for the entire bill, although it is in someone elses name; though they may or may not have access to account information. If the borrower defaults, pays late, or misses a payment, the co-signers credit history can be affected.

Adding an authorized user is a common solution for many parents who want to help their children start using credit, Bryan says, adding that it is not beneficial for cardholders seeking to build credit; they would do better to open a secured card of their own.

Joint credit can play an important role in building credit, Bryan says, as long as everyone is clear on what the rules and the risks are. To find out more about OpenSky, visit

About OpenSky:

OpenSky is a business line of Capital Bank, N.A., a full-service commercial bank in the Washington, D.C. metropolitan area. A top-ranked bank based on performance, it is the only bank in Maryland and Washington, D.C. to make the American Bankers Association Journal (ABA Journal) list of top 100 performing community banks in the class of over $ 100 Million in Assets. With nearly $ 500 million in assets, Capital Bank offers a full range of banking services including cash management, commercial lending services, residential mortgage and consumer credit. For more information about the Bank, visit Member FDIC. An Equal Housing Lender.

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