Filing Bankruptcy As Authorized User

• As the name implies, being an authorized user of a credit card means the owner of the card authorizes you to make charges on the card. However, as an authorized user you share no legal responsibility for the repayment of the debt, which lies solely with the card owner. If you were a joint account owner, you would be liable for the debt, but as an authorized user you are not. As a result, no matter how much debt you put on your father's credit card as an authorized user, you do not need to ever file bankruptcy. Even if you don't make any payments on the card, the issuer of the card can only legally pursue your father for repayment. If you do file for bankruptcy, you cannot discharge the debt on your father's card because you do not legally owe it.
  
  

Becoming Authorized User After Bankruptcy

• If you have a good credit history, or even an average one, it is usually fairly easy to become an authorized user on your father's credit card. However, if you file bankruptcy, it may be difficult to become an authorized user, just as it will be difficult to get a new credit card on your own merit. If you can manage to become an authorized user, it may help you both learn how to handle credit responsibly and improve your credit history.
  
  

Credit Card Company Policies

• While some creditors will still allow you authorized user status, others may not, particularly if you defaulted on a debt you owe them. This is true even though as an authorized user you share no legal liability for any charges. Since part of a creditor's process in extending credit is to minimize risk, some companies may avoid letting you become an authorized user to protect themselves from your prior history of overspending. Even though your father may be an acceptable credit risk to the company, there is a risk that you overspend to the point that even your father cannot pay.
  
  

Effect on Credit Rating

• If your father's creditor reports your status as an authorized user to the credit reporting agencies, it may help your credit score recover faster after your bankruptcy. Known as "piggybacking," this process allows you to benefit from your father's good credit by sharing the credit line and history of your father's card. If you try to "piggyback" on a stranger's credit card, your credit will not noticeably improve, but on your father's card you should see some benefits.