Credit cards offer convenience and flexibility needed in today's fast-paced lifestyle. Adding a nanny's name to a credit account will give her the ability to charge expenses without you having to provide cash for the expenses. Those expenses can be accounted for and paid off on one single bill at the end of each month.
Adding a User to Your Credit Card Account
Adding a user to an existing credit card account is a simple task. Call the customer service department associated with your credit card company. The phone number is printed on the back of the credit card and is a toll-free number. The representative will ask you a few questions and tell you if the new user is approved. The nanny likely will be approved since the account has already been established.
Possible situations that would prevent the credit card company from approving the nanny include poor credit, credit default situations, legal problems dealing with money or poor credit standing on your part. If your account is not in good standing, there is little chance that the nanny will be approved. If there are no problems and the nanny is approved, the nanny's credit card will come in the mail in a few days.
Opening a New Credit Account
You may also open a fresh credit account and add your nanny's name to the account application as an authorized user at the time of the application. If you are approved for a new account, your nanny will automatically be approved, as well. Both your new credit card and your nanny's new credit card will come in the mail either at the same time or within a few days of each other. When the cards on the account have been activated, they can be used anywhere that the card is accepted. Keep in mind that certain credit card types (especially American Express and Discover) are not accepted everywhere.
To Avoid Potential Problems
There is a difference between a joint account user and an authorized account user. A joint account user is just as responsible for the unpaid balance on the credit card account as the primary account holder. An authorized account user is not responsible for the balance at all. If the account balance goes unpaid for a while and the account goes into default, the credit scores of all persons on the credit card account will be badly affected.
Because you are the primary account holder, you can take a few steps to control how the nanny's credit card is used. You can place lower credit limits on that card that are different from the spending limits on the primary card. You can also place transaction spending limits on the account, as well. This will limit the transaction amount on the card to $75 per transaction, for example. You can also place a daily transaction limit on the card.
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