Giving credit to a friend is dangerous

Posted by Mary Clare McGraw

Q. In 2007, my wife was trying to do a favor for a friend who was down on her luck financially. I strongly advised her against it, but she signed up for a credit card with a second user being this woman. My wife told Chase that she wanted a strict cap on the credit limit of this card set at $1,000. Chase ignored this request and the limit went up to $16,000. The woman made charges up to this amount. My question is: Is my wife liable since she strictly requested that the card be limited to $1,000?

ANONYMOUS

A. Your wife has a big heart, but you were right to advise against this act of generosity. Giving away credit is far more dangerous than giving away cash.

At stake is her credit rating and ability to get the most favorable terms, not to mention being put in this awkward situation of having a bill in her name for the charges of someone else.

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