Some parents mistakenly believe, adding a child with a disability as a co-signer on a credit card is a harmless act.
While it does make purchasing items easier, it comes with the risk of reducing or eliminating government benefits. To qualify for means-tested benefits like SSI and Medicaid, the individual must have less than 2,000 dollars of financial assets in their name.
However, credit cards are considered by the government to be financial resources. It is the credit limit, not the account balance, of the credit card that is used to calculate an individual’s financial resources. If having a card for making transactions is important, use a debit card and maintain a small balance in the bank account. Or, you can open a credit card with limit well below $2,000.
If you have questions about credit cards and a special needs child’s benefits, contact Oak Wealth Advisors today. Phone: 847-945-8888. Talk to Oak Wealth Advisors about your options and learn more about this and other Special Needs recommendations and resources.