Joint Credit Cards: Advantages and Disadvantages

There are advantages and disadvantages of joint credit cards. First, having a joint credit card means the two people involved can make charges to the credit card and the card’s history is included on both party’s credit reports.

The two people involved, are also responsible for the credit card payments. If the card payments become delinquent, the credit card issuer can go after either cardholder for payment.Joint Credit Cards

If you are about to make the decision of getting a joint credit card either with a partner, spouse, or child, knowing the advantages and disadvantages inherent in it will guide you in making a decision.

Advantages of Joint Credit Cards

Help your partner get a better credit

If you are adding a spouse or family member with bad credit to your credit card, it can help them get better credit. If the person you wish to have a joint credit card with has bad credit, it may pose a problem for them while applying for a credit card on their own. Having a joint credit card only works if the credit card is managed right (i.e.) if the bill is paid on time and the balance is kept low.

Help one person get a credit card/good interest rate

With a joint credit card, you can help your partner get a credit card/good interest rate where they otherwise wouldn’t. This might be the only way to get your spouse a credit card or to get a low-interest rate, especially if one spouse has a bad credit score.

Shared bill

If the person you are co-joining with is your spouse, and you have one rent, one electricity bill, one cell phone bill, it is normal to share a credit card bill. Since you have one bill to pay, it goes to say that, it can actually allow you to make the most of your income. Also when it’s time to pay off your debt, you’ll have an easier time deciding which card to pay back first.

SEE ALSO:  How to Get a Credit Card After Chapter 7 Bankruptcy

Disadvantages Of Having a Joint Credit Card

Breakups or divorce make it difficult to manage joint credit card

This is true in the case where the ex-spouse isn’t paying his or her share of the credit card bills. Your credit card will be affected because no matter what the divorce decree says, the credit card issuer will hold you to the original credit card agreement.

Both of you are legally responsible for making the payments

What this implies is that the card issuer can take legal action against you for charges you might not have made to the credit card. You may even be sued and have your wages hit if the credit card payment becomes delinquent.

One person could use the credit card to hurt the other

After a breakup, one cardholder can decide to get back at the other by indulging in a spending spree, which leaves the other cardholder with the bill.

Final Thought

At the end of the day, it is your choice to make. You can either keep a separate credit card and manage your account as you deem fit. But if you want to go for a joint credit card, make sure you evaluate your reasons for sharing a credit card. Discuss the advantages and disadvantages of having a joint credit card, and ensure that you and the person you wish to share the credit card with understanding the effect a breakup may on your credit history.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.