Joint Credit Card Account: What Are Its Advantages?
In the past, many couples split their expenses. But nowadays, a number of couples are opting to share one credit card to make budgeting hassle-free. This is because splitting the bill at the end of the month can be easier.
If you’re considering opening a joint credit card account, you have to tread carefully.
What makes a joint credit card advantageous?
There are two options for individuals and couples who want to share their credit card account with another person. One, you can apply for your own card and add an “authorized user”. Two, you can try to see if you can qualify for a joint account. In this case, the credit card company assesses the applicants’ credit history before they make a decision.
If you choose the first option though, you need to keep in mind that authorized users may be allowed to make purchases with the credit card, but they are not in any way financially liable to pay for them. This makes this set up an impractical one.
A joint account, on the other hand, allows both users to improve their credit scores respectively if they pay their bills on time. Keeping your budget in check will also be easier because the bill will itemize all purchases, helping you determine which ones are unnecessary.
With a joint credit card, both parties will also be able manage and take advantage of the features of their account. These include transferring balances, disputing charges, increasing credit card limit, redeeming points, etc. All of which are not available to an authorized user.
Another advantage of a joint credit account over other options is that individuals with low FICO scores can apply for a credit card. This is because banks look at the credit history of both applicants. So, if your spouse or partner has a better credit standing than you do, it can help balance things out and give you more chances of getting approved.