With a joint credit card account, you can share a line of credit, as well as debt repayment responsibility, with another person. Of course, as with anything in life, joint credit card accounts have their pros and cons. There are many things that you need to consider before opening one.
Today, we’re going to explore the pros and cons of opening a joint credit card account so that you can have all of the necessary knowledge and understanding you need before taking the leap.
Pros of Opening a Joint Credit Card Account
Joint accounts can be very advantageous for those who want to share the responsibilities of a credit card. Some of the main advantages include:
Fewer Bills to Keep Track Of
Joint accounts make managing money much easier. Married couples, for example, will often open joint accounts to simplify their finances and pay off shared bills each month. Plus, both joint account users can enjoy the benefits of a single credit card, including cashback and travel rewards.
Joint Accounts Can Improve Credit
If a pair keeps a joint account in good standing, paying off debts on time, then both of the users could benefit from a positive credit history. Joint accounts can be very useful for someone who is looking to build their credit from scratch.
More Access to Favorable Terms
If one of the joint account users has better credit history than the other, the one with lesser credit history can take advantage of the other’s good standing. This could present access to higher credit limits on other credit cards and lower interest rates, which a user may not have had access to before.
Cons of Opening a Joint Credit Card Account
On the other hand, there are a few disadvantages to opening up a joint credit card account, including:
Both Users Will Have Their Credit History Impacted
Even if one of the users misses payments or racks up a ton of charges on the credit card, both of the users will be negatively impacted. It is important to note that both of the joint card account holders share equal responsibility for paying off balances.
Relationship Changes Can Complicate Things
If you experience separation, go through a divorce, or stop doing business with one another, moving forward with the account can be difficult. It’s also possible that one person could purposefully skip payments or spend tons of money to hurt the other person’s credit. Choose your partner wisely.
Final Thoughts – Is A Joint Account Right For You?
To determine if a joint account is right for you, it’s important to have a discussion with your potential joint applicant. Of course, if the joint account doesn’t sit in your favor, there are other ways to build credit, such as authorized user tradelines.
If you have any questions about how tradelines can impact your credit, make sure to get in touch with our teams of specialists here at Boost Credit 101. We look forward to helping you reach the next steps in your financial life.