Pros And Cons Of Joint Credit Cards For Couples

These days, many people opt for a joint credit card account. While there are several advantages of having joint credit cards, they also come with a share of disadvantages. Having a joint credit card does help in enhancing the credit score of a person who has a not-so-favorable one. However, as one is not well-aware about the spending habits of the other, it can lead to a credit card debt for both, making the non-spender liable for payment.

Hence, unless you are absolutely sure about the spending habits of your spouse or girlfriend, do not take a hasty decision of getting a joint credit card. There are certain pros and cons of joint credit cards for couples, which you should know before opting for one. This article will tell you what a married or dating couple should know about joint credit cards. Consider that you and your spouse own two credit cards each.

Imagine how tedious it would be to check the statements, compare the slips and look for discrepancies, remember the due dates, and make timely payments for multiple cards. Also, having multiple cards can lead to excessive expenditure which may go unaccounted for, till the bill arrives. Hence, having a joint credit card is a good option.

You have to manage a single card. This can help you save your time, effort, and money. Credit-building is one of the advantages of joint credit cards. Your spouse might not have a good credit history. Once you opt for a joint credit card, it will help her get a better credit.

In fact, if her bad credit history does not allow her to get a credit card, having a joint credit card account will enable her to own one. If you ensure that you pay all your bills on time and keep the credit balance low, you will be able to build credit for yourself, as well as your spouse. This will help your spouse erase her bad credit history. Due to a poor credit standing, your spouse may not be able to avail the benefit of lower rates of interest.

However, when you both own a joint credit card and have a good credit history, it will allow her to benefit from lower interest rates. This will also help you both to qualify for mortgages that offer the best financial terms. A good credit score on a joint account may also help you get a credit card with a higher credit limit.

Two people using a single credit card means that your reward points will increase. The usage of the credit card will increase and with it, there will be a steady hike in the number of reward points, which you will be able to redeem and utilize to your advantage. Many times, there is tension over financial transparency in a couple. This happens because they do not have the same financial goals and like to keep their transactions a secret.

While one may believe in saving money, the other may have spendthrift habits. This can create problems and put the relationship under strain. However, if you have a joint credit card, it accords an openness about the finances and about individual transactions. When you share a credit card with your spouse, it means that you believe in each other's financial decisions. This helps in building trust and in strengthening the relationship. Most of the time, joint credit cards have a higher credit limit as compared to the ones owned by individuals.

However, as both the spouses can easily check the credit card status, they tend to spend responsibly and with the consent of each other. Also, if they do not have the budget to purchase a certain thing, they refrain from buying it and wait till they have gathered enough balance. Not only this, as two people share the responsibility of making the payment, they can actually buy expensive or luxury goods which would otherwise be impossible to procure on an individual credit card.

Many couples share the electricity bill, cell phone bill, rent payment, bank accounts, grocery shop bills, and many other household bills. Hence, it becomes easier to share a credit card to jointly pay all these bills on time. Not only this, but having one bill less helps the couple use their income wisely.

Having just one card ensures that its payment is made on time. Also, it helps manage the bills and finances better. Many times, joint credit cards act as a bone of contention between partners. This happens when one is a reckless credit card user while the other believes in using it wisely.

This change in the attitude towards spending, can cause damage to the relationship. The couple may have arguments, differences of opinion, and even a breakup because of different spending habits and a difference in the approach towards credit card use. Hence, unless you both have decided some credit card usage rules and vouch to follow them, getting a joint credit card can do more harm than good. Just imagine what will happen if you share a joint credit card with your spouse or girlfriend and over time, decide to break up.

If you have divorced on a bitter note then paying the credit card bill will become even more difficult. If your ex-spouse is delinquent, then she will definitely try to spend a lot in order to make you 'pay' for it. Irrespective of what the divorce decree dictates, the credit card issuing company will hold the original credit card account to be true.