Here’s what you need to know about joint credit card accounts before you enroll:
1.You’re both on the hook. Contractual obligations are contractual obligations – both parties named on a credit card account are liable for charges made on the account. One person cannot opt out of paying a balance created by another person. Thus, only open a joint account with someone you know to be responsible with their personal finances.
2.It affects everyone’s credit. A credit report contains information on all accounts you have as an individual, and those that you share with other people. A misstep by one person on a joint credit card account will affect both people.
3.Authorized users may be the better alternative. Authorized users can use a credit card but are not liable for making payments. This may be better for people who want to get a credit card but may not want to be liable for the other person’s spending habits.
4.Joint accounts can have higher limits. Because there are two people on a joint credit card, a joint card usually has a higher spending limit than a credit card for an individual. Two incomes and two credit scores makes it possible for a joint account to be issued with a higher-than-average credit line.
5.Rewards build faster with a joint credit card. Not only is it easier for two people to get a credit card than it is for one person, it is also easier for two people to build up rewards points faster for smoother redemption. A couple that shares a credit card will likely hit the payout minimum twice as fast as a couple that has individual credit cards.