Thing Hard Before You Apply For A Credit Card With Another Person
When you apply for a credit card with another person you take your relationship to a whole new level. Joint credit cards often a variety of pros, but really more cons. Some of those vary, also, depending on whether you have good credit or poor credit. Should you sign up for debt, arm in arm with someone you love? Let’s dive in and see.
Understanding the Romance of a Joint Credit Card
First, let’s get it out of the way and say that you can “share” an account with another person by making them an authorized user on your account. So, if you have a gasoline card and you want your child to be able to fill up the family car whenever they want you can get a gas card from your account printed in their name with them as an authorized user. They won’t have the ability to manage your account, they won’t have any financial responsibility and your card will not appear on their credit report. It will be all yours, they just get to use it.
On the other hand, you can also get a “joint” credit card. This is when you apply for a credit card as a joint applicant with another person. You both give your social security number, you both agree to all the terms, and you are both given cards as well as financial responsibility for the account. You do not have to be related to get a joint card with someone; any two people can apply for a joint credit card.
Apply for a Credit Card with Another Person: The Benefits
When you apply for a credit card with another person this joint credit card offers a variety of benefits, some more tangible than others.
- Emotional benefits. A joint card can make you feel connected to another person, like there is a new level of togetherness and trust. It can also make you feel safer, like you have another person to share the burden with.
- Sharing expenses. Joint credit cards can let you and another person share expenses, for example if you take a vacation together or use the card for grocery shopping and eating out together.
- Building credit. If you have a joint card and you are using it well, maintaining a low limit, you can both grow your credit using the same account. Of course, if one of you messes up the account it will ruin your credit just the same.
The Drawbacks of Joint Cards
- When you apply for a credit card with another you can be left holding the bag. With a joint card you and your partner are both responsible to pay. But if they flake out on you then you will be left to either pay the debt on your own or watch your credit score go up in smoke.
- Divorce doesn’t fix it. Even a divorce judge cannot force a credit card company to separate debt on joint cards. So these can muddy the waters of a divorce further than normal. You may even be left splitting benefits with your airline mile credit card.
- Death hurts. Losing a partner is terrible in every way, and adding financial issues just makes it worse. When you have a joint card and the other person dies you will be left with that debt. Joint bank accounts and mortgages might be okay, but separate credit cards are probably best.
If you decide on a joint credit card ensure that the person you sign up with knows how to use a credit card wisely – in fact, suggest that they start reading right here LINK TO START OF THIS GUIDE.
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