It’s only natural for couples to share the same credit card. And in many cases it makes sense to share a credit card with a close relative or friend.
However, there are some risks to consider before making the decision to have a joint credit card.
Having a joint account may seem like it’s not a good decision after all.
When sharing a joint account, both members share the same credit score. But if there’s an authorized user on the card, only the primary card holder’s credit score is affected.
On the plus side…
Rewards for spending, credits, or cashback accumulated between your expenditures and that of your significant other are going to be pooled together on one account.
Sharing a credit card may also reduce the amount spent on annual fees, should your credit card company charge them. Other fees may also be less of a hassle.
If the account is shared and both members are responsible, this will help build credit for each person involved. If you are the primary card holder, it will help build your credit even if the other one is using the card most often.
Another big plus is that, when both parties have good credit, the spending limit is most likely to be higher than it would be as a sole card holder.
On the other hand…
It’s impossible to predict if a relationship will last. When things get ugly, good people start doing bad things. This happens when one party starts racking up bills and making late payments. Your credit score will also suffer.
Having multiple card holders means that you can check spending habits. But this can be bad for people who are penny pushers or are extremely stingy.
If the person you share an account with has bad credit, the limit you are offered by a credit card company will be lower. When working as a team, your credit combined with someone else’s poor credit can cause tension.
In the end, the decision is a tough one. Building credit together and handling finances as a team may be a good thing. But for those that don’t have the same concept of responsibility, it’s smart to just fly solo when it comes to credit cards.
I’m not married, but I’ve always preferred to keep expenses separate. This has helped prevent confusion over how much is whose, and clashes over financial management styles.
My husband and I both have separate checking accounts, but do share a joint savings account that we put money into whenever possible. I’m more conservative with my finances; I like to know where every nickel and dime is being spent so that everything is account for. My husband is the complete opposite. If I left him to manage my money, I’d be stressed 24/7.
Hi Stephen,
That’s really great financial management style, Keep it up!
Regards,
Shelly
Hi J,
That’s nice that you are being assertive in a certain way, especially on money matters.
Regards,
Shelly
I never been one to do a joint credit card or have an authorized user. I have been in a few relationships in my day where I just knew we wouldn’t last. I never would do a joint credit line unless I’m married. I just don’t see it being a good idea when anything can happen.
Hi Genna,
Wise move! Often times its bad experiences that teach the best lessons! Its good that you never went down that road! Its terrible when you find yourself having to pay back another persons debts, especially if that person is an Ex!
Thanks for dropping by!
Regards,
Shelly
I have a joint account with my wife who I am okay doing with. A friend of mine wanted me to do a joint account with him, but I declined because I don’t like sharing something such as this with a personal friend. My wife is good enough. But I’m afraid if I do a joint checking account with him, I can be held responsible if he doesn’t pay, or starts writing NSF checks again (thats why his bank closed his account). Am I right? Would I have become responsible for his spending habits? I feel bad for saying no. But there’s always a risk he wont pay and I can’t be having that.
Hi Donald,
You made the right decision. Your friends account was closed by the bank because of his spending habits. When you open a joint account, you both share the responsibility. If your friend writes a NSF check you are both responsible for it. Don’t feel guilty about it. If your friend applies for a checking account with a company like Second Chance checking, he will get approved and start proving to the banks that he can handle a checking account.
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