Sharing finances is among the trickiest aspects of a partnership. However, joining your funds can benefit both parties. It can also give both you and your partner the perfect credit score.
A joint credit card is a credit card account that two people share. Both people are liable for the account, and both parties’ credit histories can get affected by it too.
So if you’re considering getting a joint credit card, you should know a few things. In this article, you’ll learn how a joint credit card works, how to get one, its pros and cons, and which banks issue a joint credit card.
How Does a Joint Credit Card Work
Joint credit cards allow the use of two separate cardholders. And each of whom gets access to the account and the ability to make transactions.
Also, no matter who made the actual purchases, both parties are liable for the account balance. This means that the duties for a joint credit account are entirely shared by both cardholders and not in half.
As a result, you both will need to apply for a joint credit card, and the issuer will review your credit histories. This is similar to applying for a personal credit card. Your approval depends on your credit score.
So even if your partner’s credit score is good and you have a low credit score, it could ruin the chances of the credit card getting approved. If that is your case, you should hire a cheap credit repair service to help you improve your creditworthiness.
Then when you’re given the green light, all expenses will get recorded on each person’s credit report. A joint credit card can make tracking your expenses simpler. This is because there is one annual charge to pay instead of two.
How to Get Joint Credit Card
The application process for a joint credit card is the same as for a single credit card. But with the exception that two people are applying. One of the most basic requirements is that both candidates are at least 18 years of age.
You can apply online for the credit card. However, remember that certain issuers may ask you to go in person to their branch to get the joint credit card.
Also, the issuer will request to see both applicants’ expenses, income, debt, and assets. These factors are checked to assess whether the applicants are creditworthy. So, it is best to hire a cheap credit repair company for your account before applying to help boost your credit score.
They do so by taking your credit reports from credit bureaus and reviewing and clearing out bad info in them. As a result, your credit score increases. With that done, the chances of getting joint credit cards increases.
Pros and Cons of Joint Credit Card
Check all the pros and cons before concluding if this type of credit card is good for you and your partner. Below are some of them.
Prospect of Saving Costs
One benefit of a joint credit card could be paying one set of fees rather than several. As a result, reducing your overall expenses.
For example, if you and your spouse each have a credit card, you will likely be able to cover phone, electricity, or rent.
Making the most of your income is easier for you when it’s one less bill. You’ll also find it simpler to choose which card to pay off when it comes time to repay your debt.
Improves Credit Scores
When the account is in good status, keeping the debt of the shared credit card low compared to the credit card’s limit will help lessen the credit usage ratio. Note that the credit utilization ratio is a factor that affects your credit score.
Lastly, maintaining an active joint credit card may boost the average age of your credit accounts. As a result, it then improves your credit score.
It Makes it Easier to be Accountable
A joint credit card lets you and your partner access the report since both of you are liable for the bills. As such, it helps you guys to hold each other financially liable.
However, it depends on what you usually purchase with your credit card and if you and your partner are on the same financial page.
Possible Damaging Effects on Credit Scores
Your credit score may suffer if your credit history contains entries such as missed or late credit card payments.
For example, if your partner spends big and you arrive at a point where you are in huge debt, your credit score will take a hit.
Lenders may be less ready to loan you money if your credit score is low. They may also charge you a higher interest rate than they would if your score were higher.
Even though you can raise your credit score with a cheap credit repair service, it is vital to be cautious. Ensure you take your partner’s financial skills into account. Also, ensure to do this before applying for a joint credit card.
One well-known con of joint credit cards is that you don’t have any privacy with what you do with the money in the account.
Even if you choose a shared credit card account with a family member or close friend, it’s the same result. So on that note, it’s vital to use caution when deciding with whom to share an account.
Banks That Issue Joint Credit Cards
This form of credit card is scarce because most issuers prefer customers to have only one credit card in their account. With that said, three major banks are offering shared credit cards today:
Once you’re an active user, you can call the U.S.Bank client service line and tell them you want to add a joint holder to your card.
However, the bank only allows one joint account holder to get added to a card. And once added, the joint account holder can’t get deleted.
The U.S. Bank will send you the joint owner form to add a joint holder. Then you and your partner will fill it out and sign it before sending it back to their email or fax number.
Your partner will get a joint credit card with their name once the request gets approved. But note that once you add a joint holder, you can’t remove it.
Pittsburgh National Corporation (PNC)
PNC permits you to submit joint request forms without adding a joint owner later. However, to complete the joint application, both applicants must call customer service. You and your partner usually need to go to the closest PNC branch you can find and apply.
Some PNC application forms have a section just for the co-applicant. In that form, they must fill out their details such as date of birth and contact info. They also need to write their social security number and email address.
Once everything gets approved, the bank will issue the joint credit card.
Bank of America
One of the only major banks that now issue joint credit cards is the Bank of America. And they have an evident approach for those who wish to share account rights with a partner.
However, this can only get done after one person gets authorized for a Bank of America credit card. After that, they can apply for a co-applicant to share financial duties with them.
Once the application gets accepted, the joint credit card gets issued to the co-applicant. And any debt incurred is the joint responsibility of the cardholders.
If, for any reason, your partner decides to leave, they can. However, the bank demands that both cardholders concur to relieve the person from any duties.
Then, the bank would verify the remaining cardholder’s capacity to pay the credit line by checking their credit.
Joint credit cards are a great way to improve your credit score and make it easier to qualify for loans. However, here are a few things to know about joint credit cards before applying: first, you should know how joint credit cards work.
Then, Secondly, how to get one. Thirdly, you should know the pros and cons of joint credit cards. Finally, you should know which banks issue joint credit cards.
With everything discussed in this article, you are now aware of what there is to know about joint credit cards. So good luck as you apply for one today.