A joint credit card account is an account where two main account holders have the similar status. That means both joint account holders have access to the line of credit, and major credit card facilities like balance transferring, disputing charges, raise a service request for lost or stolen card, making a request for # credit limit increase or even closing the account. Joint account holders can redeem rewards points and get the benefits equally.
In addition, joint credit card account holders have similar duty to pay off any outstanding bills charged to their cards. In a joint credit card account, both the account holders can take any decision related to the account, and the account’s transaction history is added on both the account holder’s credit reports. Both account holders are liable for making the payments and in the case of any delinquency, both the users will be liable for penalty charges.
Joint account holder vs. authorized user
A joint account holder is totally different from an authorized user on an account. An authorized user will receive a credit card in his name and he can use it only. He isn’t bound to pay any bill charged to that card. Also, his credit score will not be affected by any means (as per the FICO 08 scoring). This scoring is used by the credit reporting agencies in 2008.
On the other hand, the joint account holders don’t have that facility. They’re equally responsible for paying off all the bills charged to that particular credit card account.
Advantages of a joint credit card
1. Bill sharing - If both account holders want to share 1 rent bill, 1 electricity bill, 1 phone bill etc, they can pay those bills through that joint credit card. Having one credit card bill is easy, and it can be shared easily. When you’re going to pay off your debts, you'll have an easy option while selecting the card to pay back first.
2. Helping to build good credit - If one of your family members, let’s just say your spouse has bad credit score and because of that she can’t get a credit card, you can help her by adding her as a joint cardholder. By this way, you can actually help her to build a better credit. But, it’ll only work if you and your spouse can manage the credit card wisely and perfectly. Pay the bills on time, pay before time, and pay extra.
3. Helping your partner to get a low-interest credit card - If your partner is lacking of any qualifying factors while getting a low-interest credit card, having a joint credit card is the only way. If you’ve got good credit and become eligible for a low-interest card, you can get the account with your spouse jointly. Being added as a joint user may also increase the value of his/her credit score.
Canceling procedure of a joint credit card
As long as there are no outstanding balance on the joint credit card account, any one of the joint account holders can cancel the card. If there are any outstanding balances, credit card issuers will normally restrict the canceling process due to the contract with them. Account holders need to pay the balance in full before making any changes in the account. After the account is paid off, either of the account holders can close the account.
Before signing the documents
Before signing a joint credit card account, you must understand the pros and cons of this credit card account. It’s wise to have separate credit card accounts to avoid critical credit problems. Be sure to read the terms of service and conditions (credit card fine prints) of the credit card issuer carefully. Directly call the credit card company if you’ve any specific queries regarding joint credit card account.