Having a partner or family member with their own credit card linked to the main account, will mean that all the benefits of having the card are shared. Anything that is purchased using either of the two credit cards will be pooled on to one statement. Then when the monthly bill arrives, it can be split evenly. If the account is owned by a married couple, or if it is owned by family members, then they could either pay for their own items or a portion of the overall balance.
If there is a family member who has not got the best credit rating, by adding them as a second card holder to your account, it can help them in building up their credit score. This will involve keeping the balance on the card low and paying the balance in time, which is imperative. Using the joint credit card correctly will act as a positive influence on both card holders’ credit profiles.
Another option for adding a second card holder to an account would be setting them up as an authorised user. The second card holder will be able to use the credit card as usual, but they would not have any record on their credit report, and they would not be responsible for the bill each month.
Despite the benefits to having a partner or family member as a card holder, there are a number of areas that could cause problems. With this in mind there are a few of things to consider first before setting up the second card.
Deciding how the bill is going to be paid is important, as it sets the basis for the responsibility of the balance each month. It would also be worth agreeing to advise each other of made purchases, and before using the card confirm the balance is not too high. With two people using the same credit account it would be easy to reach the limit of the card, if a careful check was not kept on the account balance. Another element of co-using a credit card account is setting a limit for the balance to reach before its use is stopped. Setting an upper level of balance will keep the account at a manageable level.
No matter who it is in the family that will be sharing the credit card account with, it is important to set rules on the card’s use and establish the payment responsibilities.
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