Joint Credit Card Account Tips

In a joint credit card account, both people are responsible for making the payments.  If you plan to open a joint account with your spouse, child or friend as a partner, consider these tips to avoid the risks and problems:

joint credit card holdersSet a spending limit for both of you.

It’s important that both of you understand the limit when it comes to spending. Experts recommend not using more than 30% of the credit line to maintain a good score. You may adopt this rule and agree not to use more than 30% of the available credit limit. This is also a good way to avoid uncontrolled spending and debt build-up.

Inform your joint account partner about your spending.

Although it’s not necessarily to tell your joint account partner every single item you charge to the account, it is recommended that you let the other person know if you want to use the credit card for a large purchase. This way, there will be no surprises between you two and the other person will be aware in case he/she wants to use the card for another transaction.

Check the account before using the credit card.

To make sure that you do not go over the agreed limit, be sure to check your account before using it for payment. Most issuers allow online account access so you should be able to check your balance from home or wherever you are as long as you are connected to the internet.

Talk about payment responsibilities.

Communication is vital to a successful joint account relationship. Many couples have a joint checking account in which they put money into it to pay joint bills.  When you are using your joint credit card try to think about the other person / people on the account.  If you are on a joint account with a friend, it will take a lot more organizational skills.  If you go on a vacation using that card, its not fair to stick your friend with the bill and vice a versa.

Make it a point to go over your statement monthly and look for errors.  Don’t just assume your friend / partner made the purchase.  Have a set date that payment needs to be made on and if you want to pay the card to a $0 balance or if you are going to leave a balance on the card.  And if you leave a balance who pays the interest.  If you are paying all your charges off at the end of the month and your partner isn’t, Do you want to be responsible for their interest charges?

Remember that as joint account holders, both of your accountable to pay the charges, whether you made that particular charge or. Make sure that you are VERY clear on how payments will be made.  For example, will you mail it or will you make the payment online?

Be aware of the possible consequences.

If you use your credit card frequently, keep in mind that the amount of credit usage will effect both of your credit scores.  Since your credit history is not the only thing at stake, each one must seriously consider the possible consequences should they fail to submit payment on time or should they exceed the account’s limit.

Furthermore, in the event that you decide to close the account, both of you will still be liable to pay the debts regardless of who used the credit card or who made the charges. In case the joint account person refuses to cooperate with paying the charges, the other one must take over the repayment to protect his/her personal credit standing.

Having someone as a joint account partner is a serious decision. Unless you know and trust the other person, sharing an account is not recommended. If you want to open a joint account to help the other person build credit or rebuild bad credit, you should be well aware of the risks. It’s very important to discuss matters with your account partner before signing up the application.

Elizabeth Roberts

Elizabeth Roberts

Liz Roberts and her team are continuously providing information to people who are ready to repair their credit and improve their credit score. Also NewHorizon.org team strives to empower the homebased and small business owners by bringing information that can help them to manage and grow their businesses. Let our 24+ years of business finance experience help you to get the financing you need! CONTACT US if need financing for your business.

2 Comments
  1. Great site you have here. This is an honest tip. It’s hard to find high-quality writing like yours these days. I truly appreciate people like you! Take care!! Thanks

  2. Thank you Peace O!

    Really appreciate for leaving comments like this. This inspire us more in helping people with their finances.

    🙂
    Melanie

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NewHorizon.org is an independent, advertising supported website. The owner of the site may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website. NewHorizon.org has not reviewed all available credit card offers in the marketplace.

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