Joint credit cards are usually issued in the name of two individuals who observe the responsibility for the card’s liability, and the same is approved depending on both of their merged finances. Individuals holding such a card with their spouse, family member, etc. are equally responsible for the dues payable. They can make use of it like a standard credit card, and the related payment and transaction history is recorded in both the applicants’ credit reports.
While assessing the repayment ability of a user, financial institutions get strict with their credit card approvals in case the eligibility is not found at par with the requirements. Therefore, joint cards can be an acceptable option for such individuals for easy access to credit. Plus, this type of card also offers several advantages and conveniences. Take a look.
Joint credit card benefits and conveniences
- Purchases made easy
As said earlier, a joint credit card allows individuals to make purchases conveniently with an increased capacity to spend, which is one of its significant advantages. Instead of taking the responsibility alone, you can thus divide the expenses with your co-applicant and lessen the burden.
- Share costs
Every credit card comes with a joining and annual fee, and with joint credit cards, you no longer need to be bear these charges alone. It is one of the more common joint credit card benefits at the offer.
- Higher credit limit
If you maintain your account appropriately, i.e., pay the bills within the due date, a joint account can add a boost to your credit limit. It is hugely beneficial for users who seek higher limits on their credit cards.
- Increased savings via reward points
These accounts involve the expenditures of two individuals. As a result, the total amount spent is significantly higher in comparison to a single cardholder. Therefore, you can remain assured to earn more reward points and enjoy additional benefits as well while increasing your savings from the card transactions.
If you are looking for cards with such lucrative reward programs, you can opt for the likes of Bajaj Finserv RBL Bank SuperCard. Some variants of the card also offer up to 20,000 points as welcome gifts. Besides, the card also comes with features like up to 50 days of interest-free withdrawals from ATMs, emergency loans, etc.
Further, the company issuing the card also provides pre-approved offers that streamline the entire application process. These offers are also available on other financial products, like business loans and personal loans. Proceed to check your pre-approved offer by entering some essential contact details.
- Helps improve the credit score
There are possibilities that one user may hold a low credit score. Under such circumstances, you must know how to use a credit card wisely to result in an improved credit score.
Some disadvantages or drawbacks of joint credit cards
Along with the benefits, a joint credit card comes with few drawbacks as well. Always keep in mind to consider the following pointers:
- Firstly, if any of the account holders rack up a considerable amount of charges or do not make timely payments, it can impact both of their credit scores. Note that both the users are equally liable for paying off the debts, irrespective of who owes the charges.
- Secondly, if one user wishes to close his/her joint account, he/she is not permitted to. Both the holders’ consent is required for the closure of the account.
- Lastly, card disputes can have an effect on the relationship between the two account holders. For instance, disagreements on expenses or making payments can give rise to unnecessary strain.
Usually, individuals who fail to meet the eligibility requirements of a single-user credit card opt for joint cards. However, one must always make sure to be aware of both the co-applicants’ spending habits and how to repay the credit card dues in time. This way, they can make the most out of their joint credit card benefits.