Adding a co-applicant to the credit card account is a common practice. There are two ways in which you can share a credit card- as authorized user and joint user.
You can maintain a credit card as authorized user if you are sure that other applicant is minor (below 21 years of age) and cannot bear the liability of sharing the outstanding bills. Other than this it is better to maintain a credit card as joint user.
There are various benefits of maintaining credit cards and joint applicants. Here are some of the aspects you can consider before taking a credit card jointly from any financial institution.
Tracking Monthly Expenses
Maintaining separate credit cards make it difficult to track the expenses. If you consolidate your expenses under a single card then it will be easy to calculate the budget and expenses.
Gaining Rewards and Points within a Short Period of Time
Every credit card company offers attractive offers, discounts and gift vouchers upon completion of a certain level of expenditure. So if you are spending from a single card then you can earn these points and rewards quickly. This also helps to reduce the expenses.
Joint Sharing of the Bill Payments
Joint account holders are at a better advantage than that of the authorized applicant. If the Co applicant is below the age of 21 years of age you have to apply as an authorized user, which will ensure that there is no liability of the outstanding bills on the children. However, if you are applying as a joint user then the burden and liabilities of the bill can be shared.
Improving Credit Scores
This is beneficial for the family with bad credit. In case you have a bad credit record in the past you can improve the scores by applying for a joint credit card with some member of the family having a good credit score.
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