Why Have A Joint Credit Card?
There are many reasons why having a joint credit card account may be a good idea for couples. If a credit card is used to manage monthly shopping and household spending, it may make sense for both people to have access to the same credit card account.
Adding a spouse or another person to a credit card account is usually very straightforward. In fact, people can usually do this when they apply for a new credit card. Even if you want to add another person to an existing credit card account, it is a simple process. Just phone, write to or email your credit card company with details of the person or people you want to add. If they need any more information, they'll ask for it. Wait a few days and a new credit card will arrive in the post.
One of the advantages of sharing a credit card account is that you can make payments for goods and services without arguing about whose account it should go on. A joint credit card can also be used to give a child over 18 access to spending money.
Different From Joint Bank Accounts
Credit card accounts in the UK are not really joint accounts. Joint bank accounts have two signatories and both people are responsible for any debt incurred. With a joint credit card, the principal cardholder is responsible for paying the debt on the account. As far as the lenders are concerned, the person who opened the credit card account is the one they will chase for payment if necessary. It is therefore important for both credit card holders to adopt a responsible attitude to spending via the credit card. This means not exceeding the credit card limit and paying the debt on time.
Additional cardholders can sometimes get statements and receive offers from credit card firms which may affect spending on your card. These include credit card cheques and other offers which allow credit card holders to take additional credit. In all cases, the principal cardholder remains responsible for any debt.
Death And Divorce
It is particularly important to keep this in mind in cases of cases of death or divorce. In the case of divorce, the principal cardholder remains liable for debt incurred even if another cardholder has misused the card. He or she will still have to pay up even if a vengeful spouse has racked up lots of bills and exceeded the credit limit. If the principal cardholder dies, his or her estate is responsible for paying any outstanding credit card debt.
So having one ore more additional cardholders is not a step to take lightly. As with other joint accounts, trust and prudent debt management are key to keeping a good credit rating and a harmonious relationship.
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