As the name suggests, a joint credit card is shared by two individuals, and they are equally responsible for utilising and making repayment for the same. They can use it as a standard credit card, and its transaction and payment history will be included in the credit report of both the applicants. Also, both users are equally responsible for the dues on that particular card, irrespective of who has made those transactions.
Typically, joint credit cards are availed by individuals who cannot meet the required eligibility criteria of a single-user one. Also, customers can avail these credit cards with their family members, or spouse as per conveniences.
While applying for a credit card online, individuals must research what are the benefits and how to use credit card efficiently.
Advantages of a joint credit card
Share the expenses and costs
One of the most significant advantages of a joint credit card is that it allows users to share their credit card expenses. Instead of bearing the whole expenses alone, they can divide it among both the cardholders, and reduce their burdens.
Every credit card has some charges associated with it, and a joint credit card allows users to divide it between them. Hence, no one has to bear these costs alone.
Better credit limit
When applying for a credit card online like this, users can avail a higher credit limit compared to a single-user card. Since there are two individuals associated with this card, the liability quotient for issuers decreases, and they can offer a greater credit limit.
More reward points
Joint credit cards include the expenses of two users; thus, the total amount spent here is also higher compared to a single-user one. As a result, the reward points and additional benefits earned here are also greater.
Improve credit score
In case one applicant has a bad credit score, then adding him/her as a co-applicant on a credit card can help improve his/her credit report and CIBIL score. Individuals with a low credit score or thin credit history may find it difficult to avail a credit card of their own. However, with this option, they can use it efficiently to improve their credit score.
Drawbacks of a joint credit card
Probably the biggest drawback of this particular payment card is to know how to use a credit card that individuals share with someone else. In case one applicant is reckless and spends without any thoughts, both of them will be liable to repay the amount or face damage to their credit score.
Additionally, since both of them are legally responsible for repayment, it will incur a hefty debt on the other person, if one of them fails to repay his/her part.
Is it a good idea to have a joint credit card?
It varies according to the requirements of an applicant. In case an individual is struggling with the eligibility criteria when applying for a credit card online, they can opt for this option.
On the other hand, if someone has no credit history, or poor score, a joint credit card is a viable option for them to rebuild their credit report.
Therefore, based on their requirements, and current financial situation, users can choose whether it is a good option for them or not.
What are the alternatives?
The obvious alternative is not to share a credit card with someone else. However, if an individual is looking for similar benefits of a joint credit card in a single user one, they can choose to apply for a Bajaj credit card online. The Bajaj SuperCard offers features like 50-day interest-free ATM withdrawal, accelerated reward points, emergency loans and many more.
Furthermore, the company also provides pre-approved offers on its credit cards as well as personal loans, business loans, and several other financial products. This offer streamlines the application process and saves time. It is also available on other financial products like business loans, personal loans, etc. Applicants can check their pre-approved offers by submitting their essential contact details.
Whether a joint credit card is good or not, it solely depends on the user. If they have any particular requirements, they can easily apply for a credit card online. However, at the same time, read the terms and conditions associated with them carefully before applying for a credit card.