Joint Credit CardCommon credit card
Learn more about the advantages and disadvantages of including a second card owner in your credit card balance. First thing you need to know about common credit card is that they do not technologically exists in the UK. Indeed, a common credit card is only a credit card in the name of one owner, but additional credit lines are spent so that other credit card holders can use the credit possibilities of the bankroll.
That means that, unlike joint banking, several accountholders are not collectively responsible for the debts. For example, in some jurisdictions, such as the USA, you can request a joint credit card so that it is really split with any joint accountholder, such as a joint checking or checking customer number.
However, this is not possible in the UK - what is sometimes called a " joint " credit card actually means only the addition of additional card holders to the same bankroll. You may sometimes be able to include an additional card holder during the claim procedure, but otherwise you will need to ask your card issuer to do so.
In the case of credit card holders with a personality, the provider may require the holder to be a husband, wife, associate or closely related person and to reside at the same adress. Since the credit card will remain your sole authority and the individual does not enter into a credit contract, there is no need to evaluate the individual.
Your additional card has a different spin than your own. The addition of an additional card holder can be useful if you want to give someone else the opportunity to spent money on your bankroll, e.g. if you are paying for the week's purchases, but someone else is actually doing it for you. The credit card bill is sent to you and you can cover the other person's expenses.
Companies may find this option particularly useful as it allows peers to have one card each for a particular credit area. Charges could be more appropriate, however, as there is usually no credit exposure overrun. When you use a cash back credit card or a reward card, the addition of an additional card holder means that you can increase your reward by benefiting from both their expenses and your own.
When someone has trouble getting his own credit card because of a bad credit history, he can have a card on your credit instead and it has no effect on any of your credit stories - as long as they don't press you over your credit line, of course.
One of the greatest dangers with a common credit card is that you give someone else the license to incur debts on your behalf, but they will not be responsible for it. Keep in mind that the credit line applies to the entire bankroll, not to every single member, so you need to talk to each other to make sure you haven't accidentally exceeded the line by one of them.
Joining someone else to your credit card is not easy to take - it basically means that they can incur debts on your behalf and influence your creditworthiness. For this reason, it is very trustworthy to give someone a credit card for your bankroll. Another problem with the addition of an additional card holder is that the consumer credit law does not provide an applicable level of security under § 75.
In this case, from Financial Ombudsman?, it shows how Section 75 can be rescued via the principal cardholder's credit balance, rather than by a problem with the purchase of an extra card holder for one's own use. It is a good suggestion to clarify with your card holder which expenses are permitted or not.
So if you don't have the feeling that you can rely on them to keep to their limits, but their credit histories are wobbly, they might try to advertise themselves for a card that was developed for those with poor credit, a pre-paid card or a loyalty card so they can better plan ahead.
When you have added an extra card holder and things are not planned, immediately ask your card issuer to stop the extra card in order to avoid further expenses. Your credit card conditions may, however, dictate that you must give the extra card back to it by cutting it in half - which could be tricky if your relation has become healthier.
Your card issuer may still be able to take measures to restrict your expenses for the card but please be advised that under these conditions you may still be held accountable for some or all of the cardholder's expenses. Therefore, you should only add card holders to your bankroll if you can be confident that they are acting responsibly and trustworthily.