Do Joint Credit Cards Help Build Good Credit?
If you are trying to build up good credit, getting a joint credit card with a family member (who has good credit) could be the answer to doing so more quickly. The reason is that if two people share a joint credit card account, then the card’s history becomes included on the two sets of credit reports. If your parents or spouse have better credit then you, they can share the benefit of having been approved for credit cards by themselves.
Doing so will also allow you to get a better interest rate than you could on your own without good credit. For many people with little or poor credit, being made a joint user is the only sure way to get a good credit card with that coveted lower interest rate.
This arrangement only works if the credit card is properly managed, with you keeping a low balance and making timely payments.
Know that both you and the joint account holder share legal responsibility for the monthly payments. If you fall behind on the payments, the issuer can pursue both of you to recover payment. You could both suffer from legal action or lawsuits and have wage garnishments should the payments become seriously delinquent.
If you are both responsible, then the joint credit card strategy is a good idea for building up good credit.
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