Home Finance Having a joint credit card account a good idea

Having a joint credit card account a good idea

by IdleMinutes

Having a joint credit card account a good idea


In July 2019, approximately Rs.59 crore was transacted using credit cards through POS terminals across India. While this data reflects the very fact that India is slowly becoming more credit savvy, the reality remains that debit cards still dominate the payment card market in India.


Consequently, to encourage more individuals to use for a mastercard , financial institutions and mastercard providers are offering numerous features and benefits. as an example , one can apply for a joint mastercard account with another applicant to share the expenses and earn lucrative benefits, like accelerated RBL mastercard reward points.


Nevertheless, opening a joint mastercard account is a crucial financial decision. Accordingly, one should undergo the pros and cons listed below to assess whether having a joint mastercard account may be a good idea or not.


Pros of Joint mastercard account includes the following:


Improve credit profile –

An applicant with a poor or no credit history can improve an equivalent by applying for a joint mastercard with another applicant who features a good credit history. they ought to therefore skills to use a mastercard wisely to create up a favourable credit profile which can enable them to avail credit easily within the future.


Reduces repayment burden

In a joint mastercard account, both applicants are equally liable for paying off the outstanding balance at the top of every month. Since both cardholders are liable for paying the bill, it’ll reduce the repayment strain for both. Accordingly, because the repayment burden is a smaller amount , they’re going to be ready to pay their bills on time and avoid accruing massive debts.


More favourable terms and conditions

Applying jointly for a mastercard is more likely to enable a private with low credit score to qualify for better terms, like low-interest rates and nominal fees.


Avail more reward points

Both parties can use their joint mastercard to conduct transactions, which suggests the spending amount becomes doubled. As a result, they will also earn more reward points compared to a mastercard owned by one individual. These reward points are often exchanged to earn cashbacks and discounts on purchases at merchant stores.


Credit cards like Bajaj Finserv RBL Bank SuperCard also offer RBL mastercard reward points as welcome bonuses and on reaching certain spending milestones. Furthermore, financial institutions and NBFCs like Bajaj Finserv also provide pre-approved offers to existing customers which helps in speeding up the appliance procedure. Such offers are often availed on other financial products too, like business loans, personal loans etc. Applicants can check their pre-approved offers by entering some essential information like their name and get in touch with details.


Now, let’s discuss the cons of joint mastercard accounts.


Late payment will impact the credit score of both

Both the Individuals who have jointly applied for a web mastercard together will carry the responsibility of repaying the due amount. Consequently, late payment or defaults will negatively impact the credit score of both account holders.


Can cause complications

Jointly applying for a mastercard also can create complications between the 2 applicants. as an example , one applicant may plan to increase the credit limit, whereas the opposite might not want to.


Before they apply online for a mastercard jointly, applicants should also skills to settle on the proper mastercard for themself. to the present end, they have to assess their spending needs first. For instance; applicants should decide whether or not they want to use the cardboard to get high-end items or everyday things like grocery, fuel etc.


Applicants also got to compare interest rates and other associated fees offered by mastercard companies. they ought to also check benefits like RBL mastercard rewards offered by financial institutions. Furthermore, both individuals should calculate their repayment capability before applying for a joint mastercard account.

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