Why You Should Avoid a Joint Credit Card When Possible

Avoid a Joint Credit Card when possible! 

Your local bank may tell you to get a Joint Credit card because you have a Joint savings account for simplicity.  You need to avoid this at all costs for several reasons!

  • Joint Credit means more Risk!  Why would you take on the risk of another persons credit like your spouse or Kid if you don’t have too?
  • Joint Credit card can mean less future credit.  When you Co Sign for an auto loan or credit card for your spouse or child it serves as a liability for you even if you don’t pay or manage it!  While sometimes it serves necessary to help family out, try and find a better solution.. Like sourcing a Mortgage Broker or Finance Broker.  Just because one bank declined your family members application does not mean they do not qualify!  Banks and Credit Unions have many different policies.   For example:  TD bank does not lend to 19 year adults with no credit established yet.  BUT:  BMO will approve a new auto loan application with no credit as long as the new adult has a guaranteed $1500 salary monthly.  WOH! Now you know.
  • Individual Credit means Future Potential Credit.  Just because you are home maker and do not make money does not mean you should be declined for credit!  Go get 2 credit cards and MANAGE them and keep your credit established.  The last thing you want is a close family member passing away and you have no credit established to lean on. 

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