When two people get married, they begin to share their finances. There is no escaping the medley of bills, mortgages, loans, and payments that come with living together. It’s all a part of life, and most couples manage it well.
Some husbands and wives share credit cards. Sharing cards, however, is much different from sharing cash and can get tricky if mismanaged. Most banks, such as FAB in UAE, allow couples to share credit cards. You can also open joint accounts in these banks, which are licensed under the name of both spouses.
But should couples share credit cards? To get an answer, we must look at the benefits and harms of sharing a credit card in the UAE.
Pros of Sharing a Credit Card
Here are the pros of sharing a credit card:
· Reduced Credit Card Bill: Some banks charge an annual fee on credit cards. By issuing individual cards, the total fee the couple has to pay doubles. However, if you share a card, you only have to pay this fee once. Another option of getting around this fee is by opting for fee-free cards such as the ones FAB provides. These have no annual fee!
· Transparency: When you and your spouse share a credit card, you’ll both know what the other person is spending on. Any kind of doubts and insecurities about your partner’s spending habits can be washed away.
Cons Of Sharing A Credit Card
While sharing a credit card is beneficial in some respects, it can also be troublesome. Here is a list of the cons of sharing a credit card:
·Legal responsibility: Sharing a credit card sounds great, but there’s a catch. You and your spouse are equally responsible for payments. This means that if your spouse overspends, you are equally liable and have to pay the bank if they don’t. If either spouse is not good at managing their finances, then opt for cards that don’t charge fees for going over the limit, such as FAB credit cards in the UAE.
·Merged Credit Scores: If your partner has poor spending habits and frequently misuses the credit card, not only do they harm their own credit scores, but they harm yours as well. This can make it difficult for you to get your own credit card in the future.
·Divorce: In the case of a divorce, a shared credit card becomes a problem. After a divorce, one of the spouses would have to apply for a new card. Without the salary of both spouses, it’s possible that you won’t be able to meet the minimum salary requirement of the existing card either.
The final decision is up to your partner and you to make. It is best to take these factors into account before committing to sharing a credit card. If you want total transparency and trust your partner, sharing a credit card may be a good idea. It can also make it easier to handle finances. However, before getting a credit card together, make sure you and your spouse discuss a back-up plan as well.