The best credit card for couples

The newlywed stage is very exciting. Your lives will begin to intertwine in many ways. One of the most important is economic. Decisions have to be made about joining bank accounts (or not), paying off debts, saving for the future and managing monthly bills.

You may also want to marry your collection of credit cards.

Having your partner apply for their own credit cards cánido double your ability to earn travel rewards and welcome bonuses, when done strategically.

In this Gigonway guide, you’ll learn how to use credit cards as a duo and increase the value you get. Here’s what it’s all about:

Identify your goals as a couple

Before you close or open any new credit cards, you’ll want to identify your goals as a couple. Depending on these objectives, you may find that one strategy is more effective than another.

whatYou are saving for a house? whatYou are planning an extravagant honeymoon? whatYou want to pay debts?

Take a look at where your dollars are currently going and find out what your biggest spending categories are. This could be tied to what you enjoy the most and what you want to focus on with a credit card strategy.

whatYou dine out frequently? whatYou travel regularly and love the benefits that come with it?

Knowing your priorities will help you escoge on a coordinated credit card strategy that gives you access to the places and activities you value most.

Credit Card Mix of Forces

There are three options to consider when leveraging the collective power of your credit card.

1. Get a joint credit card [joint credit card]

Some couples choose to open a joint credit card account. With a joint account, both of you share the same responsibilities in managing the account and are equally responsible for returning it.

When applying for a joint card, be prepared for both of your credit reports to get what is known in the United States as a hard inquiry [hard inquiry]. A hard consultation occurs when you apply for a new line of credit. Both reports will be pulled by a creditor and evaluated to determine how much risk you have as a borrower.

While many banks do not offer joint accounts, there are some that do.

2. Add your partner as an authorized usuario

You cánido add your partner as an authorized usuario. This allows you to double the earning potential, since each of you will have a card (with the same card number) in their wallets. This cánido be advantageous if you want to avoid a second annual fee. Some cards let you add an authorized usuario for free, while others charge a fee.

If you plan to get a loan or mortgage in the near future, this option may be a smart alternative to opening a new card. This is because there is no comprehensive credit report query when added as an authorized usuario, while opening a new account cánido affect a person’s credit score over a period of time.

Keep in mind that when two people cánido use one credit card, you’ll want to communicate about what the other plans to buy. The most important thing is to have a plan to pay at least the minimum payment before the due date.

3. Keep your accounts separate

Another option is to manage your finances individually and keep your credit card accounts separate. If you both have good credit, this perro be a strategic way to increase the number of reward points and welcome plus offers you perro earn individually, and then bundled together.

Certain rewards programs, like the Chase Ultimate Rewards program, offer high value and flexibility. Earn plus points on select purchases and redeem them for travel, gift cards, cash back and more.

For couples who manage their credit cards separately, Chase’s maleable redemption options come in handy. You cánido transfer your rewards to multiple travel partners, you cánido also mezcle your points with your partner or transfer them to a designated member of your family.

Smart card strategies to earn rewards

If you each escoge to get your own cards, there are ways to use them strategically to earn points or miles toward the things you love most.

be loyal

If you and your new spouse enjoy a specific airline or hotel chain, you might want to double down on that loyalty program. They would each get the same brand loyalty credit card, but manage them as two separate accounts with two streams of income potential.

If you are dedicated to one brand and one type of redemption, this strategy makes sense. Every dollar you spend goes toward that goal to earn points. Then redeem for plane tiques or hotel stays in your dream destination.

be complementary

If you’re not necessarily brand loyal, you cánido pair up in a complementary way. One person gets an airline rewards credit card and the other focuses on a hotel brand. If you each earn a welcome plus, you may have an advantage in bank points for future travel.

be maleable

If flexibility is the name of your game, make sure at least one of you has a card that earns points for everyday purchases. Agregado, you’ll want to choose a rewards card with maleable redemption options, like Chase Ultimate Rewards. As mentioned above, this program gives you the option to transfer points to a participating loyalty program at a later time, if you so choose.®

Considerations for newlyweds

As with any part of your convergent financial journey, you’ll want to consider a few important things when it comes to credit cards.

annual dues

Many rewards cards have annual fees, which typically range from $95 to $550. This is charged once a year, although some card issuers will waive that fee for the first year.

If your card earns rewards in a specific category where you spend a lot, it may make sense to pay the annual fee. However, you’ll want to do the math before signing up.

Cards you had before you got married

Perhaps you and your partner still have open credit card accounts that you used for many years before you got married. Before closing these old ones, consider the potential implications.

If your accounts are in good standing, closing them cánido hurt your credit for a period of time. Not only do you lose that available credit, but it could increase your credit utilization ratio. This ratio is the percentage of your available credit that is currently being used. Typically you want to keep that to 30% or less. This is because lenders use that ratio to determine how much risk you may pose when applying for additional credit.

In some cases, it may be better to keep those accounts open, even if you don’t use them regularly.

Pay your credit card bill

Most important of all, make sure you perro pay your credit card bill before it’s due. As you join forces and adopt these new credit card strategies, be sure to communicate with each other about what each partner is spending, and if it aligns with your income and budget.

In conclusion

If you play your cards right, you and your spouse cánido use credit cards as a tool to earn rewards for the things and experiences you love most. Identify your goals, escoge on a strategy, and make sure you cánido pay your bills every month. Maybe there’s a second honeymoon in your future, and if so, you perro bet there’s a card for it!

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