Summary List Placement
Don’t funnel all spending through a single primary cardholder; instead, take a two-player approach.
Build a shared portfolio of cards and rewards that complements (rather than copies) one another.
Decide in advance how you’re going to share the rewards; don’t wait until it’s time to redeem!
Read Insider’s guide to the best rewards credit cards.
When you start sharing finances with someone else, your approach to credit cards may need adjustment. Here are five strategies that can help you and your partner take advantage of more credit card opportunities while avoiding some common mistakes.
Unite, don’t unify
Among the couples I know who have merged their financial lives, most of them put one person in charge of managing money. That person handles everyday pecuniary tasks like budgeting and paying bills, and serves as the primary user for credit card and bank accounts. This may be practical as a division of labor, but funneling your credit cards through just one primary cardholder surrenders all the potential of having a second.
To maximize credit card rewards and benefits, I recommend partners think of themselves as separate financial entities with mutual goals rather than as one. Specifically, let each of you serve as the primary cardholder on some accounts, and add each other as authorized users when it’s beneficial. This approach merges your finances in a way that promotes synergy rather than just efficiency, and it has numerous advantages.
To start with, adding a second player increases the number of cards, benefits, and rewards available to you. Credit card issuers may limit the number of accounts and the total amount of credit they’ll extend to any individual, but two individuals can have more accounts and more total credit than one. Working as a team effectively raises those limits, which translates to more opportunities collectively.
Tag-teaming credit cards also allows you to double up on the most lucrative rewards. For example, you can both apply when an especially large sign-up bonus appears, or earn points and other rewards (like airline companion tickets) to use on an upcoming trip.
Lastly, when you have more than one potential credit card applicant, you can boost your collective earnings for each application through referral bonuses. These bonuses are generally awarded when the account is approved and come with no spending requirement, so you can claim them with only a few extra clicks. Just make sure the sign-up bonus offered through your referral is comparable to the best one available elsewhere.
If you prefer to put a single person in charge of your shared finances, having more than one card applicant shouldn’t be an obstacle. You can pay bills and resolve many basic questions or concerns even if an account isn’t in your name, or get established as an authorized user for greater access.
Coordinate, don’t duplicate
It might seem natural to get the same credit cards as your partner, figuring a card that’s good for one of you …read more
Source:: Business Insider