The months of lockdown and confinement were a tough test for many couples, but if yours managed to overcome the obstacles and you are planning to get married, choosing the best way to manage your credit is important. What are the best credit card strategies for married couples?
It takes some time for couples to learn how to manage their finances jointly, but not taking the time to talk about money, however, can lead to stressful situations regarding finances down the road.
Several studies have actually found that money is a top cause of stress in relationships, especially in times of so much uncertainty and struggle as have been the last months so if you are getting married, here are some great tips to handle credit cards, that can help align your financial hopes and dreams.
To start with, it is important to know that, even though a lot of things change when you get married, credit card issuers don’t care what your marital status is. If you apply for a credit card, they will look at your individual credit history.
Managing your finances separately?
A lot of couples decide to keep their finances separate. If this is your situation, a smart move is for each of you to have your own credit card and pay the balance with the funds you each have in your account. This way, you will each enjoy the benefits of having a credit card while building a credit record. However, it may be a good idea to make the other spouse an authorized user of at least one of the credit cards you hold, for certain personal purchases.
Managing your finances together?
Some couples consider that managing their finances as a whole helps them achieve their goals more efficiently. For example, if you are paying a high-interest credit card debt, you can transfer the balance to another credit card with less interest, regardless of which spouse is the primary cardholder.
If a couple does not have an outstanding credit card debt, they can maximize the rewards they earn from their cards. Couples that handle their finances jointly can use different strategies to earn more points. For example, both spouses can apply for the same reward card when it offers excellent sign-up bonuses.
To keep track of your credit card spending, the best strategy is to have just one person managing the accounts.