What is a joint account?
The benefits of a joint account include:
- They enable account holders to obtain account benefits that are difficult for single account holders, such as access to credit facilities
- It makes it easier for couples to focus resources on mortgage, debt, rent, or bill payments
On the other hand, disadvantages include:
- Unrestricted use of funds by each party may affect all other parties, especially if one party such as a spouse has difficulty controlling their spending habits
- All parties are responsible for costs and expenses
- The government may withhold funds to meet outstanding orders, such as child support or bank taxes
Who is an authorized user?
Similarities Between Joint Accounts and Authorized Users
- Both users have personal credit cards
- Both can change accounts
The difference between a joint account and an authorized user
- Account obligations