Sep 10, 2024

Credit cards

Should I Add My Partner to My Capital One VentureOne Card? Pros and Cons Explained

Emily Luk

CPA, CFA - CEO and Cofounder of Plenty

For most couples, the endless back-and-forth of splitting expenses through Splitwise, spreadsheets, and Venmo can be tiresome. Graduating to sharing a credit card often feels like a breath of fresh air and reduces the monthly workload.


In this blog post, we'll explore:

  • The pros and cons of adding your partner to your credit card

  • How Capital One VentureOne’s authorized user card works

  • Why you might not see shared spending

  • How credit scores work

  • A reminder of Capital One VentureOne benefits

  • What happens if both partners have an Capital One VentureOne card

  • Referral benefits for your partner

  • Deciding between Capital One VentureOne or Capital One Venture


Source: Capital One website as of July 2024


Options for Adding Your Partner to Your Capital One VentureOne Card


For Capital One VentureOne cardholders, you can add your partner (or a family member) as an authorized user for free!


Pros and Cons of Adding Your Partner to Your Credit Card

Pros:

  • Focus on One Type of Rewards Points: This makes it easier and faster to reach point bonuses or the required points to redeem for flights or hotel rewards.


  • Share Credit Card Benefits: Regardless of whether you’re using the primary card or the authorized user card, you receive the same benefits.

Cons:

  • Limited Spending Visibility for Additional Cardholders: Capital One makes it difficult for additional cardholders to see shared spending. Plenty solves this by enabling easy connection and shared visibility.


  • Indirect Credit History Building: Your partner’s credit history may not build as directly, as the account will be reported to their credit as an authorized user account. While this won’t necessarily effect your credit score, lenders can see this information if they pull your credit report.


  • Primary Cardholder Responsibility: You are responsible for paying off the card, impacting your credit score even if the additional cardholder doesn't pay you back.


How Capital One VentureOne’s Authorized User Works


When you add your partner as an authorized user, you can log into your account online and add them for free. The new card is under your account, and your partner receives a Capital One VentureOne card with their name on it.

Benefits:

  • Faster Points Accumulation: Capital One points are highly valuable due to their redemption and conversion programs with hotels and airlines. With the Capital One VentureOne card, you get 5x points on hotels and rental cars booked through Capital One Travel. All other purchases earn 1.25x points.


  • Credit History Improvement: The primary cardholder's credit history could benefit the additional cardholder, since the authorized user will “inherit” the account history of the primary cardholder. This means that authorized users will see the account appear on their credit report with the same opening date and reported balance information as the primary cardholder.


Why Can I Not See Our Spending?


Capital One has a limited experience for shared visibility. The authorized user setup was designed in a dated era where the primary income earner managed the credit card.


When you add your partner as an authorized user, they cannot see the shared spending. They get their own login and will only see the spending on their issued card, while you can see spending across both cards.


Solution: Plenty offers a solution by connecting your Capital One account and labeling it as “shared,” providing both partners with equal visibility over shared spending.


How Do Credit Scores Work?


When you add your partner as an authorized user on your Capital One account, this is how both of your credit scores will be affected:

  • Primary Cardholder Responsibility: As the primary cardholder, your responsibility doesn’t change much. You are responsible for paying off the card (for purchases made through the primary card and any authorized user cards).  Any missed payments will impact your credit history more than your partner’s.


  • Credit History Building: Adding your partner can help build their credit history if the primary cardholder maintains good credit habits, since Capital One reports card activity to the credit reports of authorized users. However, if the primary cardholder stops paying, that will be reflected on the authorized user’s credit report.


Tip: Your partner should maintain some cards independently to ensure their credit score stays healthy, especially if they have cards with long, good credit histories.


What If We Both Have a Capital One VentureOne Card?


If both partners have an Capital One VentureOne card, you’re probably best off keeping both cards, and adding your partner as an authorized user if you want to consolidate your spending onto one account.  This is because the VentureOne card has no annual fee, so there are no costs associated with keeping the card open.


Advice: Instead of canceling the Capital One card, just hold onto it and use it every few months to maintain the credit age on that card.


Remind Me, What Are the Capital One VentureOne Benefits Again?

  • $0% Intro APR: 0% APR for 15 months on both purchases and balance transfers


  • Unlimited Rewards: Earn unlimited 1.25 miles per dollar on every purchase and unlimited 5 miles per dollar on hotels and rental cars booked through Capital One Travel 


  • Captial One Travel: Save an average of 15% on flights using price prediction from Capital One Travel.


  • Capital One Dining: Access exclusive reservations at the hottest restaurants and tickets to unforgettable culinary experiences.


  • 50% off Handcrafted Beverages: Save 50% off all handcrafted beverages at any Capital One Cafe, Nationwide.


What If I Refer My Partner?


Referring your partner means they’ll receive a separate hard inquiry on their credit report when they apply. Hard inquiries negatively effect your credit report. However, the effect is typically minimal, especially for those with more robust credit history. Capital One VentureOne currently offers a promotion where your partner can earn 20k points, and you’d earn between 10k and 20k points for referring them. This makes sense if you want to double up on Capital One VentureOne bonuses.


How to Decide Between Capital One VentureOne or Capital One Venture?


For every couple, the decision depends on different factors. Key questions to consider:

  • Sign Up Bonus: If you can justify the annual fee, the $95 Capital One Venture comes with a 75k point sign up bonus compared to the Capital One VentureOne’s 20k point sign up bonus.


  • Everyday Rewards: Depending on how much you spend on your card, you may be able to justify the $95 annual fee through the fact that the Capital One Venture earns 2x points on everything, instead of the 1.25x offered by the VentureOne.


Interested in trying Plenty out? Start your 1 month free trial today or book an onboarding call to learn more.




Sources


Stawski, Benji, and Elizabeth Gravier. Capital One VentureOne Credit Card Image. CNBC Select, 2 Aug. 2024, www.cnbc.com/select/capital-one-venture-rewards-credit-card-review.

"VentureOne Rewards from Capital One." Capital One, www.capitalone.com/credit-cards/ventureone.

Au, Stephen. “The Capital One Refer a Friend Program [Earn 100,000+ Points Every Year].” Upgraded Points, 1 Jan. 2024, www.upgradedpoints.com/credit-cards/capital-one-refer-a-friend-program.

"Travel and Miles Rewards Credit Cards." Capital One, www.capitalone.com/credit-cards/travel-and-miles

Tsosie, Claire. “Which Credit Cards Help Authorized Users Build Credit.” Nerdwallet, 25 Aug. 2023, www.nerdwallet.com/article/credit-cards/credit-card-authorized-users-build-credit

Kelton, Katie. “Authorized users: Everything you need to know.” Bankrate, 16 May 2024, www.bankrate.com/credit-cards/news/guide-to-authorized-users




About Plenty


Plenty is an investment platform designed specifically for couples to build wealth, together. We go beyond budgeting, making it simple to invest, save and grow towards your future goals by unlocking access to the financial strategies of the wealthy. Ready to get started? Sign up for your 1 month free trial today.


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The information provided herein is for general informational purposes only and should not be considered individualized recommendations or personalized investment advice. The type of strategies mentioned may not be suitable for everyone. Each investor should evaluate an investment strategy based on their unique circumstances before making any investment decisions.


Investing involves risk, including risk of loss. Past performance may not be indicative of future results. Asset allocation, diversification, and rebalancing do not ensure a profit or protect against loss in declining markets. Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.


Tax-loss harvesting involves certain risks, including, among others, the risk that the new investment could have higher costs than the original investment and could introduce portfolio tracking error into your accounts. There may also be unintended tax implications. We recommend that you consult a tax professional before taking action.


Plenty does not provide legal or tax advice. Where specific advice is necessary or appropriate, individuals should contact their own professional tax and investment advisors or other professionals (CPA, Financial Planner, Investment Manager) to help answer questions about specific situations or needs prior to taking any action based upon this information.


All expressions of opinion are subject to change without notice in reaction to shifting market, economic, and geo-political conditions

AUTHOR

Emily Luk

CPA, CFA - CEO and Cofounder of Plenty

Emily is the ceo and cofounder of Plenty. Started by a husband and wife team, Plenty is a wealth platform built for modern couples to invest and plan towards their future, together. Previously, she was VP of Strategy and Operations at Even (acquired by Walmart/One) and a founding team member of Stripe's Growth and Finance & Strategy teams. She began her career as a VC, and was one of the youngest nationally to complete her CPA, CA and CFA designations.

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