If you’re worried you won’t qualify for a good credit card on your own, or if you and your partner are trying to simplify your finances, you may be considering a joint credit card.
While joint credit cards have some benefits, they also come with serious cons that are worth considering before applying for your shared line of credit. Read on to learn all about joint credit cards and what other options you have if a joint credit card isn’t the right choice for you.
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What is a joint credit card?
A joint credit card is a credit card that’s owned equally by two people. Each co-owner gets their own physical credit card, but they use the same credit account (aka the same line of credit). This means both users have the same:
- Borrowing terms (e.g., the same credit card APR)
- Credit limit
- Current balance and available credit
- Debts
- Unpaid balances and late payments
- Interest charges
- Rewards
- Everything else
Both the benefits and the responsibilities of the credit card are shared between the two parties. In other words, there’s no lead or primary card owner who’s more responsible for the debts than the other.
Both users will have access to the same funds and features, and both will be equally liable for paying the bills and not violating the card’s terms.
Who uses joint credit cards?
Joint credit cards are most common among:
- Married couples
- Partners
- Co-parents
- Parents and their children
- Close friends
It’s worth noting that joint credit cards are becoming rarer. In fact, many banks and card issuers prefer not to allow joint account ownership, as it’s easier to hold a single person liable for credit card debt. 1
What are the pros of joint credit cards?
Here are some of the benefits of opening a joint credit card account:
Convenience
One of the main reasons couples and family members seek out joint credit cards is for the convenience of sharing their finances. With a shared account, you have fewer monthly bills to track and a single account to manage instead of two.
Furthermore, you may want to open a joint account for the purpose of paying a shared set of expenses. For example, co-parents might open a joint credit card that they use solely for child-related purchases.
Access to better credit cards
If you or your potential credit card co-owner has less-than-perfect credit, qualifying for a good credit card can be difficult. If your credit isn’t great but your co-owner’s is, you may qualify for more desirable credit card options by piggybacking on their good credit.
The reverse is also true—if you have an excellent credit score, you can help your partner qualify for a credit card with better terms than they’d be able to get on their own.
Credit building
You and your co-owner’s borrowing activities will both be reported to the credit bureaus that create your credit reports (although which bureaus they’re reported to depends on the card issuer). This means you can build credit by using your joint credit card responsibly and paying your bills on time.
However, this pro can easily turn into a con if you or your partner fails to pay off your monthly credit card balance. Even if it’s only their debts that go unpaid, both of your credit scores will suffer.
More rewards
If your joint credit card is a rewards card, you can rack up rewards more quickly by spending more on the card.
Additionally, many rewards cards have special offers for “milestone spending.” For example, if you spend a certain amount of money in the first year of card ownership, you’ll get a set number of bonus credit card points. These thresholds may be easier to reach with two people using the same credit card account.
What are the cons of joint credit cards?
As with most financial tools, there are cons to joint credit cards as well as pros. Here are the downsides you should be aware of:
Shared liability
The biggest potential drawback of a joint credit card is that you’ll be liable for the co-owner’s spending, debts, and violations of the credit card terms.
For example, if your credit card co-owner fails to pay their part of the bill on time, you’ll also be responsible for the late fees (and you’ll potentially also have to pay a penalty APR in the future).
Furthermore, frequent late payments or high spending will negatively affect both your credit scores.
Shared rewards
While earning double rewards is an upside of having a joint credit card, dividing those rewards can be a downside.
Unless you’re willing to thoroughly track all of your purchases and the rewards they reap, you may have to share your points, cash back, or airline miles equally with your card’s co-owner.
Spending disputes
Owning a joint credit card can lead to disputes between partners, family, and friends. For example, if one of you is consistently spending more than the other and leaving little available credit on the card, tensions can easily rise.
Even worse may be the conflicts that come along with having to share a monthly bill and figure out who’s responsible for paying what portion of it.
Difficulty separating from your co-owner
In the event of a separation, divorce, or falling out between yourself and the credit card co-owner, you’ll probably run into issues with your joint credit account.
You can’t remove co-owners from joint credit cards (even voluntarily), so you’ll need to pay off the card’s debt and close the account. This can be easier said than done. Even trying to distribute the remaining debts and rewards between the two of you could prove difficult in the event of a tense separation or estrangement.
How closing a joint credit card can hurt your credit
Not only can dividing a joint credit card be tricky after a separation from the co-owner, but it could hurt your credit score.
When you close the joint account, it will reduce the amount of available credit you have, which will probably increase your debt-to-credit ratio.
You’ll also need to open a new credit card, which will lead to a hard inquiry on your credit report. Hard inquiries show up when credit card issuers check your credit—a process that knocks a few points off your score.
How to apply for a joint credit card
If you’ve considered the pros and cons of joint credit cards and decided you want to move forward, here’s how you can apply for your shared credit account.
- Figure out who has the best credit: First, you and your future card co-owner need to check your credit scores and establish whose is better. You don’t have to pay money to do this—there are several places where you can get your free credit score.
- Research what cards you’re eligible for: Use that score (the higher of the two) to gauge which cards you can qualify for. Bear in mind that both parties’ credit scores will be checked when you apply for the joint card. However, issuers will sometimes use the higher score to determine what’s available to you both (within reason). 2
- Find a bank that offers joint credit cards: Joint credit cards are increasingly difficult to find, as most issuers prefer authorized users to co-owners. However, there are still joint cards out there. For example, Bank of America, U.S. Bank, and PNC Bank all offer joint lines of credit. 3
- Compare cards: Once you’ve found banks and credit card issuers that offer joint accounts, compare the cards that are available to you and your co-owner based on your credit score range. Make sure you thoroughly read the rates, fees, and borrowing terms to ensure the card you choose is the right fit for you and your partner.
- Apply: Once you’ve decided on a card, fill out an application the way you would for any other credit card. Most banks and issuers will let you apply in several ways: online, at the bank, or over the phone. Keep in mind that both you and the co-owner will need to provide your information, both your credit histories will be checked, and both of you will likely get a hard inquiry on your credit report.
What are the alternatives to joint credit cards?
If you’re still debating whether a joint credit card is the right financial decision, consider the alternatives that still allow you to share a line of credit with a partner, friend, or family member.
Become an authorized user
Adding an authorized user to a credit card is more common than joint card ownership, and often a better all-around option.
Here’s how adding an authorized user to a card can be better than co-owning a card:
- Less liability: While the primary cardholder and the authorized user each receive a physical credit card, only the primary cardholder will be responsible for the bills. This makes for easier money management and ensures one party doesn’t slip up and miss a payment, causing both parties’ credit scores to suffer.
- Can add or remove users: Unlike a joint credit card, in which the parties are locked into the card, you can add or remove authorized users from a credit card. This means that you can keep the account open in the event of a separation or falling out and simply remove the authorized user.
- More control: Many credit card issuers allow primary cardholders to set spending limits for authorized users on their credit cards. 1 This makes it easy to ensure your authorized user doesn’t spend over the limit you two agreed on, or over the amount you can feasibly pay off at the end of the month.
- Still builds credit: Like being a credit card co-owner, being an authorized user affects your credit score. If your main goal is to build credit (or to help someone else do so), being an authorized user can also accomplish that. The practice of becoming an authorized user to improve your credit is known as piggybacking credit.
Apply for a card with a co-signer
If you’re looking to co-own a credit card because you have bad credit and want to qualify for a better card, you can consider getting a co-signer instead.
A co-signer accepts partial liability for your credit card borrowing. So, if you fail to pay your bills, your co-signer will be held responsible for them.
Having a co-signer reduces the risk for your lender, so they can help you score better credit cards if you’re struggling to qualify for a good deal.
Of course, being a co-signer comes with risks (both to the co-signer’s finances and credit score, since they’re liable for debts on the card), so this is a big ask. While it’s an option worth considering, being an authorized user is usually a safer choice for both parties.
Look for easy-approval credit cards
If bad credit is motivating your search for a joint credit card, check out credit cards for bad credit and secured credit cards first. You may find you can qualify for more credit cards on your own than you thought.
Should you open a joint credit card?
Whether or not opening a joint credit card account is a good decision for you depends on your circumstances.
Joint credit cards can be useful. However, they come with considerable negatives, so be cautious when deciding if a shared line of credit is your best financial option.
The truth is, how well a joint credit card works depends a lot on the relationship between the card’s co-owners. Unfortunately, relationships are fickle, and tying your finances and credit to another person can be risky.
Before committing to a joint credit card, we recommend exploring other options for sharing lines of credit (specifically through authorized usership), or spending more time searching for credit cards you can qualify for on your own.
