Families tend to share a lot, and in many cases this includes bank accounts and mortgages. This often means joint accounts, but can your family also have a joint credit card?
Although joint accounts exist, they aren’t common. If you find a joint credit card you like, make sure you know how it works before you sign up.
What Is a Joint Credit Card?
When you open a credit card, you’re authorized to charge purchases to it. You’re also responsible for paying those charges – with interest if you carry a balance month to month.
A joint credit card works the same way, except two people share the ability to make purchases and pay them off. It doesn’t matter who spends what – if you charge $100 to a joint card, both cardholders are liable for the bill.
That means both of your credit scores are also on the hook for card use. If one person misses a payment or maxes out the credit limit, for example, both account holders will see their scores take a hit. On the other hand, if you make all the payments on time, both of you can build a positive credit history.
For these reasons, it’s a good idea to weigh the pros and cons of a joint credit card before committing. A joint account can be convenient, but it can also lead to problems. It’s up to both cardholders to decide how to manage spending and payments.
Pros of a Joint Credit Card Account
- Simplify your finances. A joint credit card can help two people more easily manage their finances together. A joint account can be ideal for married couples or parents and their children.
- Help someone access credit. If one person doesn’t have the good credit needed for a low interest rate or high credit limit, he or she can leverage the other person’s credit for better card terms.
- Improve your credit. By making on-time payments and keeping credit utilization low, both account holders will benefit and see their scores improve.
Cons of a Joint Account
- One person could harm the other’s credit. If one cardholder mismanages the card by racking up a high balance, late bills or skipped payments, the other cardholder will also suffer the consequences.
- Credit card debt could strain your relationship. If account holders don’t agree how to use the card, disputes can arise over paying the bill or overspending. Plus, if you decide that you no longer need or want the joint account, splitting up the debt can be complicated, especially if the reason is divorce.
- Card choices are limited. There aren’t many joint credit cards available, which might mean you can’t choose a card with the best rewards or perks. You’ll need to decide whether the convenience of a joint account is more of a priority than the flexibility to choose a card with the best features.
Which Credit Card Issuers Offer Joint Accounts?
Joint bank accounts, joint mortgages and other shared financial products are easy to find, so you might assume the same about joint credit cards. But that’s not the case.
“Some credit card issuers offer joint accounts, but the industry as a whole has been gradually moving away from them,” says Chad Rixse, director of financial planning and wealth advisor at Forefront, a financial advice firm. “More commonly, credit card issuers offer the ability to add authorized users to a credit account, which gives that user their own card and access to the credit line. But the primary account holder bears sole responsibility for any charges incurred.”
Issuers with joint credit card accounts include:
- Apple. The family account option for Apple Card allows two co-owners to manage the account together. Anyone age 13 and older can be added to the family plan as a participant, which provides access to the credit line. However, only the co-owners are responsible for payments.
- PNC Bank. The PNC Bank credit card agreement states that you and the other account holder are jointly and individually responsible for all amounts due.
- U.S. Bank. Only one joint account holder can be added to a card, and then he or she can’t be removed. College credit cards are not eligible for joint accounts.
Joint Credit Card vs. Authorized User
Joint credit cards work similarly to authorized users, so it’s easy to confuse the two. However, there are some important differences.
Credit card issuers often allow their customers to add authorized users to their accounts. “The most important difference between a joint account holder and an authorized user of a credit card is who is responsible for paying the credit card bill,” says Kate Hao, a financial analyst, certified public accountant and founder and CEO of Happy Mango, a financial services company. “Joint account holders are equally and jointly liable for making the payments, while an authorized user is not. In other words, the authorized user is simply ‘authorized’ for using the credit card in making purchases.”
The authorized user can’t request a credit limit increase or make any other changes to the account, either. But the primary account holder can add or remove authorized users as desired. Only the primary cardholder’s credit is considered when applying for the account.
Hao notes one thing that is the same between a joint account holder and an authorized user – the impact on credit. Usually, all card activity is reported to the three major credit bureaus for authorized users, allowing them to build credit even if they don’t use the card. Of course, that also means their credit can be harmed if the primary account holder misuses the card.
Joint Credit Card Alternatives
If you aren’t sure whether a joint credit card is the right option for you, certain alternatives may better meet your needs:
- Add an authorized user. If you want to allow another person to make purchases with your card but don’t want to permit full control of the account, you can add him or her as an authorized user. The authorized user has access to the line of credit but is not responsible for paying the balance. The user’s credit also benefits from timely payments and low utilization, even if the person doesn’t use that card.
- Apply with a co-signer. If you need help getting approved for the credit card you want, perhaps consider a co-signer account. Like a joint account, a co-signer account will weigh the co-signer’s credit on the application. Co-signers are then equally responsible for credit card debts. Most issuers don’t allow co-signers.
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Consider employee cards. These cards are intended for employers who want to allocate a portion of their credit line to employees. Business credit accounts that offer employee cards may come with purchase limits, giving you more control over how the card is used.
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