Joint credit cards: Considerations and alternatives

Joint ownership is common for all kinds of financial products, like checking accounts, mortgages and auto loans. In the case of credit cards, a joint account is shared by two people who are equally responsible for the balance.

But joint credit card accounts are increasingly uncommon. 

What you’ll learn:

• With a joint credit card, two people share a line of credit.

• If a joint credit card isn’t used responsibly, it could affect both cardholders’ credit scores. It could also leave one person on the hook for the other’s debt. 

• Fewer credit card issuers offer joint credit cards than in the past. For example, Capital One doesn’t offer them. 

• Rather than opening a joint account, you could explore the benefits of adding an authorized user instead.

A joint credit card account allows two people to access and share ownership of the same line of credit. Because they’re co-owners, both people are responsible for managing and repaying what’s charged to the account.

A joint credit card works much like other credit cards. Both cardholders can manage balances, make payments and share other responsibilities. But if the situation changes, it may not be simple to remove one person from the account. Here are more details:

Credit card issuers often use hard credit checks to determine whether to lend money or extend credit. The difference with a joint account is that qualifying could mean inquiries into the creditworthiness of both potential cardholders.

Both account owners could get their own card and have full access to manage the account. That means both cardholders could make purchases and change account preferences. They could also have full visibility into account details, including what the other cardholder is using their card to buy.

Joint credit card accountability

Joint cardholders are both responsible for the debt no matter who is using the card. And that means issuers can “seek to collect the amount due from either account holder,” according to the Consumer Financial Protection Bureau (CFPB).

There are also potential credit effects. If the account is used responsibly by both cardholders, it could build credit. But that requires doing things like paying statements on time every month. Missing payments could have the opposite effect and hurt both cardholders’ credit scores.

Like joint credit card accounts, adding authorized users is one way for multiple people to access the same line of credit. They’re also two ways to build a positive credit history if responsible activity is reported to credit bureaus.

But there are key differences.

• Authorized user: Because the authorized user isn’t responsible for monthly payments, applications and credit checks are usually not required.

• Joint account: Usually requires a full application and credit inquiry.

• Authorized user: Typically gets their own card and can use it to make purchases. But depending on what the primary account holder allows, authorized users may not have full account access. Primary cardholders can add and remove authorized users with relative ease.

• Joint account: Access and account visibility are shared. Consent from both account holders might be required to remove one.

• Authorized user: As the CFPB puts it, “being an authorized user generally does not obligate you to pay the debt.” 

• Joint account: Debts, account management and more fall to both account owners.

You can add authorized users to your Capital One credit card account without additional applications or credit checks. They’ll get a card with their name on it and share your line of credit.

Eligible authorized users can sign in to the account with their own credentials. There, they can do things like view, download and print their purchases as well as book trips through Capital One Travel.

Check out these frequently asked questions about joint accounts and alternatives.

Joint credit cards are rarer these days. But alternatives such as authorized users might offer a way for two people to access the same credit line.

If you’re new to credit or searching for your next credit card, Capital One can help. 

• See if you’re pre-approved for credit cards without harming your credit scores. 

• If you’re looking to build your credit with responsible use, explore cards for people with fair credit. 

• Earn unlimited 1.5% cash back on every purchase, every day, with a cash back rewards card. 

• Monitor your credit report and score with CreditWise from Capital One. It’s free for everyone, and using it won’t hurt your credit.