Joint credit cards: Definition, benefits and alternatives

Joint ownership is common for all kinds of financial products, whether it’s a checking account, savings account, mortgage or auto loan. But what about joint credit cards?

What exactly is a joint credit card anyway? And how is having a joint credit card different from having a co-signer or an authorized user? Read on for all the ins and outs of joint credit cards, plus learn about some helpful alternatives.

Key takeaways

• A joint credit card is just like a traditional card, except that the account is shared by two people.

• Joint credit cards can have several benefits, including simplified money management and credit-building opportunities for both cardholders. 

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

• Not all banks or credit card issuers offer joint credit cards, but you may be able to add an authorized user or co-signer instead.

A joint credit card can simplify the sharing of some finances by allowing two people—such as spouses, partners or family members—to access a line of credit together.

The key difference between joint credit and traditional credit is that the benefits and responsibilities of the credit account and any debt incurred are shared equally by both cardholders. With a joint credit card, any activity on the card will affect both cardholders. And both cardholders are responsible for paying the balance on the card—even when one cardholder didn’t use the card at all.

A joint credit card works just like a traditional credit card, except the account is shared by two people, with both individuals considered a primary cardholder. Each cardholder gets their own card that’s linked to the account, and both are responsible for paying off the balance. 

All purchases made on the joint credit card by each individual will show up on the same account statement. And it’s up to the cardholders to determine who will be making the payments on time each month.

Like any other financial product, joint credit cards have their pros and cons. Consider the following before making a decision:

Some potential advantages of joint credit cards include:

• Streamlined account management: A joint credit card can be convenient if you share your finances with a spouse, partner or loved one. Both you and the other cardholder can manage balances, make payments and share other responsibilities associated with your credit card account.

• Shared opportunity to build credit: Opening a joint credit card account can give you and your joint account holder the chance to build your credit with responsible use. Habits like making payments on time and keeping your credit card balance low can help both cardholders establish a positive payment history.

• Potential to grow healthy credit habits: Having a joint credit card isn’t only convenient for managing finances, but it can also help open up conversations about healthy credit habits and how the card will be used. If you’re going to share an account, it may be a good idea to have an initial discussion to set guidelines for spending, establish a budget and ensure each party understands their responsibility for paying off the balance.

Some possible disadvantages of joint credit cards could include: 

• Potential negative impact on credit: If one cardholder maxes out the card, makes a late payment or misses a payment altogether, it could affect both cardholders’ credit scores.

• Difficulty reverting to a non-joint account: In most cases, a cardholder can’t be removed from a joint credit card account. So if a cardholder decides they no longer want or need to have a joint credit card—for whatever reason—they may only be able to pay off the balance and close the account or transfer the balance to a traditional credit card with a single or primary cardholder.

• Liability for joint cardholder’s debt: Both cardholders are responsible for paying off credit card balances, no matter which cardholder incurred the debt. So if one cardholder splurges on a big purchase they can’t afford, the other may be on the hook for paying it off.

Not sure whether a joint credit card account is right for you? Here are a few alternatives to explore before applying for a joint credit card:

Adding an authorized user to an existing credit card account gives another person access to that account. The authorized user typically gets their own card and can make purchases using the account’s line of credit. But unlike a joint credit card, an authorized user isn’t responsible for the account. Authorized users also can’t make changes to the account, like increasing the credit limit or adding more authorized users.

One benefit of becoming an authorized user is that it provides the opportunity for the user to build their own credit history. And it can be a great way for an authorized user to learn how to manage a credit card and establish smart spending habits. Plus, an authorized user can be added and removed from the account with relative ease, unlike a joint cardholder.

Keep in mind that the primary cardholder is ultimately the one responsible for the account. Further, negative information like late or missed payments could affect both the primary cardholder and the authorized user.

Another alternative to a joint credit card is having a co-signer. Instead of becoming a cardholder on the account, a co-signer vouches for someone who’s applying for a credit card. The co-signer is telling the credit card company that if the cardholder can’t pay, the co-signer will.

Like adding an authorized user, co-signing for a credit card is one way to help a loved one improve their chances of being approved. A co-signer could also help the applicant get more favorable terms than they might get on their own. 

But keep in mind that the co-signer’s credit scores could be impacted if the cardholder falls behind on payments. And taking on debt obligations as a co-signer can affect the co-signer’s ability to secure additional loans or credit of their own.

Some credit card issuers offer joint credit cards or co-signers, but those options are becoming less common. Capital One, for example, doesn’t offer joint credit cards or co-signers on credit cards. So if you’re interested in sharing a Capital One credit card account, consider adding an authorized user to a credit card you already have.

Adding an authorized user to your Capital One account can help you earn more rewards and keep track of spending, all on one account, at no additional cost. To add an authorized user, all you’ll need is their name and date of birth. 

You will also have the option to choose their level of access. Your authorized user may be eligible to create a digital profile, which allows them to manage their account online. Once they’re added, they’ll be sent a card to start using right away. And, unlike a joint credit card, you can easily remove an authorized user from your Capital One account yourself.

Still want to learn more about joint credit cards? Check out the answers to these frequently asked questions for more information:

A joint credit card can be a useful tool for making money management simpler or helping a loved one build credit. But other options, like co-signing on a credit card or adding an authorized user to an existing account, may be available as well.

Like any credit card, it’s critical to use yours responsibly—whether you’re a co-signer, looking for a joint credit card or adding an authorized user to an existing account. But if you’re ready to apply for a credit card you can share with an authorized user—and potentially earn cash back or miles on your purchases—compare Capital One credit cards or see if you’re pre-approved today.