Joint credit cards: Definition, benefits and alternatives

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

What exactly is a joint credit card, and how is having one different from having a co-signer or authorized user? And if a joint credit card isn’t right for your situation, what might be some helpful alternatives?

What you’ll learn:

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

• 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 user’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 sharing finances by allowing two people—spouses, partners or family members—to access a line of credit together.

What separates joint credit from traditional credit is that the benefits and responsibilities of the credit account and any debt incurred are shared equally by both cardholders. 

Activity on the card will also affect both cardholders. And both cardholders are responsible for paying the balance on the card—even if one of the cardholders didn’t use the card.

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

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

If you’re considering a joint account with someone, it may be a good idea to first have a discussion about healthy credit habits. Establishing a budget to ensure each party understands their responsibility might also be helpful.

Like any other financial product, joint credit cards have pros and cons.

Some of the potential advantages of a joint credit card 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 a 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.

There are some possible disadvantages to consider as well: 

• 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. Additionally, both cardholders are responsible for paying off credit card balances, no matter which cardholder incurred the debt. 

• 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.

Not sure whether a joint credit card account is right for you? There are alternatives to explore before making your decision. For example:

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. It can also be a great way for an authorized user to learn how to manage a credit card and establish smart spending habits. Plus, unlike a joint cardholder, an authorized user can be added and removed from the account with relative ease.

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

Many major credit card issuers don’t offer the option, but 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 applying for a credit card. Adding a co-signer to a credit account tells 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 can help a loved one improve their approval chances. A co-signer could also help the applicant get more favorable terms than they might get on their own.

But remember 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 is easy if you know their name and date of birth. With Capital One, you also have control over the level of access your authorized user can have. 

Once added, authorized users receive their own card. Unlike with a joint credit card, you can easily remove an authorized user from your Capital One account.

Still want to learn more about joint credit cards? Then check out the answers to these frequently asked questions.

Joint credit cards could be one way to access credit with another borrower. But alternatives, such as authorized users, offer their own benefits. 

If you’re ready to apply for a credit card that you can share with an authorized user, you can compare credit cards from Capital One.

New to credit or looking for your next credit card?

• Check for pre-approval offers with no risk to your credit score.

• Earn unlimited 1.5% cash back on every purchase, every day with Quicksilver.

• Explore Capital One’s credit cards for building credit with responsible use.