Is Opening a Joint Credit Card Ever a Good Idea?

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You don’t want to make the wrong call here. 

Opening a credit card is a big decision. How you use the card will affect your credit for years to come and, if you carry a balance on the card, it could affect your ability to save for your other long-term goals too.

When you’re thinking about opening a joint credit card, there’s even more you have to weigh. Here’s what you need to know to decide if this is a smart move for you.

How do joint credit cards work?

A joint credit card works the same as a regular credit card, but it allows more than one person to charge items to the account. The card owners don’t have to be related in any way, though they often are. Both parties on the credit account are liable for the bills and the creditor may pursue both of them if they default on their debt.

These credit accounts are rare, so those interested in them will have to do some digging to see which cards will allow this. But more importantly, you have to make sure you’re on the same page with your partner.

If the two of you disagree about how to use the credit card, it could damage your relationship as well as your credit. Be sure to sit down together and discuss how you’ll use the card, who will handle the bill payments, how you’ll redeem any credit card rewards, and whether you need each other’s approval to charge expensive items to the card. You should also discuss how you’ll handle it if one person wants to close the card.

Alternatives to joint credit cards

Since joint credit cards are pretty uncommon, it may not be possible for you if you have a specific card you want to open. But there’s another option that can help you achieve a similar effect with a lot less hassle: authorized users.

One person opens the credit card as the primary account holder, but they may designate other authorized users that they want to have access to the card. These authorized users may use the card just as they could a joint credit card, but they aren’t legally responsible for paying the bills.

This arrangement is much more common, and it can be a lot easier on you because you can remove an authorized user at any time if you choose. Unlike joint credit cards, you don’t have to close the credit account to remove it from the other person’s credit report.

Enabling a child or partner to become an authorized user on your credit card is a great way to help them build or improve their credit. Even if they don’t actually charge any items to the card, the account will still appear on their credit report and your on-time payments will help them raise their credit score over time.

That said, authorized users can be subject to some of the same possible pitfalls as joint credit cards. If the primary account holder and the authorized users disagree about how to use the card, the primary account holder could find themselves facing unexpected charges. All authorized users should sit down with the primary account holder to discuss expectations and how they’ll pay for any items they charge to the account.

No matter which option you choose, be sure to keep the long-term consequences in mind. And check in with the others sharing the credit account periodically to make sure everyone’s still happy with the arrangement. Doing this will help all users avoid unpleasant surprises.

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