What’s a joint credit card?

Joint credit cards can be great financial options for spouses or significant others, or for two family members, as a way to create simplicity in monthly bills, or even as a way for someone to build or repair credit. Before considering applying for a joint credit card, you should consider a few things to determine if these cards are the right choice for you.

With a joint credit card, both people are responsible for paying the monthly bill, and the payments (or lack thereof) will show up on both people's credit history. Additionally, delinquent payments can result in collections action being taken against both individuals. Therefore, you want to make sure your spouse or significant other, as well as yourself, is in a stable financial position to make payments, and will not overuse the card, before applying for one. If both of you are able to pay your balance on time, though, having one bill a month is much simpler when it comes to budgeting, and can simplify paying off older credit card debts, since those other cards will no longer be used.

Relationship disputes can arise as a result of joint credit cards, which is another factor to consider, especially if your partner and you have disparate incomes, or tend to charge different amounts to the card each month. In the event of a divorce or separation, it may be even more difficult to determine who should pay which portion of the bill, and you will still be legally responsible for payment even if your former partner stops paying the balance altogether. If there is any existing balance on the credit card, most card issuers will not let you cancel the card, although you can request that the card issuer not allow any new charges to be added to the card.

Joint credit cards are a way for someone with a bad credit history, or with no credit history, to get a lower APR or better terms than they usually would. If your spouse, for example, has an extremely low credit score, a joint credit card may be the only way that they will be able to get a credit card at all. For families, a joint credit card can be a way to help your child learn financial responsibility and begin building good credit without receiving the high interest rates or extra fees which would ordinarily come along with a first credit card.

-Seth Berger