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The Points Guy believes that credit cards can transform lives, helping you leverage everyday spending for cash back or travel experiences that might otherwise be out of reach. That's why we publish a variety of editorial content and card comparisons: to help you find a great card to turn your goals into reality.
Our site may earn compensation when a customer clicks on a link, when an application is approved, or when an account is opened with our partners, and this may impact how or where these products appear. While we don't cover all available credit cards, our editorial team creates and maintains all of the analysis of these cards, and our content is not influenced nor subject to review by any credit card company, bank or partner prior to (or after) publication. Please view our advertising policy and product review methodology for more information.
Michelle Lambright Black, Founder of CreditWriter.com and HerCreditMatters.com, is a leading credit expert with over a decade and a half of experience in the credit industry. She’s an expert on credit reporting and scoring, credit cards, identity theft, budgeting and debt eradication. Michelle is also an experienced personal finance and travel writer. You can connect with Michelle on Twitter (@MichelleLBlack) and Instagram (@CreditWriter).
November 16, 2024 • 8 min read
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Quick summary
Joint credit cards are increasingly rare, with most issuers now favoring authorized user options for shared accounts.
Both joint account holders and authorized users can help build credit and centralize rewards, but liability and removal processes differ significantly.
Joint account holders share full responsibility for all charges, while authorized users can typically be removed more easily and may have spending limits set.
Closing a joint credit card can impact credit utilization and potentially affect credit scores, but the account's age continues to count toward credit history for several years.
What to consider
Joint accounts are difficult to remove without closing the account, and both parties remain liable for all charges until closure.
Authorized user status may not always be reported to credit bureaus, which can limit its usefulness for credit building.
Closing any credit card can raise your credit utilization ratio, so paying down balances beforehand is recommended to minimize score impact.
What you'll miss from the article
A detailed comparison of joint accounts versus authorized user status, including practical steps for managing or closing shared credit cards.
Generated by AI with support from our editorial team.
Joint credit cards are like pay phones, CD players and incandescent light bulbs — they are slowly becoming things of the past.
Still, now and then, you may come across a credit card offer that allows you to include a joint account holder on your application — but is that a good idea?
It is usually not wise to co-sign with another person when you open a credit card account, especially since the option to add them as an authorized user is available. Keep reading for a breakdown of why joint credit cards are probably a bad idea.
The difference between joint account holders and authorized users
There’s nothing wrong with sharing a credit card with someone you love and trust. In fact, sharing your account can boost your rewards-earning potential and encourage financial transparency between you and your spouse. Sharing a credit card can also be a smart way to help a child or loved one establish credit.
If you want to share a credit card, there are two ways to do it. You can open a joint account, or you can add an authorized user to your existing credit card.
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Here’s a look at some of the similarities and differences between joint credit cards and authorized user status, along with some of the risks and rewards of each type.
Similarities
Both joint account holders and authorized users can help you accrue rewards faster and hit spending thresholds sooner.
With joint accounts and authorized user credit cards, rewards earned are typically stored in one place, making them easier to manage.
Primary account holders are responsible for charges made by both joint account holders and authorized users. For this reason, it’s important to only share a credit card with someone you fully trust.
Joint cards and authorized user status could help your loved one build credit. A well-managed account might even improve the other user’s credit scores (provided the accounts show up on his or her credit reports).
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Differences
Some card issuers don’t report account history to the credit bureaus for authorized users. This can be problematic if you’re sharing a card because you want to help someone build credit.
The liability for charges is different on joint credit cards. Both cardholders are fully responsible for any charges made on the account.
Some card issuers allow you to add spending limits for authorized users. Joint cardholders always have access to the full credit line. This is an important distinction if you want to limit your risk on a shared credit card.
If an authorized user wants to be removed from an account, he or she can usually call the card issuer and ask to be taken off. The account is generally removed from the authorized user’s credit reports at that time (if it was added in the first place). A joint account holder can’t be removed from a card but can only close the account.
Unfortunately, closing a joint card won’t remove it from your credit report. So, if you’re hoping to remove negative credit history by closing a joint account, you’ll be out of luck until the account reaches its credit reporting expiration date (usually seven years from the date of the late payment or other negative credit histories you’re trying to escape).
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Hands down, the safest way to share a credit card with someone else is to add an authorized user.
It’s also worth noting that many card issuers have stopped offering joint credit cards, making these types of accounts more difficult to find, even if you want to open one.
If you opened a joint credit card without fully understanding the risks, try to relax. A well-managed joint credit card might never cause you any problems (especially if you share the account with someone whose financial views you share). In fact, a well-managed joint credit card account could help both you and your co-cardholder build better credit.
It’s also not necessarily a good idea to rush out and close a joint card without cause. But because of the risks associated with joint cards, it does make sense to work toward paying the account down to zero ASAP (and to keep paying the full balance monthly moving forward).
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That said, there are a few reasons why closing a joint card may be in your best interest:
You’re going through a separation or divorce from your joint account holder.
You co-signed for a loved one who isn’t managing the account responsibly (e.g., late payments or high credit utilization).
The card features a high annual fee (which you’ve tried and failed to get waived), and the benefits of the account don’t outweigh the fee.
However, even if you have a valid reason for closing a joint credit card, doing so could harm your credit scores.
The reason that closing a credit card account (joint or otherwise) can potentially damage your credit scores is because the account closure might increase your credit utilization rate.
“Credit utilization” describes how much of your available credit limits are being used on credit card accounts. When you close a card, you no longer have access to that available limit. As a result, if your credit reports show a balance on any credit card account, your utilization rate (aka your balance-to-limit ratio) will increase.
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The higher your credit utilization ratio climbs, the worse it is for your credit scores. Your best bet is to pay off all your credit card balances every month (preferably before the statement closing date so a $0 balance could be reported to the credit bureaus for the month). This payment strategy is not only good for your credit scores, but it’s good for your wallet as well.
Before you close a credit card account, you definitely should try to pay all your other credit cards to zero, if you can. This may help you avoid any dings to your credit scores from a higher utilization ratio.
Of course, sometimes closing a joint credit card can’t wait. When you’re going through a divorce, for example, you probably won’t want to be responsible for your ex’s new charges. Closing the account can protect you from these potential problems.
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Some people claim that closing a joint credit card also causes you to lose credit for the age of the account. In other words, some believe your length of credit history could be negatively affected by closing a credit card and — since that’s worth 15% of your FICO score — it could hurt your credit scores.
Here’s the good news: Closing a credit card won’t shorten your length of credit history — at least, not until the account is removed from your reports in around a decade. The account will remain on your credit reports, and FICO scoring models (used by 90% of lenders) will continue to count the card in the average age of your accounts.
You should think long and hard before signing onto a joint account credit card with a family member, friend or loved one. At the same time, you should also think long and hard about closing a joint credit card account (or any credit card account), even if you have a good reason for ending the financial relationship.
By commenting, you agree to our Community Guidelines to help create a positive space for conversation. The responses below are not provided or commissioned by the bank advertiser, our partners, or The Points Guy (“TPG”). They have not been reviewed, approved, or otherwise endorsed by any of these parties. All responses are submitted by individual contributors, and neither the bank advertiser, our partners, nor TPG are responsible for ensuring that all posts and/or questions are answered.
