Whether you’re newly married or have been partners for decades, joint credit cards can simplify managing finances. That said, applying for a joint credit card isn’t a move to be taken lightly. It’s a significant financial commitment, as you’re essentially tying your finances together.
In this guide we’re going over how to apply for a joint credit card as well as the benefits and risks to navigating the application process and managing your joint account responsibly.
MoneyLion can help you explore a wide variety of credit card options tailored to different needs and preferences.
What is a joint credit card?
A joint credit card is a traditional credit card with two primary account holders. These joint accounts are shared by two people; each cardholder gets their own card that’s linked to the account.
Note that joint credit card holders are different than adding an authorized user to a credit card. With an authorized user, there is one primary cardholder responsible for all charges. With a joint credit card, both cardholders are responsible for all charges.
Since credit scores don’t automatically merge when you get married, a joint credit card can be a great way to build a positive credit history together.
How to apply for a joint credit card
If you’re ready to apply for a joint credit, follow these steps for how to apply for a joint credit card:
1. Research and compare joint credit card options
Start by researching different credit card providers that offer joint credit cards. Compare interest rates, rewards programs, fees, and other features to find the best option for you and your co-applicant.
Opening a new credit card is one of the best times to score big rewards. Make sure to consider cashback offers, 0% APR introductory periods, and other perks. Remember to choose a card whose required spend for rewards is similar to your usual spending habits.
2. Gather required information
Next, you may want to contact the chosen credit card issuer to confirm its application requirements. Gather necessary documents such as identification proof, Social Security numbers, proof of income, and any other requested documentation. Usually, for a credit card application, you can fill out all the information online.
3. Fill out the joint credit card application
Go to the issuer’s website or visit a branch to access the joint credit card application. Provide the requested personal and financial information for both applicants. Make sure to accurately disclose each applicant’s income and other relevant details.
4. Submit the application
Review the application for errors or omissions before submitting it. In most cases, you can apply online or even send your application in through the mail. Some issuers may require both applicants to sign the application physically. However, online lenders typically only require an online application.
5. Wait for approval and receive the joint credit card
After submitting the joint credit card application, you’ll need to wait for the issuer’s decision. Depending on the type of provider you work with, you might get a response immediately. In other cases, the credit card issuer may require additional information or a longer processing time.
If approved, your joint credit card will be issued shortly, typically with shared liability for the account. You should receive the credit card in the mail. Once received, it’s time to activate the cards and begin using them responsibly, making payments on time and keeping the balance within your credit limit.
Recommended: How to Manage a Credit Card
Things to consider before applying for a joint credit card
While a joint credit card can provide you with benefits, such as financial transparency and credit-building as a couple, there are some factors to consider before plunging in.
1. Understand the financial responsibility
Before getting a joint credit card, make sure you and the other person understand the financial implications and are both willing to take on the responsibility. This involves building trust and clear communication about financial goals, spending habits, and how to handle debt.
Irresponsible spending behavior or late payments can show up on both of your credit reports and harm your credit scores. To protect yourselves, it’s important to decide who will be responsible for making on-time payments or whether you’ll both double-check this each month.
2. Shared financial goals
A lack of shared financial goals can be a source of conflict in a relationship. With a joint credit card, that discord gets thrust into the spotlight. It’s important that both parties have a similar mindset when it comes to saving, budgeting, and using the credit card responsibly. Consider getting on the same page before applying for a joint credit card.
3. Discuss spending limits and boundaries
Over-communication for clarity is arguably better than making assumptions that can later lead to conflict, disappointments, and a big bill.
Talk about spending limits and establish clear boundaries for using the joint credit card. Agree on what types of purchases are acceptable and what should be discussed before charging on the card.
4. Have a plan for handling disagreements
Before getting a joint credit card, have a plan in place for how to handle disagreements or conflicts that may arise regarding the use of the card or repayment of the debt. Consider writing it out or agreeing together on the best strategy to move forward. When a disagreement arises, refer back to your agreed-upon strategy.
If you already have debt, make a plan together to address it. For example, decide how much of your monthly budget will go to repayment debt. You can use balance transfer credit cards with 0% APR offers to save on interest while paying off debt.
Alternatives to a joint credit card
Joint credit cards aren’t the only option to share finances and a credit card account. Consider also an authorized user or co-signer. Here’s how these work.
1. Add an authorized user
An authorized user benefits from the credit score and history of the primary cardholder and can make charges on a credit card in their name. However, the authorized user isn’t responsible for paying the credit card charges; that remains the responsibility of the primary cardholder.
One possible solution is for one member of the couple to act as the primary cardholder and the other to be an authorized user. You could do this on multiple accounts, with each person acting as the primary cardholder on one account.
2. Have a Co-signer
A co-signer means you’re responsible for the payments if the other person fails to pay. This alternative to either a joint credit card account or adding an authorized user offers another option for couples to share finances.
Becoming or adding a co-signer is especially useful if one member of the couple can’t apply for a credit card on their own. If you have recent financial setbacks that have impacted your credit score, a cosigner with good credit can help offset those negative marks.
Building Your Financial Future Together
Joint credit cards are one tool you can use to build credit history and more easily manage finances as a couple.
Whether you choose a joint credit card, add each other as authorized users, or maintain separate credit card accounts, the key is working together towards shared goals. When you’re on the same page, you’re one step closer to building the financial future you envision.
FAQ
Can anyone apply for a joint credit card?
Yes, anyone can apply for a joint credit card. Whether you’re accepted will depend on the credit score, credit history, income, and other considerations related to both applicants.
Can both applicants have equal ownership of the joint credit card?
Yes, with a joint credit card, both applicants have equal ownership and responsibility for the credit card account.
Do both applicants need to have a good credit score to be approved?
Whether both applicants need to have a good credit score to be approved for a joint credit card depends on the lender and other individual considerations. If you’re not approved for a joint credit card, the applicant with a good credit score can apply for a credit card and add the other applicant as an authorized user to help boost their credit score.
