Two Options For Setting Up A Joint Credit Card | CreditShout

Two Options For Setting Up A Joint Credit Card

By Kevin / August 8, 2010

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Do you want the convenience of having one credit card for two people? If so, there are a couple of ways of going about it. This is actually a topic that we receive a lot of questions about. However, before you call up the card company make sure you understand the ramifications that may be involved.

Option 1: Joint Credit Card Account

If two people (like a married couple) apply for a card together, they will each receive what is known as a joint credit card account. Both of them will be equally responsible for the debt, and all purchases each month are combined into a single monthly payment. But if one user tends to spend more than the other, they still have to share the debt equally. And if the relationship dissolves, the debt still must be paid off by both parties.

Option 2: Add an Authorized User

There is another option: adding another person (like a teenage son or daughter) to an existing credit card account, where that additional individual becomes an authorized user of the card. In this case, the primary accountholder is still responsible for all the payments. This allows someone with less-than-stellar credit to enjoy the benefits of a credit card – and you can also establish a separate credit limit for the authorized user. But if the authorzied user exceeds that limit and/or racks up hefty fees in the process, the accountholder is on the hook for them. You can read more about Authorized users and “Piggybacking” credit here.

As you can see, there are pros and cons to each approach. So make sure you determine which option is best for you before signing anything on a credit card application.

The editorial content on this page is not provided by any of the companies mentioned and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are the author's alone.Additionally, the opinions of the commenters are not necessarily the opinions of this site

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