Weigh the benefits of a joint credit card
There are reasons to consider a joint credit card account if you and your partner are on the same page financially. First, there's the transparency factor. If you share a budget, using a joint credit card can be a good way to hold one another accountable for what you're spending and plan to spend.
A joint credit card can also take some of the headaches out of budgeting and paying bills. You can simply charge shared expenses to the card each month rather than divvying them up.
Using a joint credit card can also be a good way for both spouses to build and maintain their credit.
The activity on a joint credit card account is reported on both of your credit reports. If you're both using the card responsibly, that could help to improve your credit over time.
Watch out for the pitfalls of a joint credit card
While a joint credit card account has some upsides, it's not always ideal. If your spending habits differ, this can cause conflict. If one partner accumulates a lot of debt or misses payments on the card, both account owners' creditworthiness can be affected.
In some cases, your partner's creditworthiness may actually keep you from getting approved for a joint credit card altogether. If that happens, your partner may be better off applying for a secured credit card, which may help them rebuild credit.
You can add your partner to one of your existing credit card accounts as an authorized user if their creditworthiness may be hindering you from getting a joint card. Just bear in mind that as the primary cardholder, you – not the authorized user - are responsible for all charges, including the ones you don’t make. The card issuer may also report authorized users to the credit bureaus, so that the account activity is reflected on the authorized user’s credit report.
Deciding between getting a joint card and adding an authorized user
Whether opening a joint credit card account or adding your partner as an authorized user to your existing credit card account, what makes sense ultimately comes down to how each of you approaches your finances, your individual creditworthiness and what you hope to accomplish with your money individually and as a couple.
If you are considering a new credit card - whether it’s a joint credit card or a credit card that you intend to add your partner to as an authorized user - take the time to review the annual percentage rates and fees carefully. If there's a rewards program, make sure it's a good match for both your spending styles. Finally, consider how you will both use the card and set some ground rules. The more thought you put into your final selection, the better your experience with sharing a credit card is likely to be.
Disclosure: This article is for educational purposes. It is not intended to provide legal, investment, or financial advice and is not a substitute for professional advice. It does not indicate the availability of any Citi product or service. For advice about your specific circumstances, you should consult a qualified professional.