Shared Credit Cards: Joint Credit Cards vs. Authorized Users

You can share a card primarily through two methods: joint credit cards and authorized users. Partners who blend their financial lives often share a credit card account to track expenses and build or maintain their creditworthiness. Although applying for a joint credit card or adding your partner as an authorized user to an existing account can simplify how you manage your money, it's not right for every couple.

If you're considering sharing a credit card with your partner, here are a few things to consider.

Joint credit card account vs. authorized user: What's the difference?

Here’s how joint credit cards and authorized users compare.

Joint credit cards

If you and your partner apply for a new credit card as joint accountholders, you agree to share the responsibility to pay any balances owed and otherwise abide by cardholder agreement terms — even if only one of you uses the card or pays the bills. If one partner makes a late payment, it can impact both partners’ creditworthiness, even if only one partner uses the credit card for purchases.

When you have a joint credit card account, you are each responsible for the debt accumulated on that account. Some credit card issuers, however, do not offer joint credit cards. You'll have to ensure that the issuer has joint credit cards before applying.

Authorized users

On the other hand, authorized users are not responsible for the balances they accumulate. If you add your partner as an authorized user on your credit card account, you are responsible for anything your partner spends on the account. The card issuer may also report authorized users to the credit bureaus, meaning activity on the account could impact an authorized user’s creditworthiness. Check with the issuer to find out if it reports authorized users to the credit bureaus.

Why does credit matter?

Your credit helps lenders assess how likely you are to repay a loan. Lenders use credit scores and other information to evaluate risk. Applicants with better creditworthiness may earn more favorable borrowing terms. Getting married doesn’t affect an individual's creditworthiness since spouses maintain individual scores — and not one "married" score — throughout their lives.

The strength of your credit can set the tone for what you can achieve financially. For example, if you plan to buy a home with a joint mortgage, having better creditworthiness may help you secure a larger loan or qualify for a better interest rate.

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.