Shared Credit Cards: Joint Credit Cards vs. Authorized Users

Key insights:

• Sharing a credit card account could help 2 or more people manage shared expenses
• Joint credit cards make both accountholders responsible for paying the balance
• An authorized user may make purchases on a credit card, but the primary accountholder is responsible for making payments
• Both shared credit card options could impact the creditworthiness of everyone on the account

Are you exploring ways to share a credit card? You can share a credit card primarily through 2 methods: joint credit cards and authorized users. People who share financial responsibilities often share a credit card account to track expenses and build or maintain their creditworthiness.

While opening a joint credit card or adding someone as an authorized user can simplify how you manage your money, it may not be the right decision for everyone.

If you’re considering sharing a credit card account, here are a few things to keep in mind.

Joint credit card account vs. authorized user: Key differences

While joint credit cards and authorized users may sound like they operate in a similar manner, they have slight differences that you should understand before making a decision. Both options can allow 2 or more people to access the same line of credit, but the financial responsibility differs significantly.

Here’s a quick look at how joint credit cards and authorized users compare:

Joint credit cards

A joint credit card is one with joint accountholders; both parties agree to share responsibility for paying any balances owed and to abide by the cardmember agreement terms — even if only 1 of you uses the credit card or pays the bills. If 1 accountholder makes a late payment, it can affect both parties’ creditworthiness.

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. Check whether the issuer offers joint credit cards before applying.

Authorized users on credit cards

An authorized user is someone who has been given permission by the primary cardmember to use their credit card account. Authorized users are not responsible for the balances they accumulate. If you add someone as an authorized user on your credit card account, you are responsible for anything that person spends on the account.

One downside to being an authorized user is that the primary cardmember can remove you from the account at any time. 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 see if their credit reporting applies to authorized users on the account.

Benefits of a joint credit card

There are reasons to consider a joint credit card account if both parties 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 each other accountable for each spend.

A joint credit card can also help with budgeting and paying bills together. With a shared credit card, you can track shared expenses on a monthly bill statement, rather than divvying them up.

Using a joint credit card can also be a good way for both accountholders 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 credit card responsibly, that could help to improve your credit over time.

Considerations 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 1 party accumulates significant debt or misses payments on the credit card, both parties’ creditworthiness can be affected.

Alternatively, you can add an authorized user to 1 of your existing credit card accounts if the other party’s creditworthiness prevents you from getting a joint credit card. Just bear in mind that as the primary cardmember, you — not the authorized user — are responsible for all charges, including the ones you don’t make.

How to decide on getting a joint credit card or adding an authorized user

Whether you open a joint credit card account or add an authorized user to an existing credit card account, it ultimately comes down to how you both approach finances.

If you’re considering a new credit card — whether it’s a joint credit card or a credit card on which you plan to add an authorized user — take the time to review the annual percentage rates and fees carefully. If there’s a rewards program, determine whether it’s a good match for both of your spending styles. Finally, consider how you will both use the credit card and agree on set ground rules.

Use the Citi pre-qualification tool to check if you are eligible for a Citi^® credit card with no impact on your creditworthiness.

Shared credit card FAQs

What banks offer joint credit cards?

While joint credit cards are increasingly rare, some banks and financial institutions may still offer them. You should check directly with your preferred bank or credit card issuer to see if they allow 2 primary accountholders on a single application.

Will adding an authorized user to my credit card help their creditworthiness?

Adding an authorized user could help their creditworthiness if the credit card issuer reports authorized user activity to the credit bureaus. If the primary cardmember has a positive payment history and low utilization, those positive factors may reflect on the authorized user’s credit profile.

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.