How a Credit Card Joint Account Works

Individual credit card applications often require individuals to fulfil a range of qualifying criteria. In addition to having a good credit record, applicants generally need to be above the age of 18 years old, with a permanent form of employment. 

How does a credit card joint account work? 

With a credit card joint account, both applicants share equal right and responsibility for paying the balance on the account, regardless of who incurred the charge.

Account activity on a credit card joint account affects both cardholders’ credit records.  This essentially means that your credit rating will be affected by both positive and negative account activity.

Credit card decisions for this type of card are based on information from both applicants’ credit files, including each person’s credit history and score, as well as their income and debt ratios. As a result, not all people may qualify for a credit card joint account.

Before applying for a credit card joint account, it’s important that you do your research. For instance, another option besides this is that of adding an authorised user to your credit card account.

What’s the difference? 

An authorised user has no legal obligation to repay the credit card debt. With a credit card joint account, you share responsibility for making payments. Missed payments and overspending will hurt you both

According to finance site NerdWallet: 

“In either case, it’s important to realise that as a joint account holder or primary account holder, you’re responsible for all charges on your account, whether they’re made by you, an authorized user, or another joint account holder.”

There’s one credit limit, one balance, one payment as well as one payment due date.

Qualifying isn’t always easy. Each joint account holder must meet the credit and income requirements to be added to the account.