How does joint credit work

Making payments on time and keeping the balance low can help both cardholders build a positive payment history. But the opposite is true too. So if a cardholder decides they no longer want or need to have a joint credit card—for whatever reason—they may only have a couple of options:.

One alternative to a joint credit card is having a co-signer. Co-signing for a credit card is different from being a joint cardholder. A co-signer could also help the applicant get more favorable terms than they might on their own.

But there are also potential disadvantages to being a co-signer. Another alternative to a joint credit card is to add an authorized user. Adding an authorized user to an existing credit card account gives another person access to that account. Use precise geolocation data. Select personalised content.

Create a personalised content profile. Measure ad performance. Select basic ads. Create a personalised ads profile. Select personalised ads. Apply market research to generate audience insights. Measure content performance. Develop and improve products. List of Partners vendors. The term joint credit refers to any type of credit facility that is issued to two or more people based on their combined incomes , assets, and credit histories.

The parties involved share everything about the debt including the credit limit and the responsibility to repay it back to the lender. Joint credit can be used when one individual has little to no credit or a bad credit report, and when two or more people need access to a large credit limit that they wouldn't qualify for individually.

Joint credit is any type of debt that is owned—and owed—by two or more people. Two or more individuals may consider applying for joint credit if they're getting married or co-signing a mortgage.

It is imperative to review all parties applying for joining credit. Consumers can take out joint credit on any number of accounts including mortgages, loans, credit cards, and lines of credit LOCs. In order to obtain joint credit, each party must submit their personal information on a credit application. These details include their names, addresses, dates of birth, income, Social Security numbers SSNs , and any other pertinent information.

Each individual must also sign the application. Savings Accounts. Home Equity. Invest with a J. Morgan Advisor. Online Investing with J. Chase for Business. Commercial Banking. See all.

About Chase J. Credit Card Marketplace. Do joint credit cards affect both credit scores? What are joint credit cards? Joint credit card vs. Build good credit with your joint credit card All joint credit card account owners will see the payment history, credit usage, and age of the joint account factor into each of their personal credit histories and contribute to their individual credit scores: Each on-time payment to the joint credit card could add a positive record to each account owner's credit payment history.

Keeping the debt of the joint credit card low when compared to the credit card's limit will reduce the credit utilization ratio, a factor that influences your credit score.

What's more, depending on your spending habits and the issuer, having two users on an account can help you rack up credit card rewards faster. Additionally, if you have poor credit FICO scores of or lower , setting up a joint account with a partner with stronger credit can give you access to better card options.

Authorized users will be given their own cards with which they can make charges. But unlike joint account holders , authorized users aren't liable for the debt. Secured credit cards. This deposit mitigates the risk to the issuer and makes it easier for individuals with poor credit to qualify for the card.

Try these alternative options. What to know before getting a joint credit card account. Your credit scores could suffer if the relationship deteriorates.