Joint Credit Cards Are Going Extinct

Joining bank accounts and applying for a joint credit card are common steps for couples that are getting married or moving in together. But, like picking out a china pattern, that may soon be going the way of the dodo. Chase joined several other credit card issuers when it announced that it will no longer offer joint credit cards. A spokesperson said they wanted to “simplify” what they offer their customers.

Are Joint Credit Cards Even Necessary?

Credit card issuers look at an applicant’s credit history and income when deciding whether to give credit, and for how much. For stay-at-home moms and stay-at-home dads who had no income, that used to be a problem. Now the household income is considered when issuing cards, meaning that individuals can get cards in their own name.

For couples that split up, the disadvantages of a joint credit card are all too clear. Even if one person is responsible for maxing out the card, the other is equally responsible for paying it back. And for couples that don’t split, the card can cause stress if one partner has bad spending habits. That’s because payment history and other information is reported to both account holders’ credit reports.

Alternatives to Joint Credit Card Accounts

Instead of a joint credit card, you can have one partner become the primary cardholder on a new card and add authorized users to the account. Again, payment history and other information is reported to both credit reports, so all users must be in agreement on how to use the card. And because the primary cardholder is ultimately responsible for paying back the balance, they should be very careful about adding authorized users. Finally, the primary cardholder can remove an authorized user any time without their permission. This is good news for the primary cardholder if a user’s spending suddenly goes out of control, but can be bad news for a user who suddenly discovers they have no credit.

The other alternative is for both partners to apply for individual cards. Each person is the sole person authorized to use the account, and information is reported only to the individual’s credit report. In this case, you don’t run the risk of finding yourself on the hook for debts you didn’t incur, and if you use the card responsibly, you’ll even improve your credit. Other advantages: if you choose cards without an annual fee, you won’t get hit with twice the fee but you will get double the sign-on bonuses.

Note that for couples living in community property states (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin) they may be considered responsible for their partner’s credit card debts, even if their name is not associated with the account.

Several Banks Still Offer Joint Credit Cards

If you still want to open a joint credit card, you’re in luck. Discover, Bank of America, U.S. Bank and Wells Fargo still offer them. American Express and TD Bank have never offered them, while Capital One and HSBC used to but stopped.

For Chase customers with existing joint credit cards, their accounts won’t be affected.