Does a Joint Credit Card Score Affect Both People?

A joint credit card account is one in which two individuals are both full account holders on a credit card. Both individuals have a credit card issued in their name, the purchases all go onto a common bill and both of them are held legally responsible for repaying that debt. Therefore, the joint credit card account will affect each of their credit scores.

Both Credit Reports

A joint credit card account appears on the credit reports of both account holders. The account information, including the date on which it was opened, the credit line, the outstanding balance and the payment history, all goes on both reports. Therefore, positive history will help both account owners and negative history, such as late payments, will hurt both account owners. Even married couples have separate credit reports, so a joint credit card account is a way to build credit for both the husband and wife.

Credit Score Effects

A joint credit card affects all aspects of each account holder's credit score. Opening the credit card results in a credit inquiry that will slightly lower the credit scores, as will the new account. Having a credit card can increase the scores by diversifying the types of credit and, over time, increasing the average age of credit accounts. Paying the bills on time helps the account owners' credit scores, whereas missing payments hurts both credit scores. The last portion of the credit score considers the account balance, specifically the ratio of the balance to the limit. Therefore, both account owners need to pay attention to keeping the balance to a low percentage of the credit limit.

Considerations

People wishing to open a joint credit card together should carefully determine how they will use the card and pay the bills. Because both individuals are responsible for payment, they should agree on what expenses are acceptable to pay for with the card. In addition, they should pay the bill from a joint account or specify the agreement by which they will pay each month. Otherwise, they may find themselves missing payments and damaging both of their credit scores. In addition, they should consider that a joint credit card account is difficult to close because the company will rarely allow one person to just remove his name and obligation. Instead, they will need to pay it off in full or transfer the balance to one or more individual accounts.

Joint Owners vs. Authorized Users

Getting a joint credit card is not the only way to have two people spend on the same credit card account. Many credit card issuers allow an account holder to add authorized users. These users get a credit card linked to the account, but they have no legal responsibility to pay the bills. This arrangement puts the primary account holder at risk because the authorized user has no consequences for overspending. The account history sometimes appears on the credit report of the authorized user, but the user can request at any point to have that account removed from his credit history.