Whether it's for your partner or a friend, there are plenty of reasons why a joint credit card can be a good idea.
It can help you to keep track of your spending, allows both card holders access to the credit if they need it, and there can be valuable perks such as cashback and rewards. It can also, if used correctly, help you build credit.
In this article, we'll be taking a closer look at what joint credit cards are, how they work in the UK, the pros and cons , and some of our top choices.
| Provider | Score | Details |
|---|---|---|
| 1. HSBC | ★★★★★ | Learn more |
| 2. Barclays | ★★★★★ | Learn more |
| 3. American Express | ★★★★★ | Learn more |
What is a Joint Credit Card?
In essence, a joint credit card is simply a credit card account that multiple individuals share.
The credit card can be linked to a current account, or it might be a standalone product. Both card members have access to the card (and the account).
Both card holders are able to use the card, but legally it's the main cardholder who is responsible for paying it off. Therefore before you take one out, it's worth considering what might happen if a card holder was unable to repay the credit.
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How Do Joint Credit Cards Work?
Responsibility or Liability
The main card holder, also known as the primary or principle account holder, is responsible for the card being repaid on time.
Consolidated Rewards
If two people are using the same credit account, this can increase the overall spending. If the card has rewards this means you could boost the returns you make – usually in cashback or points.
Consolidated Statements
All of the transactions made by each cardholder will appear on the same bank statement at the end of the month, making it easier to collectively manage your finances.
3 Best Joint Credit Cards In The UK — Reviews
Here are some of the best credit cards that can be opened with more than one card holder.
1. HSBC
HSBC offers various different credit cards that can be used as joint accounts. Aside from some of the perks offered with this card, like rewards programs and travel benefits, HSBC offers quite competitive interest rates.
In the interest of responsible usage, they also provide some tools for managing your joint expenses and allowing you to monitor spending habits.
Still, before applying for a credit card with HSBC and adding another cardholder, always check the specific terms and conditions of each card so you can find one that properly aligns with both of your financial goals.
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2. Barclays
Barclays is another well-known institution that provides an option to add additional cardholders to your credit card.
Similarly to HSBC, all their joint credit card accounts can be managed online, which makes it far easier to set spending limits and generally track your expenses. Make sure you take advantage of their introductory offers, too, so you can start the account with an existing card balance.
Also Read: Barclaycard Business Credit Card Review
3. American Express
Lastly, we have American Express, which also allows joint bank account holders to share credit cards. Now, in comparison to the other credit card options on this list, one of the more notable differences is how impressive American Express's Membership Rewards program is.
Of course, AMEX also provides their customers with the same account management features as the latter options, but the loyalty program is really what makes this option stand out the most.
As mentioned earlier, one of the leading benefits of a joint credit card is the ability to earn rewards faster due to the additional spending.
American Express, in particular, allows their cardholders to earn points which can then be redeemed for some impressive rewards — think of things such as travel bookings, gift cards, or even statement credits.
Also Read: Amex Business Credit Card Review
Pros and Cons of a Joint Credit Card Account
Let's take a look at some of the pros and cons of sharing a credit card.
Pros
1. Convenience and Accessibility ✔️
There's an added layer of convenience with these accounts since multiple people have access to the credit line.
If you're living in the same house, for instance, this helps a lot with shared expenses, such as household bills or family purchases, since you no longer need to make constant transfers or coordinate all your payments — you can do it in one location.
2. Access to Higher Credit Rating ✔️
If you or your partner has a lower credit score than the other and then becomes an additional cardholder, they're now able to benefit from the primary account holder's already established credit history, which means they receive a higher credit limit than what they would be eligible for on their own.
Remember, this isn't a credit builder card, though, as the additional cardholder's credit isn't affected by the primary cardholder.
3. Emergency Situations ✔️
These cards are also good for any unexpected expenses or even financial hardship that the other cardholder faces since the shared credit provides them with immediate assistance without having to apply for another credit card or loan, basically acting like a safety net.
4. Streamlined Budgeting ✔️
Above all, they're also great for budgeting with your partner. Since you share a credit line, you're able to coordinate your expenses and ultimately set collective financial goals far more efficiently.
This can be massively useful when it comes to financial planning and increases transparency within the group in general.
Cons
1. Limited Control ❌️
Unfortunately, additional cardholders often have limited control over certain aspects of the account since it's the primary/authorised cardholder that generally retains the authority to make any changes to the card (such as the credit limit, the ability to add or remove cardholders, or even modify spending restrictions).
Naturally, this can result in a slight power imbalance within the account which could end up being problematic in the future.
2. Financial Disputes and Trust Issues ❌️
You're going to need a high level of trust whenever you add additional cardholders to your credit card account, so it's not advised you open one without serious consideration first.
Disagreements about things like spending habits and financial decisions can easily lead to unnecessary conflicts and strain your relationship.
3. Individual Credit Impact ❌️
Furthermore, don't forget that it's the primary account holder's credit history that's being affected by any of the actions made by the additional cardholders. This means all the debt and personal loans taken out by one of the cardholders ultimately apply to you if they fail to make their monthly repayments.
4. Difficulty in Separation ❌️
Like ending a relationship, closing a joint credit card account can be pretty complicated — especially if there's an outstanding balance on the account. If you're looking to separate financial responsibility from each other, make sure you're always closing the joint account and settling any unresolved financial disputes before doing so.
How to Choose Joint Credit Accounts?
Account Features
Most joint credit cards will have a credit limit and cards for each cardholder. There may also be an app to use and other financial tools to help with managing your finances.
Fees and Charges
Look at all the fees involved before signing up. This includes things such as interest, maintenance, and ATM fees.
Account Ownership and Control
Decide who's having control of the joint account before signing up. You may have an understanding with your other cardholders, but it's the primary cardholder who bears the burden of responsibility.
Final Thoughts
To wrap things up, the benefits are undoubtedly there when you opt for one of these accounts.
Still, it's important not to get caught up in things such as travel perks and other reward schemes without first considering the impact on your personal finances and credit score if any problems arise.
Only the primary cardholder will suffer if, for instance, you and your partner split up and there's an unresolved debt or financial obligation that still lingers.
So, ultimately, always be very hesitant with who you grant permission for your card so you can avoid any problems further down the line.
