Legal Liability and Unexpected Risks
Debt on joint credit cards is the legal responsibility of all joint account holders; that is, if one person spends and does not pay, the other may be required to pay the entire amount. In the US, even if one of the joint account holders maxes out the credit card and disappears, the card company can sue the other joint account holder for the entire debt. In some states, joint credit card debt is considered “marital debt” rather than personal debt in the event of divorce, and the court may divide the payment between both parties.
Regardless of who makes the purchase, both positive and negative effects on credit scores are reflected for both parties. Even if the card is believed to be used by only one person, the other person's credit score may be seriously damaged if the limit is exceeded.
Hidden Effects on Credit Scores
A joint credit card can cause one partner to appear inactive while the other is very active, creating an impression of “underutilization” in the credit history. Even if the credit limit is not exceeded, the joint user's minimum payment can lower the score because the system reflects payment discipline on all users.
Even if you wish to separate or use individual accounts, some credit institutions require both parties' consent to remove the “joint user” from the account. When a long-term joint account is closed, it may result in a “closed account” loss in both individuals' credit histories, leading to a score decrease. If one of the joint account holders files for bankruptcy, the existing card debt may remain solely in the other party's name.
Non-Trust-Based Risks
According to data from the US Federal Trade Commission (FTC), 30% of identity theft incidents occur among spouses, family members, or close friends. A user added to a card cannot apply for a limit increase without the cardholder's permission; however, someone with a joint account can directly increase the limit, which can suddenly put the credit score at risk.
Although credit card statements are believed to be sent digitally to both parties simultaneously, in practice, if one party misses a notification, the entire payment process may be affected. Sometimes, partners do not clearly separate their expenses, which can cause both financial and emotional conflict. Over time, the question of whether a purchase made on a shared card was “approved or not” can turn into a trust issue, leading to minor crises that can strain relationships.
Differences Compared to a Second User Card (Authorized User)
In the US, when someone is granted “authorized user” status, they can use the card but do not bear legal liability for the debt; this is very different from a joint account. Even if someone added as an authorized user spends up to the limit, the primary user is responsible for paying the debt, and the credit score is only affected by the primary card.
A joint account is different: both individuals are considered primary users, so debt, credit scores, and late payments result in equal liability. Some people start building their own credit history when they become authorized users; this method is commonly used in the U.S. for young adults to establish their first credit history. A joint card, however, can be risky for someone just starting out because credit limit breaches and payment discipline issues can have serious negative effects from the outset.
Technological Tracking Challenges
Some banks' mobile apps do not specify who made which purchase, which can lead to irreversible confusion. AI-powered spending categorization shows only the category and amount, not the spender, making it difficult to separate accounts.
Many people have to manually record their spending when using a joint card, which unnecessarily complicates the card usage experience.
Psychological and Relationship-Based Tensions
Financial stress experienced by couples who use joint credit cards can turn into communication problems and feelings of insecurity over time. Arguments about who spent more this month can often lead to major rifts over small details. “Surprise” purchases appearing on the card statement can undermine feelings of privacy when they require an explanation from partners.
Joint cards, especially in couples with income disparities, can create unequal spending pressure and lead to a hidden power imbalance between partners. In some couples, using a joint card can turn into one partner tracking the other or using it as a tool to control spending.
Real-Life Reflections and Lawsuits
In a divorce case in the US, a joint credit card debt was assigned to only one party by the court, and that person was forced to continue paying it alone for three years after the marriage ended. In Canada, a user was forced to file for bankruptcy after their former partner spent the entire limit on a joint account; their credit score dropped by 200 points. According to a study conducted in the UK, 38% of divorced couples had to maintain contact after separation due to joint credit card debt.
Many users experience a significant shock when they discover that a joint card has not been closed years after marriage and still appears on their credit report. In some cases, the credit card debt of a deceased partner can be directly transferred to the surviving joint account holder.
Alternatives to Joint Card Use
Individual cards and automatic expense-sharing apps (such as Splitwise, Zeta, Honeydue) provide both control and transparency. The “authorized user” model allows joint spending without risking one's credit score, but it still requires careful use. Opening a joint bank account to manage a two-person budget is a more controlled structure than a credit card, as only the money withdrawn is spent, and no debt is created.
For couples seeking financial transparency, digital expense tracking apps offer a less stressful way to manage a joint budget through separate cards. To avoid damaging individual credit histories, it is recommended that each user make payments through their own card using a “virtual transfer” method for a predetermined amount each month.
Long-Term Financial Results
Although using a joint credit card may seem practical in the short term, it can destabilize the credit history of one of the parties in the long run. Joint accounts that are not closed after divorce or separation can lead to negative surprises when applying for credit years later. Closing a credit card can lower your credit score by 10–15% because it shortens the average account age; these effects usually become apparent after 6 months.
A single late payment made while using a joint account can reduce both parties' chances of obtaining a mortgage or car loan in the future.
Expert Recommendations
American credit counselors recommend “transparent separate financing” methods instead of joint accounts. Financial boundaries should be clearly discussed and a written agreement should be made before marriage or when deciding to live together, as this increases trust in the long term.
Lending institutions should offer a unilateral exit option for users wishing to leave a joint account; however, this is currently only available at a limited number of banks. Experts argue that a culture of “joint planning” rather than “joint borrowing” leads to much healthier outcomes.