Chase Says Goodbye to Joint Credit Card Accounts

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shutterstock_120677254Chase has announced that it is getting rid of joint credit card accounts. According to CNN Money, there are a number of credit card issuers that don’t allow joint credit card accounts, and Chase is just one of many.

Joint credit card accounts have been popular in the past, since they allow couples to share credit cards, and it allows someone without income (such as a stay-at-home partner) access to credit. However, credit issuers are no longer allowed to use income as a factor in rejecting a credit card application.

CNN Money points out that Chase, and other issuers that don’t allow joint accounts, can avoid scrutiny about their practices — at least as it relates to income requirements and credit denial.

Joint Account vs. Authorized User

A joint credit card account is one in which the credit is in the names of both people. Each is equally responsible for repaying the debt. Now that Chase is getting rid of that option, a consumer would need to have his or her own separate account, or be added as an authorized user to someone else’s account.

An authorized user has permission to use the credit card account, and usually has a card issued in his or her name. However, only the primary account holder is responsible for the debt. So, if you have a credit card account, and you add your partner as an authorized user, you can be liable for all of the debt he or she racks up — even after the relationship ends.

In many cases, it makes sense to just get your own credit card account and let your partner have his or her own.

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Miranda is a freelance writer and professional blogger specializing in financial topics. Her work has appeared in numerous media, online and offline. Her blog is Planting Money Seeds.