Which Issuers Allow Credit Cards With Cosigners?
Key Takeaways
- If you have poor or limited credit, adding a close friend or family member as a credit card cosigner can help improve your chances of getting approved.
- Most major credit card issuers do not allow credit card cosigners, but you may be able to open a joint account.
- Becoming a credit card cosigner isn’t usually the best choice since it comes with considerable financial risk.
- Instead of adding a cosigner to your credit card, you may be better off becoming an authorized user on someone else’s account or applying for a credit-building card.
What is a cosigner for a credit card?
If you have less than perfect credit and are worried that you won’t be approved for a credit card, you may want to consider using a credit card cosigner. A cosigner can apply with you to reduce the risk for the credit card company and increase your chances of approval. A cosigner has equal responsibility over a credit card and has legal responsibility for the payment if the primary cardholder fails to do so.
Having a cosigner can help you build credit if you’re struggling to get approved for a credit card on your own. But it can be a financial risk for the cosigner, since cosigned debt will also show up on the cosigner’s credit report.
A cosigner is typically a close family member or friend that has a history of responsible credit use and on-time payments, a stable income and good credit.
Credit cards that allow cosigners
While banks may allow cosigners for car loans, student loans and other types of loans, it’s rare to find one that allows cosigners for credit cards. In fact, most major issuers, including Capital One, Chase and Discover, don’t permit it. But it could be worth checking with a smaller credit union or regional bank to see if they allow credit cards with cosigners.
Tip
Is cosigning a credit card a good idea?
We don’t recommend cosigning as the best choice for obtaining a credit card. Although it can help someone build credit, it carries significant risks for the cosigner, including legal responsibility for the debt and the potential impact on your own credit score. Plus, it’s difficult to find issuers that allow cosigning. Before cosigning a credit card, here are a few important factors to consider:
- Cosigners are responsible for all charges made on the card. If you cosign a credit card, you’re legally responsible if the primary cardholder can’t make payments or stops paying altogether.
- Cosigners may see negative credit impacts. If the primary cardholder misses a payment, it can negatively impact the cosigner’s credit score, since there’s shared financial responsibility over the account.
- A cosigner may experience difficulties obtaining new credit of their own. If the primary cardholder carries high amounts of debt on the credit card, it may be difficult for the cosigner to obtain new lines of credit.
- A cosigner isn’t always made aware of account changes. The primary cardholder may be able to make changes to the account, like obtaining a credit limit increase, without the cosigner’s knowledge.
- Ending a cosigning relationship may mean closing the credit card. Removing a cosigner isn’t an easy process. Generally, the best way to end a cosigning relationship is to pay off the credit card balance and close the account altogether.
- Cosigning can damage relationships. Typically a cosigner is a family member or close friend of the primary cardholder. If the primary cardholder uses the card irresponsibly, it can put a strain on the relationship.
Cosigning as a parent
If you’re planning to cosign or share a credit card with your child, it’s best to come up with a plan before doing so. According to a LendingTree survey, 59% of parents have given their child permission to use their credit or debit card, but 31% of them regret it.“Avoiding parental remorse over card access starts with good communication, says Matt Schulz, LendingTree chief credit analyst. “You have to be crystal clear about your expectations and boundaries around usage of the card, as well as the consequences if things go awry,” he says. “While it could lead to awkward conversations around the dinner table, it’s better to talk about those things in advance instead of doing it once an unexpected bill arrives.”Think about choosing a credit card specialized for teens to build credit on their own.
Alternatives to a cosigner
There are several alternative options for sharing a credit card with someone that are much less risky than cosigning and are offered by top issuers.
Become an authorized user on a credit card
An authorized user is someone who has been added to a credit card account by the primary cardholder. Most credit card issuers allow you to add an authorized user to your account. An authorized user can make purchases on the account but have no legal obligation towards the debt. Unlike cosigning, the authorized user doesn’t have the same permissions, such as the ability to increase the credit limit. With responsible use on the primary cardholder’s end, being an authorized user can help you build credit quickly.
Open a joint credit card
A joint credit card is when two people share the same credit card account. Both account holders equally share responsibility for credit card charges and payment history will show on both accounts. While a joint credit card can be a good way to ensure that one person isn’t fully held accountable for debt, it can also be risky because one accountholder’s poor spending habits could negatively impact the other. Joint credit cards aren’t offered by many credit card issuers, but some like U.S. Bank and Bank of America still allow it.
Learn more about joint credit cards.
Authorized user vs. joint credit card vs. cosigner
| Authorized user | Joint cardholder | Cosigner | |
|---|---|---|---|
| Who is responsible for the debt? | Primary cardholder | Both cardholders | Both the primary borrower and the cosigner |
| Credit check required? | No | Yes, for both cardholders | Yes, for both the primary borrower and the cosigner |
| Can you remove the additional user? | Yes, at any time | Not without the lender's permission | Not without the lender's permission |
Get a secured credit card
If you’re worried about getting approved for a credit card, a secured credit card may be the best option for you. Secured credit cards require a refundable deposit that usually determines the amount of your credit line. Secured cards are easy to get approved for if you have poor or fair credit and can help you quickly build credit with responsible use. Some secured cards even offer a path to upgrade to an unsecured credit card after a certain period of time.
Get a student credit card
If you have a student that you’re looking to get a credit card for or if you’re a student trying to get a credit card, there are student cards that can help get you started. Student credit cards don’t require a cosigner and are typically easier to get approved for even if you have limited or no credit history.
Frequently asked questions
Although it’s not impossible to remove a cosigner from a credit card, it’s generally a challenging process. To remove a cosigner, the primary cardholder may need to meet qualifications to prove that they can manage the credit card and make payments on their own. If the credit card issuer is not confident in the cardholder’s ability to do so, they may be unwilling to modify the contract. Ending a cosigning relationship usually means paying off the existing balance and closing the account.
Yes, a parent can cosign a credit card. In most cases, a cosigner is a close family member or friend. If you plan to have a parent cosign a credit card, it’s best to set expectations around spending in advance to avoid putting a strain on the relationship.
No, you cannot add a cosigner to an existing credit card. A cosigner is someone who helps you qualify and apply for a credit card by agreeing to take responsibility for the payments if you’re unable to pay. That said, you can add an authorized user to an existing credit card.
Being a cosigner can impact your credit score if the primary cardholder isn’t responsible with the credit card. If there are late or missed payments, they’ll be recorded on your credit reports, thereby negatively affecting your score.
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