How Does a Joint Credit Card Work in Canada?

Imagine having a pie where everyone can cut themselves a piece anytime they want. Each cardholder has equal access to the credit limit. If you have a $5,000 limit, this means one person can spend all $5,000 or both can split it. The catch? Both individuals are equally responsible for repaying whatever is spent.

Each person is issued their own card with a unique 16-digit number linked to the shared account. Every charge adds to the balance owing – which all parties are legally responsible for repaying. Because the account is shared, joint credit card holders also have equal access to:

• Checking the balance

• Viewing transactions

• Accessing monthly statements

• Tracking rewards like cash back, points, or miles

Joint credit card holders also have equal authority, legal obligations, and risks such as:

Make Changes

Either party can typically make changes to the account. This means both individuals can request things like credit limit increases, address changes, etc.

Debt Management

Both parties are equally liable for the debt. If one person fails to pay, the other cardholder is still legally bound to repay the debt.

Impact On Credit Score

The actions on the card impact the credit scores of both parties. If one person behaves irresponsibly, like maxing out the card or missing payments, both individuals’ scores will be affected. The opposite is also true. Responsible use, like paying the balance off each month, can have a positive impact on both individual’s credit scores.

Earn & Redeem Rewards

Much like solo credit cards, joint credit cards often come with perks and rewards. For example, the BMO Air Miles World Elite Mastercard allows cardholders to rack up Air Miles points. Likewise, the Scotia Momentum Visa Infinite Card offers cashback and the Scotiabank Scene+ Visa Card rewards users via Scene+ points. Primary and secondary cardholders are able to redeem credit card rewards, but authorized users generally cannot do so.

What Is the Difference Between a Joint Credit Card and an Authorized User?

Let’s clear some fog here. An authorized user and a joint credit card holder are not the same thing. An authorized user is someone who’s allowed to use another person’s credit card account but is not legally responsible for the bill. Think of it as giving someone a VIP pass to a hockey game—you’re letting them in, but they aren’t the ones who bought the ticket. They have no skin in the game (or on the ice).

How to Apply For a Joint Credit Card

If you and another person would like to be listed equally on the credit card account, your best option is to apply for a new credit card as co-borrowers by submitting a joint application. Remember, when you apply for a joint credit card, both applicants will undergo a credit check. This can temporarily impact each person’s credit score. Here’s how to apply for a joint credit card:

1. Research & Choose the Right Card

Begin by determining why you want a joint credit card. Is it for earning rewards, consolidating debt, or maybe for building credit?

Compare credit cards based on interest rates, annual fees, rewards programs, and other perks. Then narrow down your list by looking for cards specifically designed for joint accounts or those that allow joint account holders.

2. Check Eligibility Requirements

Most credit card issuers in Canada require applicants to be at least the age of majority in their province or territory (18 in some places, 19 in others). Some credit cards, like those with premium rewards, require a minimum amount of annual personal or household income to qualify. You might need to provide proof of income or employment.

3. Gather Necessary Documentation

The application will require personal information from you and your co-applicant such as full name, date of birth, Social Insurance Number (optional but can expedite the process), address and contact information, etc. You may also be asked to provide:

• Employment Information: Employer’s name, position, and duration of employment.

• Financial Information: Personal income, household income, and monthly housing costs.

4. Visit the Credit Card Issuer’s Website or Branch

Most credit cards in Canada are issued by banks and credit unions. If you apply for a joint credit card from a financial institution, you typically have the option to apply online or in person at a physical branch. However, cards like CapitalOne and American Express do not have physical locations, so you will need to apply online.

Online: Most major banks and credit card issuers in Canada offer online applications. Fill out the application form, and make sure both applicants’ details are accurately entered.

In-Person: If you’re more comfortable applying in person or have questions, visit your credit card issuer’s local branch, like a bank or credit union.

5. Complete the Application Form

Designate both individuals as co-applicants. Ensure all details are accurate to avoid processing delays or rejections.

6. Wait for a Response

Once submitted, the credit card issuer will review the application. This involves a hard credit check for both applicants. You’ll typically receive a response within a few minutes if applying online, but it can take longer, especially if further review is needed.

7. Understand the Terms & Conditions

If approved, go through the cardholder agreement. Understand interest rates, fees, grace periods, and any other terms associated with the card. Both co-applicants should be clear on the terms and their responsibilities.

Top 3 Credit Cards Offering Free Secondary Cards For Authorized Users

Looking for free secondary cards for authorized users? For families, couples, or partners wanting to consolidate spending without the hassle of additional fees, these cards present an attractive solution. Here are the top credit cards that generously extend this benefit, making shared finances and earning rewards a tad simpler (and cheaper):

1. Tangerine World Mastercard

The Tangerine World Mastercard is an excellent no-fee cash back card that provides free additional cards for authorized users. You’ll earn 2% cash back on up to 3 purchase categories of your choice, and 0.5% cash back on everything else. Additional card perks include, but are not limited to: free Boingo WiFi access, mobile device insurance, discounted access to airport lounges with a complimentary DragonPass, and more.

2. Scotiabank Scene Visa Card

The Scotiabank Scene Visa Card is beloved for its flexible points program and offers free additional cards for authorized users. You’ll earn 2 Scene+ Points per dollar spent at partner grocery stores, Home Hardware, and Cineplex entertainment. All other card purchases earn 1 point per dollar. You also get a 25% discount on select car rentals at participating AVIS and Budget locations.

3. BMO CashBack Mastercard

The BMO CashBack Mastercard is another rewards card that offers free additional cards for authorized users. This card gives you 3% cash back on groceries, 1% on recurring bill payments, and 0.5% on everything else. Additional card perks include Purchase Protection, Extended Warranty Coverage, 25% off select car rentals at participating National Car Rental and Alamo Rent a Car locations, and discounts on select Cirque du Soleil and resident Las Vegas Shows.

This article is the shortened version of an article originally published on Hardbacon.ca by Heidi Unrau under the title "All About Joint Credit Cards in Canada".