In the past, applying for a credit card with a co-signer—someone who agrees to share responsibility for the card’s charges—was a common strategy to increase your chances of approval. However, most major credit card issuers have phased out co-signer options, meaning you can no longer use a co-signer to build a positive credit history.

That said, some credit cards, like the Apple Card*, offer the option to create a joint credit account with another person. Joint accounts are co-owned by both individuals, unlike co-signed accounts where the co-signer merely guarantees the account but doesn’t have ownership.

Here’s what you need to know about co-signers, joint credit cards, and other ways to build your credit quickly.

What credit cards allow a co-signer?

The major credit card issuers we contacted, including American Express, Bank of America, Capital One, Chase, Citi, Discover, and Wells Fargo, no longer offer co-signer options.

If you’re interested in finding a co-signer option, you may have better luck with smaller credit unions or regional banks. If you choose this route, there are a few important considerations to keep in mind.

What to know before you co-sign a credit card

It might seem straightforward: sign your name, and a friend or family member gets access to credit. However, co-signing isn’t as simple as it sounds. John Ulzheimer, a nationally recognized credit expert who has worked with FICO and Equifax, warns that “co-signing is probably the worst thing you can do” financially.

Complaints and lawsuits from co-signers suggest that it’s also one of the least understood arrangements. Co-signers often don’t realize that they are fully responsible for the new card debt. Additionally, co-signing can strain personal relationships. With potential personal and financial complications, Ulzheimer notes that the risks often outweigh the benefits of co-signing.

1. You are responsible for all charges made on the card

What does it mean to be a co-signer? When you agree to co-sign for a credit card, you’re essentially telling the credit card issuer, “If anything goes wrong, I will cover the entire balance, including interest and any penalty fees.”

Many people mistakenly believe that co-signing is similar to acting as a reference, but that’s not the case. Co-signing means you are taking joint responsibility for the credit account, making you legally liable for all charges made on the card.

By co-signing, you’re vouching for the applicant’s ability to manage credit, usually because the lender has determined that the applicant’s credit history and financial information do not meet their standards.

Before agreeing to co-sign, John Ulzheimer suggests asking the applicant why they need a co-signer. If their credit is poor, they may be a higher credit risk, meaning you could end up responsible for unpaid bills. If their income is insufficient to qualify for the card, it might indicate they struggle to manage their current financial obligations. Additionally, if the person is under 21, they might face difficulties obtaining credit due to limited income, making it harder for them to handle a new credit card.

2. The extra debt could affect your ability to get new credit

Are you considering buying a home or taking out a large loan? Before assessing your eligibility and interest rate, lenders will review your total debt, including any co-signed accounts.

Barry Paperno, a credit scoring expert formerly with FICO and Experian, explains that a co-signed account affects your credit score just as if it were solely under your name. To creditors, the account is yours.

Since each consumer has a limit to how much debt they can manage, a co-signed account that increases your total debt could push you into a higher risk category. This might result in higher interest rates on your existing credit cards and future loans, or even a denial of your next credit card application.

3. Your credit score could go down

Does co-signing a credit card affect your credit? Yes, it can. Co-signing may lower your credit score and potentially cause long-term damage to your credit history.

Here’s why:

  • Credit Utilization Ratio: Credit-scoring models consider your credit utilization ratio, which is the ratio of your current balances to your available credit. This factor accounts for 30% of your FICO score. High utilization on a co-signed account, even if the primary cardholder makes timely payments, can negatively impact your score.
  • Payment History: If the person you co-signed for misses payments or makes late payments, those negative marks will appear on your credit report as well. Creditors view the account as yours, so you’re equally responsible for any negative reporting or collection actions. Since derogatory marks can stay on your credit report for up to a decade, co-signing can be riskier than you might think.

4. The account holder could increase the credit limit without your consent

The Credit Card Accountability, Responsibility, and Disclosure Act (Credit CARD Act) requires that a co-signer must provide written consent for any credit limit increases while the cardholder is under 21, according to Chi Chi Wu, senior attorney at the National Consumer Law Center.

Once the cardholder turns 21, however, there is no federal requirement for notifying the co-signer of credit line increases, Wu explains.

For instance, a parent might co-sign a credit card for their child heading to college, expecting that they can easily cover any small charges if necessary. But if the child keeps the card open after turning 21 and increases the credit limit, the resulting bill could be much higher than the parents anticipated.

5. If you want out, you might have to close the credit card

Do you want to be responsible for your friend or relative’s credit card bill indefinitely? If not, you’ll need a plan for how to exit the co-signing arrangement.

Typically, ending a co-signed credit card account involves closing the account, says Nessa Feddis, senior vice president at the American Bankers Association.

Closing a credit card account can be complicated, and a co-signed account adds another layer of complexity. Depending on the terms of the contract and state laws, you may require the cardholder’s cooperation, Feddis notes. It’s not always as simple as just notifying the credit issuer of your desire to exit.

Additionally, any unpaid debts from the co-signed account remain your responsibility even after the account is closed. Until these debts are settled, they are still your financial obligation.

Before co-signing, contact the credit card issuer to understand your options for ending the co-signing relationship, Feddis advises. Find out if you need to close the account and whether you require the account holder’s consent.

Also, inquire about your rights as a co-signer, including access to account information. Can you check the account status and balance? Will you be informed of changes to the credit limit or interest rates? Will you be notified of late payments or potential default?

Understanding these details will help you manage the situation if issues arise after you co-sign.

Alternatives to finding a co-signer

Since most credit issuers no longer offer credit cards with co-signers, you’ll need to explore other methods to access credit.

If you have poor credit or a limited credit history and may not qualify for top credit cards, consider these alternative strategies to build your credit without a co-signer.

Become an authorized user

One effective way to quickly build credit is by becoming an authorized user on someone else’s credit card. As an authorized user, you gain permission to make purchases on the account, but the account owner remains responsible for all payments and any incurred debt.

Most credit card issuers report authorized user accounts to the major credit bureaus—Experian, Equifax, and TransUnion. This means that each on-time payment made by the account owner positively impacts your credit report, helping to boost your credit score.

Becoming an authorized user is a convenient way to benefit from someone else’s good credit history, especially useful if you’re a student or young adult who isn’t yet eligible for your own credit card.

Apply for a joint credit card

In some situations, you might consider applying for a joint credit card. Joint credit cards are issued to two people (such as spouses), who both have access to use the card and are legally responsible for any debt incurred. All activity on the card is reported to both cardholders’ credit reports. If both users manage the account responsibly, it can positively impact both credit scores. Conversely, poor account management by either cardholder can negatively affect both scores.

Joint accounts carry similar risks to co-signed accounts, so it’s important to weigh the decision carefully. If you and the other applicant have significantly different credit scores, the higher score may not fully compensate for the lower one, potentially leading to a denied application.

Few credit cards, like the Apple Card, offer joint accounts. If you choose to become a joint cardholder, be prepared to share full responsibility for the account and ensure timely payments are made, regardless of who makes them.

Apply for a secured credit card

If you prefer to apply for a credit line independently, without becoming an authorized user or seeking a joint credit card, a secured credit card might be a good option. Secured credit cards require a small security deposit, which typically corresponds to a modest credit limit. This setup allows you to demonstrate your ability to manage credit responsibly.

After you’ve shown that you can make timely payments and handle your credit responsibly, most issuers will return your security deposit and transition you to an unsecured credit card. Secured credit cards can also offer rewards, such as cash back, but their primary purpose is to help you build your credit through responsible use.

Consider credit cards for people with limited credit

Looking for more choices? Check out our lists of the best credit cards for those with bad credit and for those with no credit history.

While many options are secured credit cards, we also feature unsecured cards designed for individuals with fair credit. For example, the Petal® 1 “No Annual Fee” Visa® Credit Card* evaluates factors like income and bill payment history to determine eligibility, offers cash back rewards on select purchases, and allows for a credit limit increase after six months of responsible card use.

In Conclusion

Although most major credit card issuers no longer offer credit cards with co-signers, you can still build credit with a low credit score or limited credit history.

Consider becoming an authorized user, applying for a secured credit card, or exploring credit cards specifically designed to help build credit. Once you have a credit line, practicing responsible credit habits is crucial to establishing a positive credit history and improving your credit score.