In what seems to be a growing trend throughout the credit card industry, Chase bank will no longer being accepting applications for joint credit cards. According to a report by CNN Money, this move will simplify the card issuer's offers.
Chase will still allow, as most card companies do, a card holder to add an authorized user to their account, but the difference is unlike a joint account where both parties are on the hook for all debts accrued, an authorized user is not responsible for anything they charge onto the card, only the primary user is.
But all in all, this is basically a move for credit card companies to simplify things for themselves and dodge hassle from regulators.
Last year, the Consumer Financial Protection Bureau announced that issuers are no longer able to deny credit card applicants based on their income -- a move that mainly benefits spouses or partners who aren't bringing in any income like stay-at-home parents.
Since regulators want to make sure card issuers aren't requiring one-income couples to apply for joint accounts, simply phasing out these accounts altogether may help issuers avoid suspicion from examiners, said Feddis. Plus, now that people without income should be able to qualify for a credit card, there will likely be less need for joint accounts.
This isn't the first card company to pull this move, and most certainly not the last. Capital One and more recently HSBC both got rid of their joint programs while TD Bank and American Express never had them to begin with.
So where can consumers go if a joint credit card is still something they want to explore? Both Bank of America, Wells Fargo and U.S. Bank all still offer these types of cards, a long with Discover.
