5 things to consider before sharing a credit card

For Mike Caligiuri and his fiancée, buying a home together inspired them to also share a credit card.

«We were going to pay the same mortgage, and we had many common expenses. So, just for administrative reasons, it made sense,” says Caligiuri, a certified financial planner and founder of Ohio-based financial planning firm Caligiuri Financial.

Though it sounds like it's more about logistics than romance, he acknowledges that love plays a role, too: "You want to show the other partner that you trust him or her, and one way to do that is through joint finances," he says. .

While many card issuers don't allow joint accounts or cosigners on credit cards, it's usually relatively easy to add someone as an authorized user, which is what Caligiuri and his fiancée did. (She added it to her existing card.)

If you are thinking of share a credit card With a loved one, addressing burning issues early—such as spending limits, who pays the bill, and what the rewards strategy is for starters—can help avoid disagreements later.

Here are five conversations to have before sharing a credit card with your partner:

1. What is your credit history?
If you have credit card debt or have had problems with it in the past, it's important to let your partner know before you start share a credit card to avoid surprises later, suggests AnnaMarie Mock, a CFP based in Wayne, New Jersey. "It's vital that both partners understand the severity and cost of credit card debt because it can become a huge financial burden," he says.

That conversation is not always easy. According to a recent NerdWallet survey, about 1 in 5 Americans have lied to a significant other about their credit card debt or the amount of the debt. Still, more than 2 in 5 believe it's important for a couple to discuss their credit scores before moving in together, and the vast majority of those who combine finances with their partner – 86% – say all married couples they should combine at least some of their finances.

2. Who is going to pay the bill?
If one partner is the primary cardholder and the other is the authorized user, then the primary cardholder is ultimately responsible for paying the account. Paying it off in full and on time each month means you can avoid paying interest and late fees. If you open a new credit card together, you can decide who will take on that role.

Caligiuri and his fiancée, for example, decided that she would still be responsible for paying off the card each month. (She tells Caligiuri how much to transfer to their joint checking account before making that payment.)

3. What type of expense should be discussed in advance?
While everyday expenses like coffee or groceries probably don't require detailed discussion, Mock suggests deciding what level of spending does.

For example, one person probably shouldn't spend a $500 plane ticket without first checking with the other person. Large purchases can strain your card's credit limit or make it difficult to pay your bill in full at the end of the month, which could result in interest charges.

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4. How will the problems be addressed?
If you have a larger-than-expected monthly bill racking up, or if you're hit with a late fee or two, it's a good idea to have a communication plan in place, says Taylor Venanzi, a CFP and owner of Activate Wealth, based in in Philly.

He suggests establishing regular meetings once a month to review the card, spending habits, and savings goals.

5. How will you share the rewards?
Credit card rewards can be part of an overall strategy to help finance vacations, and couples can rack up points faster if they share cards, says Eric Simonson, certified financial planner and owner of the firm Abundo Wealth, with headquarters in Minneapolis. If travel isn't on their plans, they can also use rewards to earn cash or points toward shopping or gift cards, among other options.