Credit card companies will often allow you to get a second card for another cardholder on your account. The additional credit card might be used by a spouse where the partners have joint finances. You might also consider giving the additional card to your child while they’re in school, allowing them to use a credit card (but with your supervision on the account). Is it really a good idea to have an additional cardholder though?

Here are some of the downsides of additional cardholders, which you may want to consider before asking for that second credit card:

1. If the additional cardholder racks up debt, you will still be held responsible.

If your additional cardholder suddenly loses their job and can’t afford to pay their portion of the credit card bill anymore, as the primary cardholder that burden falls on you. This is an important consideration before giving your child your additional credit card. If you’re not prepared to bail them out in a worst case scenario, their irresponsible spending could damage your credit history.

2. If an additional cardholder runs up the balance, you won’t have as much available credit.

If you have an additional cardholder who doesn’t pay off their charges in full, you’ll have a lower available credit limit to work with personally. That means you won’t have as much available for emergency funding or large purchases that you may want to finance.

3. An additional cardholder can cost you money in interest payments.

Your card’s interest free days generally only apply if the balance is paid off in full each statement period. That means even if you normally pay off your own charges monthly, you may not get interest free days the following month if your additional cardholder doesn’t also pay off their portion of the balance in full. In other words, your future charges may be subjected to high interest rates.

4. Additional cardholders can equal higher annual fees.

Many credit cards offering additional cards charge additional annual fees as well. To avoid paying higher annual fees than necessary, look for a low fee card which lets you add cardholders at no additional cost. For example, the ANZ Low Rate MasterCard allows you to add three extra cardholders with no fee.

Setting up an additional cardholder on your credit card account can be convenient when you want to consolidate finances. Just remember that as the primary account holder, you’ll potentially take on added risks and expenses. Talk to your credit card company to find out exactly what you’ll be liable for and how much an additional credit card on your account will cost, as policies will vary from one credit card company to the next.