Credit Card Authorized User: Everything You Need to Know

An authorized user on a credit card is someone who’s been added to another person’s account and can make purchases using that line of credit. The account owner, or primary cardholder, is responsible for all payments, regardless of who made the purchase.

When you become an authorized user, you’ll receive your own card connected to the primary cardholder’s line of credit. You can piggyback off their credit card activity without applying for your own card or undergoing a credit check.

How being an authorized user works

Once you’re added as an authorized user, the card issuer will send you a physical card with your name on it. Here’s what you need to know about how being an authorized user works:

• You can make purchases: Use the card anywhere the issuer is accepted, just like the primary cardholder would.
• You can’t make account changes: Only the primary cardholder can request a credit limit increase, add users, or modify account settings.
• You’re not responsible for payments: The primary cardholder is legally obligated to pay off all balances, regardless of who made the purchases.

Who can be an authorized user?

Almost anyone can be an authorized user, including family members, friends, or partners. Some credit card issuers do have minimum age requirements. These typically range from 13 to 18 years old. 

You generally don’t need a credit check to become an authorized user. Some issuers may charge a fee for adding an authorized user, so check with your card company about its specific policies.

Becoming an authorized user on a credit card could be a relatively quick way to start building credit for those with poor credit or no credit history. It can also be a convenient way for families and members of the same household to simplify and co-manage finances.

Here’s the good news: you don’t even need to use the card to benefit from it. As long as the card issuer reports to the three major credit bureaus (Experian, Equifax, and TransUnion), your score could increase based on the primary cardholder’s payment history and credit utilization.

However, if your authorized user status doesn’t show up on your credit reports, it won’t help your score.

Can being an authorized user hurt your credit?

As long as the primary account holder is responsible, makes on-time payments, and has low credit utilization (the amount of their available credit they use), your score should see a boost. However, any negative account information can damage an authorized user’s credit score.

If the primary cardholder falls behind on payments or maxes out the card, it can hurt both of your credit scores. Only become an authorized user on a credit card if you and the account holder are on the same page and committed to practicing healthy financial habits.

Does an authorized user build credit? It’s possible and can be one of the main perks.

An authorized user’s credit score can improve if the primary cardholder pays bills on time and uses the card responsibly.

Can being an authorized user hurt your credit?

It’s essential that the primary account holder is responsible, makes on-time payments, and has a low credit utilization (the amount of the credit limit in use). Any negative account information can also damage an authorized user’s credit score.

If the primary cardholder falls behind on payments or maxes out the card, it can hurt both of your credit scores. Only become an authorized user on a credit card if you and the account holder are on the same page and committed to practicing healthy financial habits.

Before you get added to someone’s card, you need to know exactly what you’re signing up for. As an authorized user, you generally aren’t legally responsible for paying the credit card bill – that falls on the primary cardholder.

However, you’re being trusted with someone else’s line of credit. Here’s what that means for your responsibilities:

• Respect spending boundaries: Agree on spending limits with the primary cardholder and stick to them.
• Reimburse your purchases: Even though you’re not legally liable, work out how you’ll pay the primary cardholder back for what you spend.
• Communicate openly: Keep the primary cardholder informed about your purchases to avoid surprises on their bill

Keep in mind that you can’t make account changes, such as requesting a credit limit increase, disputing charges, or adding other users. Those decisions stay with the primary cardholder.

Before agreeing to become an authorized user on a credit card, consider the advantages and disadvantages of doing so:

Becoming an authorized user is straightforward. Here’s how to do it:

1. Ask someone you trust: Reach out to a financially responsible friend or family member and ask them to add you to their account.
2. They contact their card issuer: The primary cardholder will need to contact their bank or card issuer to request that you be added. This can usually be done online, through their mobile app, or by phone.
3. Provide basic information: You’ll need to share your name, date of birth, Social Security number, and contact information. There’s usually no credit check required.
4. Confirm reporting status: Before moving forward, ask the primary cardholder to verify with their card issuer that authorized user activity gets reported to the credit bureaus. Not all issuers report this information.

Once approved, you’ll receive a credit card in your name, connected to the primary cardholder’s account.

If you’ve built up your credit and no longer need the account, or if your relationship with the primary cardholder has changed, you can remove yourself as an authorized user by following these steps:

1. Contact the card issuer: Call the number on the back of the card, go online, or use the issuer’s mobile app to request removal.
2. Follow up in writing: If you make the request by phone, send a letter referencing the call details and the last four digits of the account for confirmation.
3. Wait for approval: Depending on the issuer’s policy, they may or may not approve your removal request.

Before removing yourself as an authorized user, remember:

• The primary cardholder may need to approve the removal of the authorized user.
• Once removed, you can no longer use the card or redeem rewards.
• If this account is used for automatic payments, you’ll need to update your account to avoid declines.
• Your credit may take a hit if this account was your only source of credit history.

Becoming an authorized user is a fantastic stepping stone, but it’s usually not the final destination. Use this opportunity to build a solid credit history while you practice good financial habits. Keep an eye on your credit score to see how it improves over time.

Once you’ve established a stronger credit profile, you’ll be in a better position to apply for a credit card of your own. This is a major milestone that puts you fully in control of your financial future.

To ensure you are fully prepared for that process, read our step-by-step guide on how to apply for a credit card.