Authorized User on a Credit Card: How It Works and Builds Credit

Independent guide - not affiliated with or endorsed by any card issuer, credit bureau or scoring company. Rules on who can be added, minimum ages and whether authorized-user accounts are reported differ by issuer; check your issuer's official site before you add anyone.

An authorized user is someone the primary cardholder adds to their credit card account. The authorized user gets their own card and can spend on the account, but the primary cardholder is responsible for paying the bill. Because many issuers report the account to the credit bureaus in the authorized user's name too, it can help someone with little or no history start building credit.

It can also hurt, because the authorized user's report may reflect the primary cardholder's late payments or high balances. This guide explains how authorized-user status works, how it affects both people's credit, and how to add or remove someone safely. It is based on guidance from the CFPB and myFICO and applies to US cards.

Authorized user versus joint account holder

The CFPB explains that being an authorized user generally does not make you responsible for repaying the debt. That includes after the primary cardholder dies: an authorized user is generally not liable for the balance unless they were also a joint account holder or co-signer. Many issuers no longer offer joint card accounts, so authorized-user status is the most common way to share a card.

How being an authorized user can build credit

The CFPB says card issuers usually report authorized users' status to the credit bureaus, and your report can show that you are an authorized user on the account. When the account is reported on your file, it can add:

• Payment history. A record of on-time payments by the primary cardholder.
• Available credit. The account's credit limit, which can help your utilisation.
• Account age. Depending on how the issuer reports it, the history of an older account can appear on your report.

myFICO confirms that authorized-user accounts can appear on your credit report and affect your FICO Score, and that a well-managed account can help build a positive history. It also notes that in recent FICO Score versions, authorized-user accounts have less impact than accounts you hold yourself. In other words, it is a useful start, not a substitute for your own account.

For someone with no history at all, the most effective path is usually to combine the two: become an authorized user on a well-managed card and, when eligible, open a starter card in your own name. Our guide on how to build credit from scratch lays out that plan, and our no-credit-history rankings show starter options.

How it can hurt the authorized user

myFICO notes that if the primary cardholder misses payments or carries high utilisation, the account could negatively affect the authorized user's score. Before agreeing to be added, ask the primary cardholder whether they pay in full and on time. If the account later goes into trouble, you can ask to be removed. myFICO says the account will then be removed from your credit report.

What it means for the primary cardholder

• You are responsible for every charge the authorized user makes, so only add someone you trust.
• Their spending raises your balance and your utilisation, which affects your score, not just theirs.
• You control the relationship. Many issuers let you set a lower spending limit for an authorized user, receive alerts on their purchases, or lock their card.
• Fees can apply. Some cards charge for additional cards; check your card's pricing table.
• Rewards usually pool to the primary account. Check your card's terms for how authorized-user spending earns points or cash back.

Who can be an authorized user?

Issuers set their own rules. Many have a minimum age, and some have none; some ask for the authorized user's Social Security number or date of birth so they can report the account. Parents often add teenagers so the child starts a credit file early, and couples often add each other. Check your issuer's official site for its current requirements before you ask for a card to be issued.

How to add an authorized user

1. Confirm that your issuer reports authorized users to all three credit bureaus if credit building is the goal.
2. Collect the details the issuer asks for, usually name and date of birth, sometimes a Social Security number.
3. Add the person in the issuer's app or online account.
4. Set a spending limit and alerts if the issuer offers them.
5. Agree house rules: what the card is for, and who pays for what.
6. After a couple of statement cycles, the authorized user can check their credit reports to see if the account appears.

How to remove an authorized user

The CFPB suggests contacting your issuer's customer service and asking for the authorized user to be removed. It also suggests asking whether you should get a new card number, which may be wise if the authorized user knows your card details. An authorized user can usually ask the issuer to remove them as well. Once removed, the account typically drops off the authorized user's credit report, which can change their score, especially if it was their oldest or only account.

Common questions people get wrong

• "Paying to be added to a stranger's card is a shortcut." Selling authorized-user spots, sometimes called tradeline renting, is risky. Lenders may discount these accounts, and you have no control over how the stranger manages the card.
• "An authorized user's spending is their own debt." Generally it is not; the primary cardholder owes it.
• "Every scoring model treats authorized users the same way." It depends on the model and version, and on how the issuer reports the account. Some lenders, particularly for mortgages, may look past authorized-user accounts when underwriting.

If you later want to close the account entirely rather than remove a user, read our guide on whether it is bad to close a credit card first.

Sources

• CFPB: How do I remove an authorized user from my credit card account?
• CFPB: Am I liable for a deceased relative's card debt as an authorized user?
• myFICO: How do authorized user accounts impact the FICO Score?
• CFPB: Understand your credit score