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Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. SHARE: FG Trade/E+/Getty Images January 05, 2022 Checkmark Bankrate logo How is this page expert verified? At Bankrate, we take the accuracy of our content seriously. "Expert verified" means that our Financial Review Board thoroughly evaluated the article for accuracy and clarity. The Review Board comprises a panel of financial experts whose objective is to ensure that our content is always objective and balanced. Their reviews hold us accountable for publishing high-quality and trustworthy content. Margaret has written for Money Under 30, MoneyGeek, The Simple Dollar, CreditCards.com, Interest.com and Fiscal Tiger, among other publications. She writes about subjects including saving, credit, insurance, investing and other financial topics. Bankrate logo

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At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money. The content on this page is accurate as of the posting date; however, some of the offers mentioned may have expired. Terms apply to the offers listed on this page. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. Bankrate logo

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You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. If you’re looking to establish credit history, rebuild your credit or raise your score, being added to someone else’s credit card as an authorized user is a popular way to give your score a boost. In order to become an authorized user, you need a friend or family member to agree to add you as an authorized user on their credit card. Becoming an authorized user can help to improve your credit, but it also comes with added responsibility.

What is an authorized user

An authorized user is someone authorized to use another person’s credit account. When you become an authorized user, you receive a credit card that is connected to the primary cardholder’s line of credit. Any purchases you make on your card become part of the primary cardholder’s credit card balance and the primary cardholder is responsible for making on-time payments against that balance. Becoming an authorized user can help borrowers with poor credit or short credit history start building a positive credit history. It can also be a convenient way for families and members of the same household to streamline spending and payments.

Pros and cons of being an authorized user

Authorized users can use their credit card to make purchases. The card may also show up on their credit report and has the potential to help boost their score. It’s important to check whether or not the issuer will report data to the bureaus for the authorized user. Not all credit issuers report authorized users to the three credit bureaus, so your authorized user account might not become part of your credit history. However, in most cases, your authorized user account will show up on your report and affect your score. Here are some of the main benefits of becoming an authorized user: May improve your score: Helps to boost your credit score through a history of on-time payments and responsible borrowing. Convenient for families: Adding a partner or spouse, parent or can give them access to your line of credit and streamline family expenses. Boosted rewards potential: With multiple people spending on the same credit account, you can potentially rack up more . Free: There’s usually no additional charge to add an authorized user to an account. How significant the is on your credit depends on your current score and the primary cardholder’s borrowing behavior. For instance, if you have several late or missed payments on your credit report, being added as an authorized user to a card where the primary cardholder makes on-time payments each month could boost your score. Similarly, being added as an authorized user could help you to decrease your credit utilization and improve the age and mix of your accounts. However, there are some things that an authorized user can’t do. The authorized user cannot make changes to the account, like requesting a credit limit increase or adding other authorized users. When it comes to spending power, the primary cardholder can set a limit on the amount of money an authorized user is allowed to spend. The primary cardholder is also the only one responsible for paying off the balance on the card. Here are some of the cons of adding an authorized user, particularly for the primary cardholder: Could hurt cardholder’s credit: Adding an authorized user doesn’t necessarily negatively impact the cardholder’s credit, but it could hurt their score if an authorized user racks up a balance and isn’t able to pay it back. Could hurt authorized user’s credit: Likewise, the spending habits of the cardholder also reflect on an authorized user. Poor payment habits and unwise spending by the account holder could have a negative impact on an authorized user’s credit. Cardholder is responsible for the balance: Whatever the authorized user spends, the cardholder is responsible for paying back. Less control over spending: With two people using the same account to make purchases, balances can add up fast.

How to add an authorized user

The process to add an authorized user depends on the specific credit card. In some cases, the primary cardholder may be able to add an authorized user online or through their bank’s mobile app. In other cases, they may have to give the bank a call. It’s also possible to add an authorized user when you open a new credit card account. You’ll need to provide information including the user’s name, date of birth and Social Security number.

How to remove an authorized user

You can usually remove an authorized user online or over the phone. Once you complete the process, it’s a good idea to send your credit card issuer a certified letter confirming the agreement to remove the authorized user from your account. You should also collect the credit card from the authorized user to ensure they can no longer make charges against your credit account.

The bottom line

Becoming an authorized user is just one way to raise your credit score but it requires a certain level of trust from the primary cardholder on the account. The liability falls entirely on the primary cardholder because they are responsible for the payments at the end of each billing cycle. It is important to practice good financial habits as an authorized user. You should not go on a spending spree without a clear plan with the primary cardholder to pay off your balance on time and in full each month. SHARE: Margaret has written for Money Under 30, MoneyGeek, The Simple Dollar, CreditCards.com, Interest.com and Fiscal Tiger, among other publications. She writes about subjects including saving, credit, insurance, investing and other financial topics.

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