Question 1

What does it mean to be an authorized user on a credit card?

Accepted Answer

As an authorized user on a credit card, you have access to the primary cardmember's credit limit. Authorized users may receive a card in their name that they can use to make purchases. Your purchases could also earn credit card rewards for the primary cardmember. A credit card account with an authorized user isn't the same thing as a joint credit card account. Unlike a cardmember on a joint account, an authorized user doesn't manage the account or pay the credit card bill. The primary cardmember adds the authorized user to the account, usually without an application or credit check.

Question 2

What are an authorized user's responsibilities?

Accepted Answer

As an authorized credit card user, you can use the card normally to make purchases. However, you don't have the authority to change the account information—only the primary account holder can do that. Authorized users don't have to make credit card payments or pay an annual fee. Paying bills and managing the account are the primary cardmember's responsibilities. While authorized users aren't responsible for late fees or other penalties, you should still practice healthy credit habits and minimize credit card debt. That way, both account users can benefit and avoid bad credit consequences.

Question 3

Do authorized users build credit?

Accepted Answer

Authorized users can build credit as long as the credit card issuer reports activity to a major credit bureau. Authorized users can often build credit even if they don't use their credit card. Typically, the primary cardmember's activity and the authorized user's activity appear on both users' credit reports, affecting both credit scores. It's a good idea to check with your credit card issuer and the credit bureaus that your card issuer reports to. Find out their protocol for reporting about authorized users so you know what to expect since it can vary from one credit card company or credit bureau to another.

Question 4

How does being an authorized user impact your credit score?

Accepted Answer

The impact that becoming an authorized user has on your credit score depends on the way you and the primary cardholder manage the account. That means both users should practice good credit habits. Late and missed credit card payments may stay on your credit report for years and seriously damage your credit score. As an authorized user, you're not responsible for making credit card payments directly. But if the primary cardholder misses a payment, you'll still face the negative credit consequence. So, it's important to make sure the primary cardmember typically manages payments responsibly. You should also be sure to uphold any agreements you've made about paying a portion of the bill. You should also avoid overspending. Racking up expensive charge after expensive charge may do more than just frustrate the person who has to foot the credit card bill. A high balance can also hurt both of your credit scores by increasing your credit utilization ratio, the sum of all your outstanding credit card balances compared to your overall available credit. Whenever possible, you and the primary account holder should try to repay your balance in full to maintain a low credit utilization ratio and help your scores.

Question 5

How long does it take to build credit as an authorized user?

Accepted Answer

The amount of time it may take you to build credit as an authorized user depends on your situation. If you're establishing a credit score for the first time, you can expect it to take several months of consistent, responsible credit activity before you have a credit score. But if you're starting out with a poor credit score and working to improve it, the process may take longer. While you may be eager to improve your score, patience and consistency are key.

Question 6

How old do you have to be to become an authorized user?

Accepted Answer

Credit card companies have their own rules about who can be an authorized user. Card Issuers don’t always set an age requirement, but some existing limits are 13, 15 and 18 years old.

Can You Build Credit as an Authorized User on a Credit Card?

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