Pros and Cons of Being an Authorized User on a Credit Card
- An authorized user is someone who has been added to a credit card account by the card’s primary cardholder. They can make purchases with the card as if it were their own, but making payments and managing the account falls on the primary cardholder.
- Being an authorized user can be a great way to quickly establish a credit history. Many issuers will report the full history for the account to your credit report.
- Becoming an authorized user also comes with its own risks because the primary cardholder has full control and responsibility over the account. If the primary cardholder misses a payment, it will negatively impact your credit score.
What is an authorized user on a credit card?
An authorized user is someone who is added as a user to a credit card account, who can use the credit card as if it were their own. Many credit card issuers allow you to add a secondary account holder to your credit card. They are “authorized” to make purchases with your credit card. However, they have no legal responsibility toward the debt. Authorized users also gain access to most of the credit card’s benefits, such as airport lounge access, rental car protection, purchase protection and other perks.
While authorized users receive their own credit card, they don’t have the same permissions as the primary account holder. For example, authorized users typically cannot redeem rewards, request a credit line increase, close the account or add another authorized user. However, depending on the issuer, they may be able to obtain the account balance, request statement copies and make payments.
How is an authorized user different from a joint cardholder?
Both joint credit card holders and authorized users share an account with a family member or friend. Both can make purchases and use the accounts to build credit. But, there are a few key differences:
- With a joint credit card, both cardholders are responsible for any charges made on the account. This is different from an authorized user where only the primary cardholder is responsible.
- There are very few credit card issuers that offer joint credit cards. Most issuers allow you to add an authorized user to an account.
- Joint credit cards require both cardholders to do a credit check. You can add an authorized user to an account without a credit check.
- A joint cardholder can only be removed with an issuer’s permission. Authorized users can be removed at any time by the primary cardholder.
Learn more about joint credit cards.
Authorized user vs. joint credit card vs. cosigner
| Authorized user | Joint cardholder | Cosigner | |
|---|---|---|---|
| Who is responsible for the debt? | Primary cardholder | Both cardholders | Both the primary borrower and the cosigner |
| Credit check required? | No | Yes, for both cardholders | Yes, for both the primary borrower and the cosigner |
| Can you remove the additional user? | Yes, at any time | Not without the lender’s permission | Not without the lender’s permission |
Pros of becoming an authorized user
You’ll get easy access to a credit card
Once the primary cardholder adds you to their account as an authorized user, you’ll have immediate access to the credit card without a credit inquiry or needing to qualify for a new account. You’ll get your own card to use in the mail with your name on it typically at no additional cost. This is a great way to get your first credit card if you don’t have any credit history or improve your credit while avoiding a credit check.
You can build credit quickly
Becoming an authorized user on an account is an excellent way to build credit. But it requires responsible credit use on the primary cardholder’s end. If the primary cardholder makes on-time payments and keeps credit utilization low, this will appear on your credit history and improve your credit score over time.
Learn more about how to build credit with a credit card.
A credit utilization ratio is the amount of debt you’re carrying in relation to how much you can borrow. It’s best to keep this number below 30% because it makes up the second largest amount of your overall credit score (30%). Payment history makes up the largest amount of your credit score at 35%.
Don’t know your credit score? Sign up at LendingTree Spring to get your free credit score and recommendations to boost your score.
You can track family spending and earn rewards in a single account
Becoming an authorized user is an easy way to combine accounts as a family. You can manage all family expenses through a single account or multiple accounts. This makes it easier to track payments and help maintain a good credit score.
Having several people use a credit card can also accelerate your rewards earnings. Many rewards credit cards offer rewards on purchases made by the card’s authorized user. This can help offset significant family expenses, such as home projects or vacations. However, keep in mind that only the primary cardholder can redeem these rewards.
See all rewards credit cards.
Share a business account with employees
Becoming an authorized user on a business account is an easy way for an employer to share an account with employees. Authorized users can make purchases on behalf of the business. This sometimes comes at no additional charge for the business.
For example, the Capital One Spark Classic for Business card offers free employee cards. As an authorized user on this card, you can track your own spending and monitor account activity, but you won’t be able to see all of the business account details.
Why I’m an authorized user
“When I got married, my husband and I added each other as authorized users on all of our existing credit cards. You can do this right in the issuer portal, making it quick and easy. Our credit card issuers all sent us the duplicate cards with our names on them right away. We found this to be the easiest way to combine our credit card accounts. It’s nice for both of us to have our own cards under the same account. We’ve also been able to rack up rewards much quicker.”
LendingTree credit cards writer
Cons of becoming an authorized user
The primary cardholder has full control and responsibility over the account
The primary account holder is ultimately responsible for repaying all charges made with the credit card. So if you charge a substantial amount and struggle to pay your portion of the bill, the primary cardholder will have to cover it. Because you aren’t an account owner, the primary cardholder can also remove you anytime without having to make you aware of the removal.
You risk hurting your credit if the primary cardholder has irresponsible credit use
If the primary cardholder has financial issues, such as late payments, a charge-off or a bankruptcy, it could appear on your credit report as well. Any of these negative items could lower your score and make it harder to graduate to your own credit card in the future. Before deciding to become an authorized user, make sure the card owner has a history of responsible credit use.
You can’t earn your own rewards
Although your spending on the card will earn rewards, the primary cardholder will get the rewards you earn. If this is a card that you share as a family, this may not matter because you can pool your points together. But, if you want to earn your own rewards you may consider opening your own card.
If you have poor or limited credit but would rather open your own card, see our top credit cards for bad credit or top credit cards for beginners.
There may be an extra fee to become an authorized user
In most cases, there’s no cost to add an authorized user to your credit card. This is especially true if you have a no-annual-fee credit card. However, some premium cards charge a fee of $75 or more to add an authorized user. For example, the American Express Platinum Card® charges $195 for each authorized user (see rates & fees). Contact your credit card issuer or check your card agreement to see if there are authorized user fees before adding or becoming an authorized user.
How to add an authorized user to a credit card
The exact process to add an authorized user varies among card issuers, but they generally follow the same procedures. Here’s how to add an authorized user to a credit card:
-
Find someone willing to add you as an authorized user.
Discuss how you’ll use the card and how you’ll make payments. Also, learn what benefits it offers and if there’s a fee for adding you. -
Provide your full name and date of birth to the primary cardholder.
Some card issuers also require a Social Security number, so be prepared to provide that if necessary. -
Contact the card issuer.
The primary cardholder will then contact the credit card company to add you as an authorized user. This can be done via online banking, your issuer’s mobile app or by calling your issuer. -
The card issuer mails your new card.
Depending on their process, the new card may be mailed to the primary cardholder or directly to you. -
Activate the card when it arrives.
Most card issuers allow you to register the card online or over the phone. -
Create your online profile.
This allows you to monitor transactions and make payments. -
Start using the card.
You can use it for everyday purchases or save it for emergencies.
Depending on the card issuer, you may have a spending limit lower than the card’s credit line or you may have access to the entire credit limit. Before you start spending, talk to the primary cardholder about your available credit limit and how you’ll use the card.
Removing an authorized user is just as easy as adding an authorized user in most cases. You’ll log into your account and select the user you want to remove. You can also call your credit card issuer for assistance. If you’re the primary cardholder, it’s a good idea to change your credit card number if you no longer want an authorized user to have access to your card.
If your primary cardholder isn’t using the account responsibly and you want to remove yourself as an authorized user, you can also do so online, by app or over the phone.
How many authorized users can be on a credit card?
The number of authorized users you’re allowed to add to your card varies depending on the issuer. For example, USAA states that you can have up to 10 authorized users. Each one must be on your profile before they can get a credit card.
What’s the minimum age to be an authorized user?
There may be a minimum age requirement to be an authorized user depending on the credit card issuer. According to Experian, this is typically between 13 and 18. For example, American Express and U.S. Bank require you to be 13 to be an authorized user, Discover requires you to be 15 and Wells Fargo requires you to be 18. You must be 18 or older to get a credit card of your own.
Which credit card companies report authorized users to the three credit bureaus?
You can only build credit as an authorized user if the credit card issuer reports your account to the three major credit bureaus (Equifax, Experian and TransUnion). These bureaus gather and report information on your credit history and use that information to generate your credit score. Most major issuers do report authorized users, but it’s a good idea to confirm with your issuer. Here is a list of issuers that report authorized users:
Alternatives to adding an authorized user
Secured credit card
Secured credit cards are designed for individuals 18 or older with limited or poor credit history. These cards typically report to the three major credit bureaus (Experian, Equifax and TransUnion) and require a security deposit — which serves as a line of credit. In most cases, you can get your security deposit back if you pay off your balance in full and close your account or transition to an unsecured card.
See our top picks for secured credit cards.
Student credit card
Similar to secured cards, student cards are designed for individuals with little or no credit, but they don’t require a security deposit. Student cards also typically offer rewards. The student will have to be at least 18 to apply, and the application will ask to list a source of income.
See our top picks for student credit cards.
Joint account holder
Adding the individual as a joint account holder is another option. This means you and the joint account holder will share the card’s credit limit as well as legal responsibility for paying the bill.
Found a card you’re interested in? Learn more about how to apply for a credit card.
Frequently asked questions
No. As an authorized user, you have permission to use the credit card, but you are not responsible for repaying the debt. Additionally, if the card goes to collection, a debt collector can’t force you to pay the balance. However, if you spend too much and cannot repay the balance, the primary cardholder may attempt to collect money from you.
No. Although the authorized user is approved to make purchases, they do not have full access to the credit card account. If the main account holder opts to close the account, the authorized user will need to open a new account on their own.
Yes, an authorized user can apply for the same credit card if they meet the card’s credit and income requirements. Many authorized users eventually apply for their own credit card once their credit score has improved enough to qualify. This allows them to earn the welcome bonus, receive rewards on their purchases and enjoy all of the card’s benefits.
As with any credit card, you need to activate the authorized user’s card before they can begin making purchases. Some banks issue the same card number to each authorized user, while others issue individualized card numbers to make it easier to track who made each purchase.
Yes, some card issuers allow authorized users to be added to secured credit cards. If you have a secured card, contact your bank to ask if you can add an authorized user.