It’s important to understand that an authorized user is not held responsible by the credit card issuer for any charges they make on the card - it’s officially the primary account holder’s responsibility to pay off the balance. Once added as an authorized user, the account and payment history associated with the card will then show up on the authorized user’s credit reports.
The authorized user will then be supplied with a credit card associated with that account with their name on it, allowing the authorized user to make purchases with the card. Typically, an authorized user can be added to a card account for free, although some issuers charge a fee for each authorized user who is added to the account. What is an authorized user on a credit card?Īn authorized user on a credit card is someone who is added to an existing credit card account owned by a trusted family member or friend. New to credit? These are our picks for the best first credit cards to build credit history. However, becoming an authorized user can backfire for both the person who is added to the account and the primary account holder if you’re not careful. It can also make sense for sharing a credit card with a spouse or teaching a child about responsible financial practices. This is also called “piggybacking.”īecoming an authorized user isn’t only useful for repairing credit. If you’re just starting to build your credit history, or if your credit scores have taken a hit because of some financial missteps, an easy way to add positive information to your credit file is by becoming an authorized user on another’s credit card.
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