Updated: October 27, 2024
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A credit card authorized user is an additional person permitted to use a principal cardholder’s account. The user receives a card with their name on and access to the account’s funds. They can use the card to make purchases, but the principal cardholder is responsible for the payments and controls the account.
Being an authorized user can help a person improve their credit, which can be beneficial for individuals with no or limited credit history.
Credit Card Authorized Users Fast Facts
Principal cardholders can opt to add an authorized user to their account. Understanding how it works can help both the account owner and authorized user.
Authorized users are individuals who share the credit line of a primary cardholder. They are given permission to use the credit card funds.
Having authorized users is the discretion of the main cardholder, who controls the account and is legally responsible for paying purchases made through the authorized user’s card.
Being an authorized user comes with benefits and drawbacks. Ensuring responsible credit utilization and repayments make the pros outweigh the cons.
There are various reasons why a cardholder would choose to add an authorized user to their account. For instance, they may want to keep a credit account active and build their credit score. Some may do it to help another person build credit. Others may decide to have authorized users to improve their own credit scores as well.
The account owner can request to add anyone as an authorized user. However, they may have to meet a minimum age requirement set by the credit card issuer. Typically, primary cardholders add a spouse, partner, child or close friend as an authorized user. Some companies may also opt to add employees as authorized users on a business card.
Being a credit card authorized user can be beneficial. It provides you with a card in your name to use for purchases. You can also use it to establish your credit history since your credit report will reflect the credit card account. However, the legal responsibility for repayments is on the main account holder. That’s why both the principal owner and the authorized user should ensure responsible credit utilization.
Generally, adding a credit card authorized user is easy. It can be done online, by phone or by visiting a branch. The issuer may ask the principal account holder to answer security questions to prove their identity if they make the request online or by phone.
Typically, the account owner will need to provide the following information about the person they want to add as an authorized user:
Name
Date of birth
Social Security Number
Address (where the card will be sent)
U.S. citizenship status (depends on card issuer)
Relationship to the principal (depends on card issuer)
Depending on the credit card issuer, there may be a minimum age requirement for authorized users. Some issuers may also charge an additional annual fee per authorized user added.
Authorized users are given credit, a card in their name they can use for various purchases. Charges are deducted from the primary cardholder’s account. There are limitations on what they can do to the credit line, including:
Raise the credit limit
Add more authorized users
Close the account
Change account information, such as mailing address
Some card issuers may have additional rules regarding authorized users. It’s best to clarify this information with them when discussing adding a user to your account.
Ultimately, the decision to have an authorized user falls on the account owner. That’s because they are legally responsible for repayments and debts accumulated through the credit account. That said, the principal owner can have an agreement with the authorized user regarding payment of purchases made through the credit card.
Once the principal decides to add an authorized user, they must go through the application process. Issuers may have different requirements. The process typically includes the following steps:
The account owner must inform their credit card issuer of their decision to have an authorized user. This may be done by phone, in person or online.
The principal may have to provide basic information about the person they wish to add as an authorized user. This may vary per issuer but usually includes the full name, date of birth, address and Social Security number.
The processing time for adding an authorized user may vary per issuer. Some approve requests immediately, while others conduct identity verification first. Once approved, the card will be sent in the mail.
Depending on the issuer, the account owner may be able to set spending limits on the authorized user’s card.
Adding an authorized user to a credit card can be advantageous for the principal account holder. However, it may also come with drawbacks. For example, it can help build credit.
On the other hand, irresponsible use and spending can end up hurting the principal’s credit history. It may even lead to debt.
Benefits
Drawbacks
Being an authorized user is generally beneficial. That’s especially true for individuals looking for a way to establish credit. However, there are risks. Before deciding to be added as an authorized credit card user, make sure you weigh the pros and cons first. It would also help to have a clear agreement with the account owner regarding using the card.
Benefits
Drawbacks
Being an authorized user can help you build credit. Once you’re ready to take on more financial responsibility, you may want to consider getting your own credit card. There are options available for different needs. For instance, many issuers offer student credit cards with features and perks for young adults.
Deciding whether to add an authorized user or be one can be a bit confusing. MoneyGeek answers some commonly asked questions to help you better understand what an authorized user on a credit card is.
Yes, authorized user cards and supplementary credit cards are the same. Generally, a principal authorizes another person to use their credit account. They also share the benefits that come with the credit card.
Yes, non-family members can be authorized users. However, the principal account owner should be mindful of the purchases an authorized user makes, as they’re ultimately responsible for the account.
Being an authorized user can help you build credit as activities made through the credit account may be reflected on your credit report. This can be beneficial to you if the principal is a responsible credit account holder. That said, you may have to check with the issuer if transactions made by authorized users are reported to credit bureaus.
Generally, a principal may add any authorized user of their choice, including minors. But there may be a minimum age requirement, depending on the issuer. It’s best to clarify the issuer’s requirements to ensure eligibility.
The process of adding an authorized user is easy. Typically, the principal account holder can simply contact their issuer to inform them about their decision. This may be done online, by phone or in person.
There is no limit as to how many authorized users a principal can add. However, some issuers may have restrictions. There may also be fees charged per authorized user added.
If you want to learn more about credit cards, how they work and the different types available, the following guides can help you get started with your credit-building journey.
About Nathan Paulus
Nathan Paulus is the Head of Content Marketing at MoneyGeek, with nearly 10 years of experience researching and creating content related to personal finance and financial literacy.
Paulus has a bachelor's degree in English from the University of St. Thomas, Houston. He enjoys helping people from all walks of life build stronger financial foundations.
