What is an Authorized Credit Card User?

An authorized credit card user is a trusted family member or close friend granted access to a primary cardholder’s credit card account, allowing them to spend the money without being responsible for making payments. Becoming an authorized user allows you or a trusted individual to be financially responsible and build credit quickly. 

If you’re looking to become an authorized user on a credit card or add one to your account but aren’t sure what to expect, you’re in the right place. 

In this article, we’ll share everything you need to know about authorized-user credit cards and their alternatives to help you decide what’s best for your financial situation.

What is an Authorized User on a Credit Card?

An authorized user on a credit card is someone who’s been added to either a personal or business credit card account — typically a spouse, an adult child, a friend, an employee, or yourself. However, the primary cardholder must be in good standing with the bank to add an authorized user. 

Once they’ve been added, the authorized credit card user will receive access to the credit card associated with the account to spend however they’d like without the stress of paying off the balance. 

Some of the benefits of adding or becoming an authorized credit card user include:

• Saves you money and time from opening a new credit card account
• Gives you the freedom to make purchases without making payments
• Allows you to build credit and improve your credit score
• Teaches you how to be financially responsible

Who is a Good Candidate to Be an Authorized Credit Card User?

You might wonder, “How old do you have to be to be an authorized user on a credit card?” Great question. This can vary depending on the bank, but typically, anyone 13 and older is eligible to become an authorized user on a credit card. 

But age is not the only requirement to look for. An authorized user must also be trustworthy and willing to follow any set guidelines on how the credit card account is used. 

How Does This Differ From Joint Accounts?

An authorized user credit card differs significantly from a joint credit card account. Instead of the primary cardholder being fully responsible, a joint account is a shared responsibility between two individuals. With a joint account, you and another person must: 

• Take care of payments even if the other person dies or is temporarily unable to do so
• Understand that late or unpaid payments will affect each person’s credit score
• Agree on who to add or remove as an authorized user
• Have equal control over the account

How Does Being an Authorized User Affect Your Credit?

We often hear, “If I’m an authorized user on a credit card, does it affect my credit score?” The answer depends on how you act as an authorized user. Let’s look at a few examples of when being an authorized credit card user may improve or hurt your credit. 

When Being an Authorized User May Improve Your Credit

Being an authorized user on a credit card may benefit your credit if you: 

• Pay your bills on time
• Keep your credit card usage below 30% 
• Have little to no credit history 
• Want to switch up your credit mix
• Have a long credit history with your card 

When Being an Authorized User May Hurt Your Credit 

Being an authorized credit card user may work against you if:

• You have a history of late or unpaid payments
• If you don’t already have a strong credit history
• If you fail to report unauthorized users
• You added to an account that’s not in good standing
• The primary cardholder is irresponsible with the account 

What Responsibilities Does an Authorized User Have?

While an authorized credit card user isn’t responsible for paying the bill, they are responsible for: 

• Checking their credit score 
• Reporting if the credit card is lost or stolen
• Avoiding overspending
• Making purchases within a set allowance 

Failing to meet these responsibilities can result in a loss of trust between the authorized credit card user and the primary cardholder. 

How to Add or Become an Authorized User

If you’re wondering how to add an authorized user to a credit card, you’ll need to gather a few details of the person you want to add to your account. These include: 

• First and last name 
• Address
• Date of birth
• Social Security number

After you’ve gathered this information, you’ll need to: 

• Call your credit card company.
• Share the details of the authorized person you’re looking to add.
• Review the terms and pay fees.
• Wait until you receive a card in the mail to authorize.
• Set a spending limit and review rules with the authorized user(s).
• Monitor your account to ensure there’s no overspending or misuse.

If you’re becoming an authorized credit card user, you need to ask the primary cardholder for permission to be added. If they approve, they will ask you to provide the contact details listed above as they contact their credit card company. Once approved, you’ll receive a credit card in the mail to use. 

How to Remove or Get Removed as an Authorized Credit Card User

If you’re an authorized user looking to be removed from someone else’s credit card, you’ll need to:

• Contact customer service to request removal. 
• Prepare personal details to verify your identity.
• Check your credit report or request written confirmation to ensure you’re no longer associated with the account. 

If you’re the primary cardholder planning to remove a family member, friend, or an employee from your account, you’ll need to: 

• Call your credit card company and request removal.
• Review your account for any pending charges.
• Use scissors or a paper shredder to destroy the authorized user’s inactive card. 

Alternatives to Becoming an Authorized Credit Card User

If you or a loved one cannot become an authorized credit card user, other alternatives are available. Here are some of the most common options to consider: 

Secured Credit Card

Unlike a traditional credit card, a secured credit card [LINK TO UPDATED SECURED CREDIT CARD BLOG] requires you to put a cash deposit down upfront to show the lender that you can make payments. 

This deposit often reflects the limit you’re allowed to spend and is an excellent option for those with no credit history or who are struggling to be approved for a traditional credit card.  

Credit Builder Loan

A credit-builder loan is an excellent alternative if you’re looking to rebuild your credit after a setback. You’ll receive a deposit of money from a lender in a traditional savings account or a certificate of deposit (a savings account where you pay a certain amount for a fixed period), allowing you to earn a fixed interest rate in exchange. 

However, you cannot access this money until your loan has been repaid. But the good news is, once your loan is paid off, you’ll receive the original amount of the loan and any additional interest you’ve earned to spend however you like. 

Loan Cosigner 

If you or a family member plan to go to college, buy a new car, or purchase a home but need financial assistance, becoming or asking for a loan co-signer could be a helpful option. 

With a trusted loan co-signer, you have a higher chance of being approved for a loan at a lower interest rate, especially if they have a healthy credit history. A loan co-signer can also help make payments if you cannot. Whoever co-signs with you can even build their credit history if you make timely payments. 

Prepaid Card 

If you’re not concerned with building credit or have a teenager constantly asking you for money to hang out with friends, a prepaid card from Check City is the next best option. This card acts as a reloadable debit card to add and transfer funds whenever you need. Plus, no credit check or minimum balance is required.