Adding someone as an authorized user on a credit card sounds simple—but it can have a big impact on both people’s credit. It can help build credit history, improve credit scores, and provide easy access to funds. But it also comes with risks that aren’t always obvious up front.
Whether you’re thinking about adding someone to your credit card or being added to someone else’s, it’s smart to understand how it works. Here’s what being an authorized user really means—and how it can help (or hurt) your credit.
What is an authorized user?
An authorized user is someone who’s added to another person’s credit card account. They get their own card and can make purchases, but they aren’t legally responsible for paying the bill. That’s still up to the primary cardholder.
The credit card issuer reports the account activity to the credit bureaus under the authorized user’s name, even though they don’t actually own the account. That’s what makes this setup useful for building credit.
Some credit card companies allow the primary cardholder to set spending limits for authorized users, but not all do. In most cases, the authorized user can charge just like the account owner—but they won’t receive billing statements or have control over the account.
Authorized Users vs. Joint Account Holders
Authorized users and joint account holders both have access to the same credit line, but the similarities stop there.
A joint account holder is equally responsible for the debt. They go through the same application process as the primary cardholder, and both people’s credit histories are reviewed. If either person misses a payment, it hurts both credit scores—and both are on the hook for the balance.
An authorized user, on the other hand, doesn’t have to apply or pass a credit check. They’re added to the account by the primary cardholder, usually just by submitting their name and Social Security number. And while they can make purchases, they aren’t liable for the balance.
This difference matters. If the account goes unpaid, a joint account holder will be chased for the debt. An authorized user won’t. But both types of users can still see the account show up on their credit report.
Why People Become Authorized Users
Most people become authorized users for one of two reasons: to help build credit or to make spending easier for family members.
- To build credit history – This is one of the fastest ways for someone with no credit—or poor credit—to get a credit card account added to their credit report. If the primary cardholder has a strong payment history and low balances, the authorized user can benefit from that.
- To help kids or family members – Parents often add teenagers or college students as authorized users so they can cover emergencies or shared expenses. Some couples also add each other for convenience, especially if one person has a longer credit history or better credit score.
Being an authorized user isn’t a long-term credit strategy. But it can be a useful tool for someone who needs a head start or wants to establish credit while they build up their own accounts.
How Being an Authorized User Affects Your Credit
When a credit card issuer reports authorized user accounts to the credit bureaus, it can affect the authorized user’s credit score—both positively and negatively. That’s because the entire account history, including payments and balances, often gets included in their credit report.
How much of an impact it has depends on the primary cardholder’s behavior. If they pay on time and keep balances low, that good history can help boost the authorized user’s credit score. But if they miss payments or max out the card, it can hurt the authorized user’s score instead.
Positive Impacts
Being an authorized user can help in several ways:
- Builds credit history fast – The account can show up on the authorized user’s credit report with the full history, not just from the day they were added.
- Improves credit scores – If the account has low balances and on-time payments, it adds positive data to the credit report.
- Increases total available credit – This can improve the authorized user’s credit utilization rate, which is a key factor in credit scores.
- Boosts credit profile for future applications – A stronger credit report can help the authorized user get approved for credit cards, car loans, or other types of financing on their own.
This strategy works best when the primary cardholder has a long, clean credit history. If that’s not the case, the benefits may be minimal—or even negative.
Potential Risks
There are also downsides to becoming an authorized user:
- Bad account behavior shows up – If the primary cardholder pays late or carries high balances, that information can hurt the authorized user’s credit score.
- No control over payments – Even if the authorized user spends nothing, their credit can still take a hit if the card isn’t managed well.
- Sudden removal can drop credit scores – If the account is removed from the credit report, it may reduce the authorized user’s average credit age or total available credit.
- Relationship strain – If the cardholder feels the authorized user is spending too much, or if the user is blamed for something they didn’t do, it can create tension.
Because of these risks, both parties should be clear about expectations before moving forward. Trust and transparency matter just as much as credit strategy.
How to Add or Remove an Authorized User
Each credit card issuer has its own process, but adding or removing an authorized user is usually quick and easy.
To add someone, the primary cardholder typically just needs to log into their account or call customer service. They’ll need the authorized user’s full name and often their date of birth and Social Security number. Some issuers may mail a separate card to the authorized user, while others send it to the account holder.
Removing an authorized user works the same way. The primary cardholder can log in or call the issuer and ask to remove the person from the account. In some cases, the authorized user can also request to be removed by contacting the credit card company directly.
Once removed, the account will eventually stop reporting on the authorized user’s credit report. This might take a billing cycle or two, depending on how quickly the issuer updates the credit bureaus.
Things to Consider Before Saying Yes
Being added as an authorized user can be helpful, but it’s not always the right move. Before saying yes—or before adding someone to your account—take a minute to think it through.
- Do you trust the other person? – Both parties need to be financially responsible. If either one makes mistakes, both credit scores can suffer.
- Are you clear on expectations? – Talk about how the card will be used. Will the authorized user make purchases? Who pays the balance? Set rules upfront.
- Is this temporary or long term? – Being an authorized user should be a stepping stone, not a permanent setup. Have a plan for when the account will be removed.
- Can the account hurt your credit? – If the card has high balances or a spotty payment history, it could drag down your credit instead of helping it.
- Will removing the account later affect your credit score? – If it’s your oldest or only positive account, losing it could shorten your credit history or increase your credit utilization.
Adding an authorized user is a personal decision, but it’s also a credit decision. Make sure it fits your goals before you commit.
Final Thoughts
Becoming an authorized user can be a smart move—if the account is well-managed and both people are on the same page. It’s one of the fastest ways to build credit, but it’s not without risk.
Before you move forward, check your reasons, set clear expectations, and make sure the account is a good fit. Done right, it can give your credit a solid boost and set you up for future success.
