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An authorized user is a person added to an existing credit card account by a primary cardholder. Authorized users can access the available credit or a specific portion of it, and they may receive their own personal card. Any spending they do is added to the main account balance.
If you would like to add an authorized use to your credit card account, you can do it via your online account, mobile app, or by simply calling the customer service number on the back of your credit card. Whether it's a spouse, a child, or a parent, it's a fairly straightforward process.
- Step 1: Gather the personal information of the person you would like to add. This includes full legal name, street address, Social Security number. The age of the authorized user varies from issuer to issuer and with some issuers it can be as low as 13 years of age.
- Step 2: Call your card issuer and ask to add an authorized user to your account and provide the information asked for. In some cases, issuers may not ask for a Social Security number or address, but it's good to have those things ready in case you need them.
- Step 3: Ask about setting limits on the authorized user's account. Some issuers let you place a limit on the amount authorized users can charge to your account. That means you can give your teenager a $100 limit, but your spouse a $5,000 limit.
It's as simple as that. Many issuers will issue a separate card for the authorized user, but it will generally be mailed to you as the primary cardholder, and you can choose to give it to the authorized user or not.
Another benefit of adding an authorized user to your account is that the user's credit score can be improved through using your account. Someone with poor credit may not be able to get a credit card, but if they are an authorized user on another person's account, that card may appear on their credit history and can improve their credit. This is known as "piggybacking" and it's a well-accepted practice. Just confirm with your credit card issuer they will report the authorized user's activity to the major credit bureaus.
Who can be an authorized user?
You can add anyone as an authorized user on your credit card account. The only requirement is they should meet the credit card issuer's minimum age requirements. The issuer may not perform a hard pull on the authorized user's credit and may have less strict income requirements as authorized users do not apply for a card of their own.
An authorized user is typically a family member or a relative. However, it is not required for an authorized user to live at the same address as you or even be a close relative. Still, it should be someone with whom you have a close relationship and can work out a payment arrangement for when they use the card.
Authorized users are typically children, spouses or partners, or other close relatives or friends.
Does an authorized user have any specific responsibilities?
When an authorized user is added to a credit card account, they are typically allowed to make chargers and may even get their own credit card. But authorized users aren't required to make payments every month. It's the primary account holder's responsibility to make all the payments.
If the authorized user does not use the account responsibly, it can hurt the credit of both the primary account holder and the authorized user. Since multiple people have access to the account, there is a risk of overspending, which could lead to missed or late payments. As a result, the credit of the primary cardholder and authorized user can be affected.
To avoid such situations, consider discussing responsible credit card use (like making on-time payments and staying well below the credit limit) with your authorized user. The primary cardholder may also want to place a spending limit on the authorized user's card.
