Can I Add an Authorized User to My Credit Card?

Adding an authorized user to a credit card account allows another person to use the credit line while the primary cardholder maintains control and responsibility. This article explains what an authorized user is, how to add and remove one, and the considerations for both parties.

Defining an Authorized User

An authorized user is an individual granted permission to make purchases using another person’s credit card account. They receive a physical card linked to the primary account. An authorized user is not legally responsible for the debt incurred on the account. The primary cardholder retains full financial liability for all charges, including those made by the authorized user. This arrangement differs from a joint account holder or co-signer, as authorized users cannot make changes to the account, such as requesting credit limit increases or closing the account.

Steps to Add an Authorized User

The process for adding an authorized user typically involves steps initiated by the primary cardholder. Most credit card issuers allow this through online portals, mobile applications, or by contacting customer service. To add an authorized user, specific personal information such as their full name, date of birth, and current address is generally required. A Social Security Number (SSN) may also be requested by the issuer, particularly if account activity is reported to credit bureaus for the authorized user’s credit history. Once the necessary information is provided and processed, the issuer typically mails a card to the authorized user.

Key Considerations for Primary Cardholders and Authorized Users

Adding an authorized user has implications for both the primary cardholder and the authorized user. For the primary cardholder, retaining full legal responsibility for all charges made on the account is paramount. This includes any spending by the authorized user, as the primary cardholder is obligated to make all payments. Failure to manage the account responsibly, such as making late payments or carrying high balances due to authorized user spending, can negatively impact the primary cardholder’s credit score. Some credit card issuers offer the ability for primary cardholders to set spending limits for authorized users, providing a measure of control over expenditures.

For the authorized user, being added to an account can influence their credit history. If the credit card issuer reports authorized user activity to credit bureaus, the account’s payment history and credit utilization appear on their credit report. This can be beneficial for building credit if the primary cardholder consistently makes on-time payments and maintains low credit utilization. Conversely, if the primary cardholder manages the account poorly, such as with late payments or high balances, it could adversely affect the authorized user’s credit score.

Authorized users have limited access to account information, typically viewing their own transactions but not making changes to account settings. They are not legally responsible for the debt.

Removing an Authorized User

Removing an authorized user is initiated by the primary cardholder. This can be done by calling customer service or through online portals/mobile applications. Once processed, any credit card issued to the authorized user becomes invalid and cannot be used for further purchases.

The removal can affect the authorized user’s credit report. The account may remain on their credit report for a period, but new activity will no longer be reported. If the authorized user had limited credit history and relied on the authorized user account for credit building, its removal could impact factors like the average age of their accounts or their credit utilization ratio, potentially causing a temporary dip in their credit score. However, some credit reporting agencies may automatically remove negative information related to authorized user accounts for which the authorized user was not financially responsible.