How Many Authorized Users Can I Have?

An authorized user is an individual granted permission by a primary account holder to use an existing financial account. This arrangement allows the authorized user to make transactions as if the account were their own. The primary account holder retains full management of the account and its financial obligations. This setup facilitates shared access while maintaining centralized control over the account.

Credit Card Authorized User Limits

There is generally no strict numerical limit on the number of authorized users a primary cardholder can add to a credit card account. Many major credit card companies do not impose a hard cap, allowing for multiple individuals to be included.

Practical considerations often guide the primary cardholder’s decision. Managing the spending of numerous individuals on a single account can become complex. Some premium credit cards might charge a fee for each authorized user, ranging from no cost to upwards of $75 or $195 annually per user depending on the card and issuer.

Understanding Authorized User Privileges and Responsibilities

An authorized user receives a credit card linked to the primary account and can use it to make purchases. They may also gain access to certain card benefits, such as purchase protection or lounge access, if the card offers such perks.

However, the authorized user’s permissions do not extend to full account management. They cannot access account details, change account information, request credit limit increases, redeem rewards, or close the account. While some issuers may allow authorized users to view balances or make payments, ultimate control and responsibility rest solely with the primary cardholder.

The primary cardholder bears the entire financial responsibility for all charges made on the account, including those incurred by authorized users. The credit card company cannot pursue an authorized user for unpaid balances.

Impact on Credit Scores

Adding an authorized user to a credit card can influence the credit profiles of both the primary cardholder and the authorized user. For the primary cardholder, their credit score can be indirectly affected if the authorized user’s spending leads to high credit utilization or if payments are not made on time. The primary cardholder’s payment history and credit utilization ratio, which are significant factors in credit scoring models, incorporate all activity on the account.

For the authorized user, being added to an account with a strong payment history and low credit utilization can help establish or improve their credit score. Many credit card issuers report authorized user activity to major credit bureaus, allowing the account’s positive history to reflect on the authorized user’s credit report. This can be particularly beneficial for individuals with limited credit history seeking to build a positive credit profile. However, if the primary account holder misses payments or maintains high balances, this negative activity can also appear on the authorized user’s credit report and potentially harm their score. It is important to confirm with the issuer whether authorized user activity is reported to credit bureaus for it to impact the authorized user’s credit.

Adding and Removing Authorized Users

Adding an authorized user to a credit card account involves the primary cardholder contacting the credit card issuer. This can be done through online banking portals, mobile applications, or by calling customer service. The primary cardholder needs to provide basic identifying information for the authorized user, such as their full name, date of birth, and sometimes their Social Security number.

After the request is processed, a physical card for the authorized user is mailed, often to the primary cardholder’s address. Some issuers allow the primary cardholder to set spending limits for authorized users, offering an additional layer of control. Removing an authorized user is a straightforward process, initiated by the primary cardholder by contacting the issuer through similar methods. An authorized user can also request to remove themselves from an account by contacting the issuer directly.