How Old Do You Have to Be an Authorized User?

An authorized user on a credit card account can make purchases using the primary cardholder’s credit line. This article explores the age requirements for becoming an authorized user and the financial considerations for both the primary cardholder and the individual being added to the account.

Understanding Authorized Users and Age Rules

An authorized user is an individual granted permission to use a primary cardholder’s credit card account. While they receive a card with their name, they are generally not legally responsible for the debt incurred on the account, unlike a co-signer or joint account holder who shares equal liability.

There is no federal law establishing a minimum age for an authorized user on a credit card. Instead, individual credit card issuers set their own policies regarding age requirements. Many issuers allow authorized users as young as 13 years old, while others may set the minimum at 15 or 16 years. Some credit card companies do not specify any minimum age at all, leaving the decision to the primary cardholder’s discretion.

The rationale behind these varied age rules often relates to financial education and responsible spending. Adding a younger individual can be a method to teach money management under supervision. The primary cardholder should confirm the specific age policy directly with their credit card issuer.

Credit Score Impact for Both Parties

Adding an authorized user 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 by the authorized user’s spending habits. High utilization of the credit limit or late payments on the account, even if made by the authorized user, can negatively impact the primary cardholder’s credit utilization ratio and payment history, which are significant factors in credit scoring models. The primary cardholder remains solely accountable for all charges and timely payments on the account.

For the authorized user, this arrangement can be a way to establish or build a credit history. When the primary account is managed responsibly, with low utilization and consistent on-time payments, this positive activity may be reported to credit bureaus (Experian, Equifax, and TransUnion) and appear on the authorized user’s credit report. This can help the authorized user develop a credit profile before they are old enough to open their own credit accounts. Not all credit card issuers report authorized user activity to all three credit bureaus, or they may have policies not to report for minors under a certain age, such as 18 years old. Confirming the issuer’s reporting policy is advisable to understand the potential credit-building benefits.

Steps to Add an Authorized User

Adding an authorized user to an existing credit card account is a straightforward process for the primary cardholder. Most credit card issuers offer several methods to facilitate this. These include logging into the primary cardholder’s online account management portal, calling the customer service number on the back of the credit card, or completing a physical form.

When adding an authorized user, the primary cardholder will need to provide specific information about that individual. This includes their full legal name and date of birth. In some cases, the credit card issuer may also request the authorized user’s Social Security Number. Once the necessary information is submitted and the request is processed, a new credit card bearing the authorized user’s name is mailed to the primary cardholder’s address or directly to the authorized user.