How Old Must an Authorized User Be for a Credit Card?

An authorized user on a credit card is an individual granted permission to make purchases using the primary cardholder’s account. This arrangement allows someone to use a credit card without being legally responsible for the debt incurred. Understanding the age requirements and implications for both parties is important for effective credit management. This article explores the benefits and responsibilities for authorized users and primary cardholders.

Understanding Authorized Users and Age Requirements

An authorized user is someone who receives a credit card linked to a primary cardholder’s account and can make purchases, but they are not legally obligated to pay the bill. The primary cardholder retains full responsibility for all charges on the account. This distinction means authorized users are not subject to the same age restrictions as individuals applying for their own credit card, which typically requires being at least 18 years old.

There is no federal minimum age requirement for an authorized user on a credit card. While federal law mandates individuals be 18 to open their own credit card, this does not apply to authorized user status. Credit card issuers set their own internal policies for the minimum age. These policies vary significantly, with some issuers having no minimum age, while others set limits at 13, 15, or 16 years old.

Benefits and Responsibilities for the Authorized User

Being an authorized user can offer several advantages, particularly for younger individuals or those new to credit. A primary benefit is the potential to help establish a credit history. If the credit card issuer reports authorized user activity to the major credit bureaus, the account’s payment history and credit utilization can appear on the authorized user’s credit report. A well-managed account with on-time payments and low credit utilization can positively contribute to the authorized user’s credit score.

This arrangement provides a practical opportunity for financial education. Authorized users can learn about responsible spending, budgeting, and the impact of credit card use in a controlled environment.

Considerations for the Primary Cardholder

The primary cardholder assumes full legal and financial responsibility for all transactions made on the account, including those by authorized users. Failure to make timely payments or maintaining high balances due to an authorized user’s spending can negatively impact the primary cardholder’s credit score. High credit utilization or late payments on the account, even if caused by the authorized user, can lead to a decrease in the primary cardholder’s score.

To mitigate risks, primary cardholders should consider setting clear spending limits with authorized users and regularly monitoring account statements. Some credit card issuers offer tools that allow primary cardholders to set spending limits for authorized users or receive notifications for purchases.

The Process of Adding or Removing an Authorized User

Adding an authorized user requires the primary cardholder to provide specific information to the credit card issuer. This includes the authorized user’s full legal name, date of birth, and sometimes their address. Some issuers may also request a Social Security Number.

Primary cardholders can add an authorized user through various methods, including calling the credit card issuer’s customer service line or by accessing their online banking portal or mobile application. Once added, the authorized user receives their own physical card linked to the primary account, which takes several business days to arrive.

Removing an authorized user from an account can also be done through similar channels. The primary cardholder can call the customer service number on their credit card to request removal. Many issuers also allow removal through their online account management systems or mobile apps. Upon removal, the authorized user’s card is deactivated, and the account activity may no longer appear on their credit report.