How to Add an Authorized User to a Credit Card

Adding an authorized user to a credit card account offers convenience and financial benefits for both the primary cardholder and the individual being added. An authorized user is a person granted permission by the primary cardholder to make purchases using the credit card account. This arrangement can simplify managing household expenses or help someone establish credit history.

Understanding Authorized Users

An authorized user receives a credit card linked to the primary account, allowing them to make purchases. The primary cardholder retains sole legal responsibility for all charges incurred on the account, including those made by the authorized user, and is accountable for ensuring all payments are made on time.

For the primary account holder, adding an authorized user can streamline shared spending, such as for family members, or provide emergency access to funds. It also allows for centralized tracking of expenses, as all transactions appear on the primary cardholder’s statement. Authorized users gain access to credit without needing to apply independently, which can be particularly beneficial for those with limited or no credit history. This setup can help them begin building a credit profile based on the primary account’s responsible usage.

While authorized users can make purchases, they generally do not have the ability to manage the account in full, such as requesting credit limit increases or redeeming rewards, which remains the sole purview of the primary cardholder. Authorized users are not legally obligated to pay the credit card bill; this duty rests entirely with the primary cardholder.

Preparing to Add an Authorized User

Before initiating the process of adding an authorized user, the primary cardholder needs to gather specific personal details about the individual. This typically includes their full legal name, date of birth, and current address. Some card issuers may also require the authorized user’s Social Security Number (SSN) or Taxpayer Identification Number (TIN).

Card issuers often have specific eligibility requirements for authorized users, with age being a common factor. Minimum age requirements can vary significantly among providers, generally ranging from 13 to 18 years old, although some issuers do not specify a minimum age. The primary cardholder should consult their specific card issuer’s terms and conditions or website for any unique requirements or limitations before proceeding.

Some credit card products may also charge a fee for adding an authorized user. While the authorized user does not undergo a credit check, the primary cardholder should assess their own credit account standing to ensure it is in good health, as the authorized user’s credit profile will reflect the primary account’s history.

The Process of Adding an Authorized User

Once all necessary information is gathered, the primary cardholder can proceed with adding an authorized user. The most common methods include using the card issuer’s online account portal or contacting customer service by phone. Some issuers also offer the option to add an authorized user via mail.

For online additions, the primary cardholder logs into their credit card account and navigates to a section such as “Manage Users” or “Add an Authorized User.” They will input the authorized user’s personal details into the designated fields.

If opting for a phone call, the primary cardholder can dial the customer service number on their credit card. After submission, the card issuer generally provides a confirmation. A new physical credit card, bearing the authorized user’s name, is then typically mailed to the primary cardholder’s address.

Credit Implications for Both Parties

Adding an authorized user can affect the credit profiles of both the primary cardholder and the authorized user. For the authorized user, this arrangement can be an effective way to establish or improve their credit history. If the primary account is managed responsibly, with on-time payments and low credit utilization, this positive activity is often reported to major credit bureaus and can benefit the authorized user’s credit score.

However, the authorized user’s credit can also be negatively impacted if the primary account holder mismanages the account. Late payments, high credit utilization, or other derogatory marks on the primary account will typically be reflected on the authorized user’s credit report. It is important to note that not all credit card issuers report authorized user activity to credit bureaus, meaning the credit-building benefit may not always apply. Primary cardholders or prospective authorized users should confirm the issuer’s reporting policies to understand the potential credit impact.

For the primary cardholder, adding an authorized user generally has minimal direct impact on their credit score. The primary cardholder’s score is primarily affected by their own payment history and credit utilization. However, if the authorized user’s spending leads to higher balances and increased credit utilization, or if it contributes to late payments, the primary cardholder’s credit score could be negatively affected.

Removing an Authorized User

A primary cardholder may wish to remove an authorized user from their account. The removal process is straightforward and mirrors the methods used for adding an authorized user. Primary cardholders can typically remove an authorized user through their online account management portal or by contacting the credit card issuer’s customer service department via phone.

When using online platforms, the primary cardholder navigates to the same section where authorized users were added, often labeled “Manage Users” or “Account Services,” and selects the option to remove the individual. If contacting customer service by phone, the primary cardholder will need to verify their identity and clearly state their request to remove the authorized user.

Upon successful removal, the authorized user’s credit card linked to that account will become inactive immediately. The card issuer will typically cease reporting the account activity to the credit bureaus for the removed authorized user. This means any associated history will generally no longer appear on their credit report.