How to Add an Authorized User to a Credit Card
Understand how to properly add and manage an authorized user on your credit card. Get clear guidance on setup, implications, and oversight.
An authorized user is an individual granted permission to use a credit card account by the primary cardholder. While they can make purchases with a card linked to the account, they do not hold legal responsibility for the debt incurred. This arrangement can offer a way for a family member to establish or improve their credit history, or it can simply provide convenience for shared household spending.
Gathering Necessary Information
Before initiating the process of adding an authorized user, the primary cardholder typically needs to collect specific personal details about that individual. Common requirements include the authorized user’s full legal name, date of birth, and current address. Some credit card issuers may also request a Social Security Number (SSN) or Taxpayer Identification Number (TIN) for identity verification purposes and to facilitate credit reporting.
While many major issuers can report to credit bureaus even without an SSN, providing it often ensures the account activity appears on the authorized user’s credit report. It is advisable for the primary cardholder to confirm these specific requirements directly with their credit card issuer, as policies can vary.
Steps to Add an Authorized User
Most credit card issuers offer several convenient methods to add an authorized user, including online portals, telephone customer service, or sometimes even mail. For online additions, the primary cardholder can usually navigate to the “Account Management” or “Authorized Users” section within their credit card issuer’s website or mobile application. There, they will find an option to add a new user and can input the previously collected details into the required fields. The submission often results in an immediate confirmation, with a new card for the authorized user typically arriving by mail within a period of 7 to 10 business days.
Alternatively, a primary cardholder can call the customer service number located on the back of their credit card. A representative will guide them through the process, verbally collecting the authorized user’s information. In some instances, particularly for certain types of accounts or if online options are unavailable, adding an authorized user might involve completing a specific form and mailing it to the issuer.
Managing Authorized User Accounts
The primary cardholder retains sole legal responsibility for all charges made on the account, including those incurred by the authorized user. This means the primary cardholder is accountable for making all payments, regardless of who made the purchase.
The account’s activity, including payment history and credit utilization, can appear on both the primary cardholder’s and the authorized user’s credit reports. This can be beneficial for the authorized user if the account is managed responsibly with on-time payments and low balances, potentially helping them build a positive credit history. Conversely, late payments or high credit utilization by the primary cardholder can negatively affect the credit scores of both parties.
To maintain control, primary cardholders should regularly review account statements and consider setting up transaction alerts through their issuer’s online portal or mobile app. While not all personal credit cards allow for specific spending limits for authorized users, some issuers, like American Express, do offer this feature, often with limits as low as $200. Removing an authorized user is typically a simple process, often done online or by calling customer service, which deactivates their card and may remove the tradeline from their credit report.