How to Add an Authorized User to Your Credit Card

An authorized user is an individual granted permission by a credit card’s primary account holder to use their credit card account. This arrangement allows the authorized user to make purchases using a card issued in their name, which is linked to the primary account. People often choose to add an authorized user to assist a family member in establishing or improving their credit history, or to simplify shared household expenses by consolidating spending on a single account.

Preparing to Add an Authorized User

Adding an authorized user requires careful preparation, beginning with gathering specific personal details about the individual you intend to add. The primary cardholder typically needs to provide the prospective authorized user’s full legal name, date of birth, and current address. Many credit card issuers also require the authorized user’s Social Security Number (SSN) or Taxpayer Identification Number (TIN) to report account activity to credit bureaus, which is important for the authorized user’s credit building efforts.

Beyond personal data, the primary cardholder must consider several key decisions that will impact the authorized user’s experience and their own account management. One important decision involves whether to implement spending limits for the authorized user. While not all consumer credit card issuers offer this feature, some, like American Express and Capital One, do allow primary cardholders to set specific spending thresholds for authorized users, sometimes as low as $200. Establishing clear expectations for spending is important, even if a formal limit cannot be set through the issuer.

The primary cardholder also determines how the physical credit card will be delivered to the authorized user. In many cases, the credit card for the authorized user is mailed directly to the primary cardholder’s address, who then provides it to the authorized user. This allows the primary cardholder to control the distribution and activate the card themselves.

Different credit card issuers may have varying requirements or processes for adding an authorized user. For instance, minimum age requirements for authorized users can range from 13 to 18 years old, with some issuers having no specified age limit. It is advisable for the primary cardholder to consult their specific credit card issuer’s guidelines, often found through their online account portal or by contacting customer service, to understand any unique stipulations.

Steps to Add an Authorized User

The most common and often quickest method is through the credit card issuer’s online portal. This typically involves logging into the primary cardholder’s account, navigating to a section such as “Account Services,” “Manage Cards,” or “Add Authorized User,” and then inputting the previously collected personal details of the prospective authorized user. After entering the information, the primary cardholder will usually be prompted to review and confirm the addition, ensuring all details are accurate before submission.

Alternatively, adding an authorized user can often be done over the phone by contacting the credit card issuer’s customer service department. The customer service number is typically found on the back of the credit card or on the issuer’s official website. When calling, the primary cardholder should be prepared to verify their identity and provide all the authorized user’s details to the representative. This method can be helpful if there are any questions about the process or specific account features.

While less common for immediate processing, some credit card issuers may still offer the option to add an authorized user via mail. This usually involves obtaining a specific form from the issuer, either by downloading it from their website or requesting it by mail. The primary cardholder would then complete the form with the authorized user’s information, sign it, and mail it to the designated address provided by the issuer. This method typically has a longer processing time compared to online or phone additions.

Managing the Authorized User Account

After successfully adding an authorized user, the new credit card is typically mailed to the primary cardholder’s address within a few business days, though some issuers may send it directly to the authorized user. Upon receipt, the card usually needs to be activated before it can be used for purchases. Activation can often be completed online through the credit card issuer’s website, via a mobile app, or by calling a dedicated activation phone number provided on the card or its accompanying paperwork.

The impact on credit reporting is a significant aspect. When the credit card issuer reports authorized user activity to credit bureaus, the account’s payment history and credit utilization can appear on the authorized user’s credit report. Positive payment behavior, such as on-time payments and low credit utilization, can help the authorized user build or improve their credit score. Conversely, late payments or high balances on the account can negatively affect the credit scores of both the primary cardholder and the authorized user.

The primary cardholder should actively monitor the authorized user’s spending activity. Most credit card issuers provide online access to account statements, allowing the primary cardholder to view all transactions, including those made by the authorized user. Some issuers even offer features like real-time purchase notifications or the ability to temporarily lock or unlock an authorized user’s card. Maintaining open communication with the authorized user about spending habits and expectations is important to prevent unexpected charges or issues.

The primary cardholder retains financial responsibility for all account charges, regardless of who made the purchase. If an authorized user makes charges they do not repay, the primary cardholder is obligated to cover those expenses. This highlights the importance of adding only trusted individuals and establishing clear repayment agreements.