Which Credit Card Companies Report Authorized Users?
Uncover the reporting policies of credit card companies for authorized users and learn to verify their impact on your credit history.
An authorized user is an individual permitted by a primary cardholder to use their credit card account. The authorized user can make purchases, but the primary cardholder remains solely responsible for all charges and the account balance. How credit card companies report this activity significantly influences an authorized user’s credit history and score.
Understanding Authorized User Reporting
Credit card issuers typically report authorized user account activity to the three major consumer credit bureaus: Experian, Equifax, and TransUnion. This reporting generally includes key data points such as the account’s payment history, the credit limit, and the current balance. This allows the authorized user to benefit from the primary account’s positive financial management, which can help in establishing or improving their own credit profile.
When an account is reported, it appears as a tradeline on the authorized user’s credit report, reflecting the primary account’s activity. This means that consistent, on-time payments and a low credit utilization ratio on the primary account can positively impact the authorized user’s credit scores. Conversely, late payments or high balances on the primary account can negatively affect the authorized user’s credit report.
Credit Card Companies Reporting Authorized Users
Many prominent credit card companies routinely report authorized user activity to the major credit bureaus, which can be beneficial for individuals looking to build or improve their credit history. American Express, for instance, generally reports authorized user information, typically requiring the authorized user to be at least 18 years old, although they can be added as young as 13. Chase also reports authorized user activity to credit reporting agencies, noting that this can impact an authorized user’s credit score.
Capital One is another major issuer that reports authorized user information to all three credit bureaus, emphasizing that this can help build someone’s credit history. Similarly, Citi reports authorized user details to Equifax, Experian, and TransUnion, reflecting the account’s activities on the authorized user’s credit report. Discover reports account credit history for both the primary cardholder and the authorized user to all three major credit bureaus, requiring authorized users to be at least 15 years old.
Bank of America also reports authorized user activity, sharing their details with Equifax, Experian, and TransUnion. Other issuers like Wells Fargo and U.S. Bank are also known to report authorized user data, often with age requirements such as 18 years for Wells Fargo and 16 years for U.S. Bank. These reporting practices enable authorized users to potentially benefit from the primary account’s responsible usage, as positive account management can contribute to a stronger credit profile.
Credit Card Companies Not Reporting Authorized Users
While many major credit card issuers typically report authorized user activity, it is not a universal practice. Credit card companies are not legally obligated to report authorized user information to credit bureaus, and their reporting policies can vary or change. Smaller financial institutions, regional banks, or certain store-specific credit cards may not report authorized user activity.
Even among issuers that generally report, there can be specific conditions under which an authorized user’s account may not appear on their credit report. For example, if a Social Security Number (SSN) for the authorized user is not provided during the setup process, some issuers may not report. Additionally, if the primary account becomes delinquent or exhibits negative activity, some issuers may cease reporting the authorized user’s information or remove the account from their report to mitigate negative impact on the authorized user.
Therefore, if the primary goal of becoming an authorized user is to build credit, it is important to confirm the specific reporting policies directly with the credit card issuer beforehand. This ensures that the authorized user arrangement aligns with their credit-building objectives.
Checking Your Authorized User Status
To determine if your authorized user activity is being reported to credit bureaus, obtaining copies of your credit reports is a first step. You can access free copies of your credit reports from each of the three major nationwide credit bureaus—Experian, Equifax, and TransUnion—once every 12 months through AnnualCreditReport.com. This centralized website is authorized by federal law and provides a secure way to request your reports.
Once you have received your credit reports, carefully review each one for tradelines, which are entries representing credit accounts. Look for accounts where you are listed as an authorized user. This information typically includes the account type, the credit limit, the account balance, and a payment history. If the authorized user account is being reported, it should appear under your name, similar to a primary account you might hold.
If an authorized user account you expect to see is not present, or if there are inaccuracies, you have the right to dispute this information directly with the credit bureau. Each credit report will include instructions on how to initiate a dispute. While the primary cardholder is ultimately responsible for the account, monitoring your authorized user status ensures that your credit report accurately reflects your credit history.