Authorized user status is a powerful credit-building tool. Here's how to use it effectively.
What Is an Authorized User?
An authorized user is someone added to another person's credit card account. You can use the card, but aren't legally responsible for the debt.
How It Helps Your Credit
When you're added as an authorized user:
- The account's history appears on your credit report
- You inherit the card's payment history
- The credit limit adds to your available credit
Ideal Authorized User Accounts
Look for accounts with:
- Long history (5+ years)
- Perfect payment history
- Low utilization (under 30%)
- High credit limit
- Issuer that reports authorized users
Credit Score Impact
Being added to the right account can boost your score by 30-50+ points within 30-60 days.
Who to Ask
Consider asking:
- Parents
- Spouse
- Siblings
- Close friends
- Other trusted family members
Important Considerations
You Don't Need the Card
You can be added as an authorized user without ever receiving or using the card.
Their Debt Doesn't Transfer
You're not responsible for paying the balance, though late payments will affect your score.
You Can Be Removed Anytime
Either party can request removal at any time.
Pitfalls to Avoid
- Being added to accounts with late payments
- High utilization accounts
- Accounts about to be closed
- Cards from issuers that don't report authorized users
Which Issuers Report Authorized Users?
Most major issuers report, including:
- American Express
- Bank of America
- Capital One
- Chase
- Discover
- Citi
Alternative: Credit-Builder Strategies
If authorized user isn't an option:
- Secured credit cards
- Credit-builder loans
- Rent reporting services
Need Credit Building Help?
Pioneer Credit Solution offers comprehensive credit building. Call 1-888-271-2293.