Many credit cards allow the primary cardholder to add an authorized user to the account. If you're an authorized user, the primary cardholder has given you permission to use their account. As an authorized user, you’ll receive your own credit card with your name and can make purchases as though it were your account.
Let’s explore what an authorized user is, their responsibilities, how to add and remove authorized users and how being an authorized user may impact your creditworthiness.
What is an authorized user responsible for?
An authorized user is not responsible for making payments to the credit card company. While they can make purchases on a card, the responsibility for making payments toward the card’s balance remains with the primary cardholder.
However, an authorized user may want or be asked to set up an arrangement with the primary cardholder to cover their own charges if they plan to actively use the card. Being financially accountable for their purchases can help the authorized user build responsible spending and financial habits.
How to add an authorized user
The process to add an authorized user may vary by credit card company and type of card. Generally, the process is straightforward. The credit card issuer may have a specific age requirement, but otherwise it is up to the primary cardholder to decide whether they want to add the authorized user. The primary cardholder can typically either go to their card’s online account or call customer service to add the authorized user.
Certain cards may charge an annual fee for an authorized user. These additional fees for authorized users are more typical on credit cards with premium rewards and high annual fees that the primary cardholder pays to keep the account open.
How to remove an authorized user
Removing an authorized user is usually simple. The process may vary depending on the credit card or card issuer, but the authorized user may be able to remove themselves from the account by contacting the credit card company directly. Some credit card issuers may require the primary cardholder to request that the authorized user be removed.
Primary cardholders can sometimes remove the authorized user on their online credit card account or instead over the phone with customer service.
Can being an authorized user impact your credit?
Being an authorized user may impact your credit. If the credit card company reports authorized users to the 3 major credit bureaus, becoming an authorized user can impact your credit. If the credit card company does not report authorized user activity to the credit bureaus, there will be no effect on your credit. If you’re unsure whether the card issuer reports authorized users to credit bureaus, contact the credit card company.
Assuming the card issuer reports authorized users, if the primary cardholder has good financial habits and demonstrates responsible credit use, being an authorized user can help build credit history. Their good spending habits and credit history can positively impact an authorized user’s creditworthiness.
On the other hand, if the primary cardholder has poor spending habits and does not pay their credit card bill on time each month, this can negatively impact an authorized user’s creditworthiness.
Disclosure: This article is for educational purposes. It is not intended to provide legal, investment, or financial advice and is not a substitute for professional advice. It does not indicate the availability of any Citi product or service. For advice about your specific circumstances, you should consult a qualified professional.
