What Is an Authorized User? The Credit Hack No One Talks About

August 31, 2025 • Building Credit

Many people hear about “becoming an authorized user” as a way to build credit—but what does that actually mean?

An authorized user is someone who is added to another person’s credit card account and has permission to use the card without being responsible for repayment.

This matters because it can affect a person’s credit history, access to credit cards, and overall financial goals. Done right, it can be a powerful tool for building or rebuilding credit. Done wrong, it can cause more harm than good.

In this article, we’ll explain what an authorized user is, how it works, the benefits and risks, and what alternatives are worth considering.

What an Authorized User Is

An authorized user is a person who is added to another person’s credit card account. They are allowed to make purchases with the card but are not legally responsible for paying the balance.

It’s important to understand the difference between an authorized user and the primary account holder. The primary account holder owns the account, manages payments, and is responsible for the debt. The authorized user simply has access to the card and the account’s history on their credit report.

People add authorized users for several reasons:

Credit building: Parents may add children to help them start building a credit history.
Shared expenses: Couples may use this setup to streamline household purchases.
Convenience: Families may add members to simplify travel or recurring expenses.

How Being an Authorized User Works

Adding an authorized user is usually straightforward. The primary account holder contacts the credit card issuer—either online or by phone—and provides the personal details required, such as name, date of birth, and in most cases, a Social Security number.

Authorized users can use the credit card to make purchases, but they usually cannot make account changes, request limit increases, or remove late fees. They are also not legally required to pay the balance.

Most credit card issuers report authorized user activity to the three major credit bureaus. This means the account’s payment history, credit utilization, and overall status often show up on the authorized user’s credit report. However, not every bank reports authorized user accounts, so it’s important to confirm before relying on it for credit building.

How Being an Authorized User Helps You Build Credit

Becoming an authorized user can help build a credit history, but only when the account is managed responsibly and reported to the credit bureaus.

When it helps: If the primary account holder pays on time and keeps balances low, the positive history may improve the authorized user’s credit score.
When it doesn’t help: If the credit card issuer does not report authorized user accounts, or if the account has late payments or high balances, the effect could be negative.

Credit scoring models handle authorized user accounts differently:

FICO credit scores: FICO usually includes authorized user accounts in scoring, though it may discount them if the system detects they are only being used to artificially boost credit.
VantageScore credit scores: VantageScore also includes authorized user accounts and tends to weigh them more consistently in its models.

Pros & Cons of Becoming an Authorized User

Becoming an authorized user can offer meaningful benefits, but it also comes with risks. Before deciding, it’s important to weigh both sides.

Pros

Credit building: A quick way to start or strengthen a credit history when the account is in good standing.
Access to credit card perks: Rewards programs, travel benefits, or purchase protections may extend to the authorized user.
No responsibility for debt: The authorized user is not legally obligated to repay the balance.
Financial learning tool: Parents can use it to teach teenagers or young adults how to manage credit responsibly.

Cons

Credit damage potential: Late payments or high balances from the primary account holder may hurt the authorized user’s credit score.
Limited control: Authorized users cannot remove negative marks from their credit report without cooperation from the primary account holder.
Relationship strain: Money and trust issues may arise if spending habits differ.
No guarantee of credit improvement: If the issuer does not report authorized user accounts, or if the account has negative history, the benefit may be limited.

Authorized User vs. Joint Account Holder vs. Co-Signer

It’s easy to confuse these roles, but each one comes with different levels of responsibility and impact on credit.

Feature	Authorized User	Joint Account Holder	Co-Signer
Legal responsibility for debt	No	Yes (shared)	Yes (guarantees repayment)
Credit building	Often, if reported	Yes	Yes
Spending access	Yes	Yes	No (unless also cardholder)
Control over account	Limited	Equal	None

These distinctions matter because choosing the wrong setup can lead to unexpected financial obligations. An authorized user can benefit from a positive credit history without risk of debt, while joint account holders and co-signers take on full legal responsibility.

How to Add or Become an Authorized User

Adding an authorized user is a straightforward process with most credit card issuers. The primary account holder usually provides the person’s name, date of birth, and Social Security number, either through an online form or by calling customer service.

Issuers often have minimum age requirements for authorized users, which can range from 13 to 18 years old. Once added, the account typically appears on the authorized user’s credit report within 30 to 60 days, depending on the issuer’s reporting schedule.

Best Practices for Authorized Users and Primary Cardholders

Success with this strategy depends on trust and responsible credit management.

For primary account holders: keep balances low, make on-time payments, and monitor activity regularly to prevent misuse.
For authorized users: communicate clearly with the account holder, avoid overspending, and review your credit report to ensure the account is reported accurately.

If problems arise, either party can request removal. Once removed, the account will stop reporting to the authorized user’s credit report, which may affect their credit history.

Alternatives to Becoming an Authorized User

Becoming an authorized user isn’t the only way to build credit. Several alternatives offer more independence and control.

Secured credit cards: Secured cards require a cash deposit that acts as the credit limit. Payments are reported to the credit bureaus and can build credit over time.
Credit builder loans: Credit builder loans are small loans designed for credit building. Payments are placed in a savings account until the loan is repaid, then released to the borrower.
Student credit cards: Student credit cards are designed for people new to credit, often with lower limits and educational resources.

Feature	Authorized User	Secured Credit Card	Credit Builder Loan
Requires deposit	No	Yes	Yes
Legal responsibility for debt	No	Yes	Yes
Builds credit	Often, if reported	Yes	Yes
Spending access	Yes	Yes	No (funds released at end)

Final Thoughts

Becoming an authorized user can be a smart way to build credit quickly, especially for someone with little to no credit history. It offers access to the account’s positive payment record without the risk of debt responsibility.

Still, the strategy only works when the primary account holder manages the card responsibly. Late payments, high balances, or poor communication can turn a credit-building opportunity into a setback.

If you’re considering this option, weigh the pros and cons, discuss expectations with the account holder, and explore alternatives like secured credit cards or credit builder loans. That way, you’ll have a plan that supports long-term financial growth.