What an Authorized User Is
An authorized user is someone who has permission to use a credit card account that belongs to someone else — usually a family member or spouse. The cardholder (the person whose name is on the account and who is legally responsible for the bill) adds you to their account. You get your own card with your name on it, and you can make purchases up to whatever limit the cardholder sets or the card issuer allows.
The key point: you are not responsible for paying the bill. The cardholder is. The credit card company sends one bill to the cardholder, and they pay it. You do not sign any contract, and you do not have legal liability for the debt.
Being an authorized user is different from being a joint account holder. A joint account holder is also legally responsible for the debt and can make changes to the account. An authorized user cannot change the credit limit, close the account, or access account statements unless the cardholder gives them permission to do so.
Key Takeaways
- An authorized user can use the cardholder's credit card but is not legally responsible for paying the bill.
- The cardholder controls the account, sets spending limits, and receives all bills and statements.
- Being added as an authorized user may help build your credit history if the card issuer reports authorized user activity to the credit bureaus.
- Not all card issuers report authorized user accounts to credit bureaus, so check with the cardholder's bank before relying on this for credit building.
- You can be removed as an authorized user at any time, and the cardholder can set restrictions on how much you can spend.
How Authorized User Status Affects Your Credit
When you are added as an authorized user, the cardholder's account history may show up on your credit report — but only if the card issuer reports it to the three major credit bureaus (Equifax, Experian, and TransUnion). Not all issuers do this. Some report authorized user accounts; others do not.
If the issuer does report it, the account's payment history, credit limit, and balance all become part of your credit file. This means a long history of on-time payments on that account can raise your credit score. A history of late payments or high balances can lower it. You benefit from the cardholder's responsible use, or you suffer from their mistakes.
Before you agree to be added as an authorized user, ask the cardholder to check with their bank whether authorized user accounts appear on credit reports. You can also call the card issuer yourself and ask. If they do not report it, being an authorized user will not help your credit score at all.
Why Cardholders Add Authorized Users
Parents often add teenagers or young adults as authorized users to teach them how to use credit responsibly while keeping control of the account. The parent can set a spending limit, monitor purchases, and see the statement each month.
Spouses add each other to share household expenses and simplify bill payment. Some people add authorized users to help someone with no credit history build a credit file — for instance, a newly arrived immigrant or a young adult with no prior credit activity.
In some cases, a cardholder adds an authorized user to take advantage of a sign-up bonus or rewards program. The authorized user's purchases count toward the cardholder's rewards, but the cardholder still pays the bill.
What You Can and Cannot Do as an Authorized User
As an authorized user, you can use the card to make purchases at stores, online, or over the phone. You can see your own transactions if the cardholder shares the statement with you. You cannot change the credit limit, add or remove other authorized users, close the account, or request a different card design (unless the cardholder gives you permission).
The cardholder can set restrictions. Some card issuers allow cardholders to set a spending cap for each authorized user — for example, $500 per month. The cardholder can also see all your purchases on the statement and can remove you from the account at any time without your permission.
You have no legal right to the account. If the cardholder dies, the account typically closes, and you lose access to the card. If the cardholder and you have a falling out, they can remove you when ready.
When Being an Authorized User Helps Your Credit
Being an authorized user helps your credit score only if three things are true: the card issuer reports authorized user accounts to the credit bureaus, the cardholder pays on time, and the account has a low balance relative to its credit limit.
This is most useful if you have no credit history or a damaged credit history. A few months of positive payment history on a high-limit account can raise a low score noticeably. If you are rebuilding credit after missed payments or a collections account, being added to a well-managed account can help offset that damage.
It is less useful if you already have good credit. Adding another account to your file may raise your score slightly, but the benefit is usually small.
Risks and Downsides of Being an Authorized User
The main risk is that you have no control over the account but your credit is affected by it. If the cardholder misses a payment, that late payment appears on your credit report even though you did not miss it. If the cardholder runs up a high balance, your credit utilization ratio goes up, which can lower your score.
You also have no legal protection if the cardholder disputes a charge or if the card is used fraudulently. The cardholder owns the account and makes those decisions. If you made a purchase the cardholder later regrets, they can dispute it with the bank, and you have no say in the outcome.
Another risk: if the cardholder has a poor credit history or misses payments, being added to their account can hurt your credit score instead of helping it. Before you agree, make sure the cardholder has a track record of paying on time and keeping balances low.
How to Become an Authorized User
The cardholder calls their bank or goes online to their account and requests to add an authorized user. They provide your name, date of birth, and sometimes your Social Security number. The bank verifies the information and issues a card in your name.
The process usually takes a few days to a week. The card arrives in the mail. You can start using it as soon as you receive it, or the cardholder can set up it online.
Some card issuers allow you to be added without a hard credit inquiry, which means it does not affect your credit score at the moment you are added. However, as mentioned above, the account history will show up on your credit report going forward if the issuer reports it.
How to Remove Yourself as an Authorized User
If you want to stop being an authorized user, you can ask the cardholder to remove you. They contact their bank and request your removal. The process is quick — usually a phone call or a few clicks online.
Once you are removed, you can no longer use the card. The account will remain on your credit report for a period of time (usually seven years for positive accounts, longer for negative ones), but it will stop affecting your credit score as actively once it is closed or inactive.
If the cardholder refuses to remove you and you want to sever the connection, you have limited options. You cannot remove yourself directly; only the cardholder can do that. You can destroy your card and stop using it, but the account will still appear on your credit report.
Frequently Asked Questions
Will being an authorized user hurt my credit if the cardholder misses a payment?
Yes, if the card issuer reports the account to the credit bureaus. A late payment on the account will appear on your credit report and lower your score, even though you did not miss the payment yourself. This is why it is important to be added only to an account with a strong payment history.
Can I be held responsible for the debt if the cardholder does not pay?
No. As an authorized user, you are not legally responsible for the bill. The cardholder is. If the account goes to collections, the debt collector can pursue the cardholder, not you. However, the account history will still appear on your credit report and affect your score.
Does being an authorized user show up on my credit report right away?
Not always. It depends on the card issuer. Some report authorized user accounts to the credit bureaus within a month or two; others never report them. Ask the cardholder to check with their bank about their reporting practices before you are added.
What happens to my credit if I am removed as an authorized user?
The account will remain on your credit report for several years, but it will no longer actively affect your score once it is closed or marked as inactive. The positive or negative history you built while on the account stays in your file.
Can I use an authorized user account to build credit if I have no credit history?
Yes, if the card issuer reports it to the credit bureaus. Being added to an established account with a long payment history and low balance can help you build a credit file from scratch. However, you will need to be added to an account in good standing for this to work.