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What Happens to Your Credit When You're an Authorized User?



Becoming an authorized user on someone else's credit card is a powerful and accessible way to begin building credit, especially for those with little to no credit history. It allows you to leverage another person's good financial habits to build your own credit profile. However, this strategy is not without its risks and requires trust and clear communication. Understanding how it works is key to making it a successful part of your credit-building plan.

For a comprehensive overview of the credit-building process and other strategies, read our guide, A Complete Guide to Building and Rebuilding Credit with a Credit Card.

How authorized user status works

When you are added as an authorized user, the primary cardholder essentially gives you permission to use their credit account. While the account remains the primary holder's responsibility, the card issuer reports the account's history to the credit bureaus under both your name and the primary cardholder's.

  • The benefit: You benefit from the primary user's positive payment history and low credit utilization, which can lead to a credit score increase.

  • The risk: If the primary cardholder misses a payment or carries a high balance, that negative information can also be reported to the credit bureaus and negatively affect your credit score.

    • Key factors for success as an authorized user

    To make this strategy work for you, you must be deliberate in your approach.

  • Choose a trustworthy primary cardholder: This is the most important step. The primary cardholder should have excellent credit, a long history of on-time payments, and a low credit utilization ratio.

  • Check that the issuer reports to all bureaus: Not all card issuers report authorized user activity to all three credit bureaus. Make sure you choose a card that does to maximize your credit-building impact.

  • Set clear expectations: Agree on clear terms with the primary cardholder regarding spending, payment responsibilities, and communication. This will prevent misunderstandings and protect both parties' credit.

  • Monitor your credit: Regularly check your credit report to ensure the authorized user account is being reported correctly and that your score is benefiting from the primary holder's good financial behavior.

    • The benefits of becoming an authorized user

    When done correctly, becoming an authorized user can provide significant benefits.

  • Boosts your credit score: The primary cardholder's positive payment history and low utilization can quickly boost your credit score.

  • Builds credit history: You can establish a credit history without having to open a separate credit card account or pay a security deposit.

  • Helps with credit mix: For those with limited credit, authorized user status can help diversify their credit mix, showing they can manage different types of credit responsibly.

  • Accelerates the credit-building process: By leveraging an existing, well-managed account, you can build credit much faster than by starting from scratch.

    • The risks of becoming an authorized user

    While the benefits are significant, it is crucial to be aware of the risks.

  • The primary user's mistakes are your mistakes: If the primary cardholder's credit behavior changes for the worse, your credit score will also be negatively impacted.

  • Limited control: You have no control over the primary cardholder's spending or payment habits.

  • Dependent on the primary: The authorized user account will be removed from your credit report if the primary cardholder decides to remove you from the account.

    • How to use authorized user status in your overall strategy

    Becoming an authorized user is often best used as a temporary or supplementary tool for building credit.

  • Use it as a starting point: For those with no credit history, authorized user status can be a great way to establish a credit file before applying for your own secured or unsecured card.

  • Combine with other strategies: You can use authorized user status in conjunction with other credit-building tools, such as a secured card or a credit-builder loan, to accelerate your progress.

  • Transition to your own card: As your credit score improves, you should eventually apply for and manage your own credit card to build a robust and independent credit history.

    • Related credit card articles

  • A Complete Guide to Building and Rebuilding Credit with a Credit Card

  • How to Use Secured Credit Cards Effectively for Credit Building

  • How to Graduate from a Secured to an Unsecured Credit Card

  • How Your Credit Card Affects Your Credit Score





    • Found this guide helpful? Bookmark it for future reference as you continue your financial journey!

    Experian Boost: A Comprehensive Guide to Boosting Your Free Credit Score

    FICO Credit Scores

    A credit score is a number generally between 300-850, based on a statistical analysis of a person's credit files. This score represents the credit worthiness of a person. A credit score is assigned to each individual, to rate how risky a borrower he or she is--the higher the score, the less risk the individual poses to creditors. In most cases, your credit score will determine whether you will be approved for a credit card.

    What is a Credit Score?

    A credit score is a number generally between 300-850, based on a statistical analysis of a person's credit files. This score represents the credit worthiness of a person. A credit score is assigned to each individual, to rate how risky a borrower he or she is--the higher the score, the less risk the individual poses to creditors. In most cases, your credit score will determine whether you will be approved for a credit card.

    Credit Score Facts

    1. Credit Scores range from 300-850, the higher the better.
    2. Most lenders base approval on your credit score.
    3. Higher Scores mean lower payments and better deals.
    4. Higher Scores mean Lower interest rates.
    5. Scores are determined by 5 main categories:
      • Payment History
      • Amounts Owed
      • Length of Credit History
      • Type of Credit Used
      • New Credit

    Note: Credit scores are used to represent the creditworthiness of a person and may be one indicator to the credit type you are eligible for. However, credit score alone does not guarantee or imply approval for any credit card product.


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