How Does Being an Authorized User Help Build Your Credit Score?

Gaining authorized user status on someone’s credit card account can benefit both parties, especially parents and their children.

What is an Authorized User?

By becoming an authorized user on someone else’s credit card—be it a parent, guardian, or other trusted adult—the credit card issuer will send a credit card to the primary cardholder having your name appear on the card.

How Does Being an Authorized User on a Credit Card Work?

If you’ve got no history with a card issuer or any other line of credit to your name, serving as an authorized user can lend some support to building your credit file.

What are the Pros and Cons of Being an Authorized User?

- Being an authorized user can help a person build or restore their credit if they get added as an authorized user on a credit card of someone with an excellent (or better) credit history. - The primary cardholder remains fully responsible for all credit card charges, payments, and liability. - Adding an authorized user account doesn’t cost money in most cases. - Credit history as an authorized user gets reported to all three credit bureaus, improving credit scores over time if the primary cardholder makes card payments on time to the credit card issuer.

Authorized User Pros

What are the Pros and Cons of Being an Authorized User?

- You can remove an authorized user from the credit card account at any time. - You can negatively impact an authorized user based on poor user activity from the primary cardholder. -You have no guarantee of an authorized user seeing a quick credit improvement—if at all.

Authorized User Cons

Do Debit Cards for Kids Help Build Credit?

You can use a prepaid card like a credit card, but it won’t necessarily build credit like one. Some debit cards for kids and teens do offer the ability to run them as credit cards when processing payments, acting as a means for building credit history and your credit scores.

What is a Credit Score?

A credit score is a number that predicts how likely you are to repay borrowed money. It’s a three-digit numerical representation of the information in your credit report, managed by credit bureaus like Equifax, Experian, and TransUnion.

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