Will Having Authorizer User Status Help Build Your Credit Score?
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.
What is an Authorized User?
Authorized users don’t hold responsibility for paying the balances due on credit cards, meaning when you become an authorized user, it has a limited effect on your credit.
How Does Being an Authorized User on a Credit Card Work?
- 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.
Authorized User Pros
- 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.
Authorized User Cons
For an account to impact your credit scores, it needs to count as debt or liability. To build good credit, you need to make regular payments on these debts over long periods. This factor plays the most significant role in building your credit.
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