Becoming an authorized user on someone else’s credit card can help build your credit history, but it isn’t always a good decision. If the primary cardholder carries high balances, misses payments or manages the account poorly, being associated with that account could negatively affect your credit score.
Before becoming an authorized user, it’s important to understand when the arrangement may do more harm than good and what to look for in an established credit card account.
When Should You NOT Be an Authorized User?
Not every credit card account is worth joining. Here are five situations where becoming an authorized user may be a poor choice.
1. The Primary Cardholder Has Missed Payments
Payment history is one of the most important credit-scoring factors. If the primary cardholder has a history of late payments, that negative information may appear on your credit report when the issuer reports the authorized user account.
Before being added, look for an established account with a consistent record of on-time payments.
2. The Credit Card Has High Utilization
Credit utilization measures how much of a credit card’s available limit is being used. An account carrying a large balance relative to its limit may negatively affect your credit profile.
For example, a card with a $10,000 limit and an $8,000 balance has 80% utilization. Even if the account is several years old, that high balance may make it less desirable.
3. The Account Holder’s Finances Are Unstable
As an authorized user, you generally don’t control how the primary cardholder manages the account. If their financial situation changes, missed payments or increasing balances could affect the information reported to your credit file.
This lack of control is worth considering, particularly when you’re relying on the account to contribute positive credit history.
4. The Card Issuer Doesn’t Report Authorized Users
Not every credit card issuer reports authorized user accounts to all three major credit bureaus. If the account isn’t reported to your credit file, it may provide no credit-scoring benefit.
As Experian explains, authorized user reporting practices vary by issuer. Confirm the reporting expectations before being added.
5. You’re Expecting Guaranteed Credit Results
Becoming an authorized user doesn’t guarantee a specific credit score increase or loan approval. Different scoring models and lenders may evaluate authorized user accounts differently.
According to myFICO, authorized user accounts can affect FICO Scores, but their treatment varies among scoring models.
When Does Becoming an Authorized User Make Sense?
An established authorized user account may be worth considering when it has:
- A strong history of on-time payments
- Low credit utilization
- An established account opening date
- A credit limit that complements your existing credit profile
- Clear reporting expectations
These characteristics may be particularly relevant for consumers with limited or relatively young credit histories. Our guide to how credit age affects your score explains why established account history matters.
Can You Remove Yourself as an Authorized User?
Generally, yes. Many credit card issuers allow authorized users to request removal, although the exact process varies.
Once removed, the account may stop appearing on your credit report. Any resulting score change depends on how the account previously affected your credit profile.
Learn more about what happens when authorized user tradelines are removed.
How Can You Choose a Better Authorized User Account?
If you’re considering becoming an authorized user, evaluate the account’s payment history, utilization, age and reporting characteristics before making a decision.
Some consumers ask a trusted family member to add them to an established account. Others consider purchasing authorized user placement through a tradeline company.
Our guide to buying tradelines safely explains what to review before purchasing an account.
Why Consider Coast Tradelines?
Coast Tradelines specializes in established authorized user credit card tradelines. Customers can compare available accounts by age, credit limit, utilization, price, purchase deadlines and expected reporting information.
Rather than selecting an account without understanding its history, customers can evaluate these characteristics and choose an option that better complements their existing credit profile.
Frequently Asked Questions
Can being an authorized user hurt your credit score?
Yes. High utilization or negative payment information may affect your credit when the account is reported.
Are authorized users responsible for credit card debt?
Generally, no. The primary cardholder remains contractually responsible for the account balance. An authorized user is not ordinarily responsible to the issuer for repayment.
Should you become an authorized user before applying for a mortgage?
Consider the account’s reporting history and your lender’s requirements. Mortgage lenders may evaluate authorized user accounts differently, so don’t assume an account will improve your financing eligibility.
Choose Authorized User Accounts Carefully
Becoming an authorized user can be helpful when the account has positive payment history, low utilization and established credit age. However, joining an account with unfavorable characteristics may work against your credit goals.
Coast Tradelines makes it easy to compare established authorized user accounts by age, credit limit, utilization, price and reporting information. Explore available tradelines and make a more informed decision about which account may fit your credit profile.
