Can Being an Authorized User Build Your Credit?
6 Min Read | Published: June 19, 2024
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Becoming an authorized user on someone else’s credit card could help you build credit, but this will depend on a few different factors.
At-A-Glance
- Being added as an authorized user can give you a chance to build credit, but you’ll want to make sure the primary account holder has good or excellent credit first.
- If you’d like to build credit, there are other steps you can take as well, like paying bills on time and keeping an eye on your credit.
- Healthy credit habits can help you build your credit score over time.
An authorized user is someone who is added to someone else’s credit card account. Becoming an authorized user can have a positive effect on your credit score, but this will depend on the primary account holder’s credit score and how well they manage credit.
In this article, we’ll look at the impact of being an authorized user, along with tips to help you build credit responsibly.
Can Being an Authorized User Improve Your Credit?
Being added as an authorized user to a friend or family member’s credit card could help your credit as well. If they have a good or excellent credit score, for example, and a history of making timely payments, that could positively impact your own credit report. Although how much of an impact it will have is hard to predict, and for the most part, is largely beyond your control.1
Keep in mind that being added to someone’s credit card is only one way to establish your credit. Since lenders and credit card issuers will typically want to see a history of on-time payments and you’re not required to make them as an authorized user, you should consider other ways to build your credit as well.
Did you know?
The primary account holder’s credit score will not be impacted just by adding an authorized user to the account.2 However, one way their credit could be impacted is if they are unable to cover the authorized user’s charges.
Can Being an Authorized User Negatively Impact Your Credit?
It’s important to note that while authorized user status may help your credit, it can also negatively impact your score if the primary cardholder doesn’t manage credit responsibly.
For example, your credit score may take a hit if they have bad credit or pay their credit card bills late. Unfortunately, you don’t have control of the primary cardholder’s actions and may face a lower credit score as a result of poor decisions they make.3
Who Should You Ask to Add You As an Authorized User?
If you do decide to become an authorized user on someone else’s credit card, be sure to choose a trustworthy family member or friend. Ideally, they should also have a good to excellent credit score.4 They should also practice good credit habits, which includes paying their bills on time and keeping their credit utilization ratio low. Be selective about who you pick as putting yourself on the wrong person’s account can hinder your credit score.5
Other Ways to Build Credit
Getting added to another person’s credit card account is one way to build credit. Here are a few other strategies you might want to explore:6
- Look Into a Secured Credit Card
You can use a secured credit card like a traditional credit card. The difference, however, is that you’ll make a security deposit that will be refunded to you once you pay your balance and close your account. Making payments on time and using the card responsibly can positively impact your credit over time. - Consider Applying for a Store Card
Store cards can be used at certain stores or retailers. You can get approved for one, even if you have no credit or bad credit. Using the card responsibly may positively impact your credit, as long as the store reports to the credit bureaus.
How to Build Credit As an Authorized User
If you’re an authorized user, here are some steps that you can take to proactively manage your credit:
- Build Positive Credit Habits
Work to build positive credit habits. This includes paying your bills on time. Even one late payment could potentially hurt your credit score. You’ll also want to work out a payment plan with the primary account holder. They will be responsible for paying any bills but you should ensure that you hold up your end of the bargain and pay them for any purchases that you make in a timely manner. - Take Care When Getting Added to an Account
It’s a good idea to ask to be added as an authorized user on someone’s account who has good or excellent credit. That’s because their financial behavior can impact your own. - Check Your Credit Score Regularly
Keep tabs on your credit score so that you always know where you stand. It’s a good idea to do this after you’ve been added as an authorized user so that you can see the impact that it may have had. You can find a free credit monitoring service online or check your credit score through your credit card provider.
Frequently Asked Questions
You may not have to pay anything to be added as an authorized user on another person’s account. Some credit card issuers, however, will charge an authorized user fee.7
If you’d like to become an authorized user, the primary cardholder will need to add you to their account. Depending on the credit card issuer, they may be able to do this online, via phone, or on the company’s mobile app.8
With a joint credit card account, both parties are equally liable for making payments. An authorized user, however, is not responsible for paying the credit card.9
The Takeaway
Becoming an authorized user on someone else’s credit card can help you build your credit, depending on their credit score and how they manage credit. However, it’s a good idea to pair this with other credit-building strategies as well.
1,3,7,9 “Does Being An Authorized User Build Credit?,” Forbes
2,5,6 “Does Being an Authorized User Affect Your Credit?,” Credit Karma
4,8 “What You Need to Know About Being an Authorized User on a Credit Card,” CNBC
Anna Baluch is a personal finance writer from Cleveland, OH. She enjoys helping people from all walks of life make smart financial decisions. Her work can be seen on Credit Karma, Forbes, LendingTree, Insurify, and many other publications. Connect with Anna on LinkedIn.
All Credit Intel content is written by freelance authors and commissioned and paid for by American Express.
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