Yes, adding an authorized user can help them build credit, as long as the card issuer reports the account to the credit bureaus and the primary cardholder pays on time and keeps the balance low. The account then appears on the authorized user’s credit report, and its payment history and credit limit feed into their score. It works in both directions: late payments or a maxed-out balance will show up on their report too.
How does authorized user status build credit? #
An authorized user gets a card on someone else’s account. They can make purchases, but they aren’t legally responsible for the bill. That stays with the primary cardholder.
When the issuer reports the account to Equifax, Experian and TransUnion, it lists it on the authorized user’s report as well. Scoring models then factor it in:
- Payment history. A record of on-time payments on the account counts in their favor. Payment history is the largest part of a FICO score, per FICO.
- Utilization. The card’s limit adds to their total available credit. A high limit with a low balance lowers their overall utilization.
- Length of history. Depending on how the issuer reports, an older account can raise their average account age.
FICO and VantageScore both include authorized user accounts, while trying to discount “tradeline renting,” where people pay strangers to be added to old accounts. For spouses, partners and children, the benefit holds up.
Which issuers report authorized users, and at what age? #
Most major issuers report authorized users to all three bureaus. Their age rules differ:
| Issuer | Minimum age to add an authorized user |
|---|---|
| American Express | 13 |
| Discover | 15 |
| Chase | No stated minimum |
| Citi | No stated minimum |
| Capital One | Sources differ; ask the issuer |
Two cautions. First, “no minimum age to add” doesn’t always mean the bank reports the account for a minor. Some issuers are reported to hold off on reporting until the user turns 18. Second, issuers differ on whether they report the account’s full history or only the period since the user was added. Experian’s overview covers the general rules. Before adding someone to build credit, call the issuer and ask whether and when it reports authorized users.
What are the risks for each person? #
For the authorized user #
Benefits: a credit history without a hard inquiry or an application, and access to a card for agreed expenses.
Risks: if the primary pays late or runs the balance up, that shows on your report too. And lenders reviewing you for a mortgage or car loan can see you’re only an authorized user, so they may still want to see accounts in your own name.
For the primary cardholder #
Benefits: helping a family member get started, and any rewards they earn go into your account.
Risks: you’re responsible for every charge they make. Their spending also raises your utilization. If you’re planning Chase applications, an authorized user card on their report can count toward their 5/24, which matters if they want Chase cards later. See does authorized user status count toward Chase 5/24.
How do you add an authorized user safely? #
- Pick the right account. A card with a long, clean payment history, a high limit and a low balance. Adding someone to a card that’s often near its limit hurts them.
- Decide on spending first. The authorized user doesn’t need to use the card for it to help. Many parents add a teen and keep the card at home.
- Set a spending limit. Many issuers let you cap an authorized user’s monthly spending.
- Keep paying in full and on time. Everything you do on the account shows on their report.
- Keep an eye on the balance. Utilization is the number that moves most from month to month.
If you’re the primary on several cards, Credit Card Central shows wallet-wide utilization bands from the balances and limits you enter, so you can see when a household’s spending pushes you into a higher band. If you track a partner’s cards in the app too, labeling them as theirs keeps those cards out of your own 5/24 count. It works without bank logins.
How does an authorized user move to their own credit? #
Authorized user status is a starting point. After six to twelve months of positive history, many people can qualify for their own starter card:
- Secured cards, which use a refundable deposit as the credit limit.
- Student cards, for college students with thin files.
- Store cards, which are often easier to get but carry high APRs.
Once they have their own accounts reporting, the primary can remove them. The authorized user account may drop off their report, which can cause a small, temporary dip if it was their oldest or highest-limit line. For how many cards make sense after that, see how many credit cards is too many.
Frequently asked questions #
Does an authorized user have to use the card to build credit? #
No. The account’s history is reported whether or not the authorized user makes purchases. They don’t even need to have the physical card.
Can an authorized user hurt the primary cardholder’s credit? #
Only through spending. Charges they make raise the balance and the primary’s utilization, and the primary owes whatever they spend. They can’t miss a payment themselves, because paying is the primary’s job.
Does removing an authorized user lower their score? #
It can. Once the account drops off their report, they lose its history and limit. The effect is smaller if they’ve already built accounts of their own.
Can you build credit as an authorized user if the primary has bad credit? #
No. Late payments, high balances or defaults on the account can appear on the authorized user’s report. Only join an account that’s managed well.
Can I transfer credit card points to an authorized user? #
Some programs allow it. Chase lets you transfer points to a household member’s airline account if they’re an authorized user, and Amex allows transfers to an authorized user who’s had their card at least 90 days. See how to transfer Chase points to a family member.