How Authorized Users Work on Credit Cards
An authorized user is someone you give permission to use your credit card account, even though you're the one legally responsible for paying the bill
When you add an authorized user, that person gets their own card linked to your account. They can make purchases, but the bill comes to you. The card company reports their activity to credit bureaus under your account, which means their spending affects your credit score and their credit history. You stay in control — you can remove them anytime, set spending limits on some cards, and see all their transactions.
This is different from a joint account holder, who has equal legal responsibility for the debt. An authorized user has no obligation to pay anything. It's also different from giving someone your card to borrow — an authorized user gets their own physical card and can use it whenever they want.
Key Takeaways
- You remain the account owner and are legally responsible for all charges, whether you made them or the authorized user did.
- The authorized user's spending shows up on your credit report and can raise or lower your credit score depending on how they use the card.
- Most card issuers let you set a spending limit for an authorized user, though not all do.
- Adding an authorized user typically costs nothing, and you can remove them at any time with a phone call.
- An authorized user's activity may help build their credit history if the card issuer reports to the credit bureaus.
Why people add authorized users
Parents often add teenagers or young adults to build their credit history. Since the authorized user's activity gets reported to credit bureaus, using the card responsibly can help them establish a credit score before they apply for their own card or loan.
Spouses or partners may add each other for convenience — so both can pay for household expenses without needing to ask permission or carry multiple cards. Some people add a trusted family member to manage bills if they become ill or unable to handle finances themselves.
Business owners sometimes add employees as authorized users on a business card, though this is less common than it used to be — most now use dedicated business card programs or expense management software instead.
How the credit reporting works
When you add an authorized user, the card issuer reports the account to the credit bureaus in both your name and theirs. This means the authorized user gets credit for on-time payments and a lower credit utilization ratio if the card has a high limit. But they also get dinged if you miss a payment or carry a high balance.
The authorized user's own credit score can improve just from being on the account, even if they never use the card. However, if they do use it and you pay late or max out the card, their score drops along with yours. This is why adding someone to your account is a decision that affects both of you.
Not every card issuer reports authorized user activity to all three credit bureaus. Some report to only one or two. If building credit is your goal, ask the card issuer before adding the authorized user whether they report to Equifax, Experian, and TransUnion.
What happens if an authorized user overspends
You are responsible for every charge the authorized user makes, even if you didn't approve it. If they spend $5,000 and you only authorized $500, you still owe the full $5,000. The card issuer will not pursue the authorized user for payment — they will pursue you.
This is why spending limits matter. Many card issuers let you set a cap on how much an authorized user can spend per transaction or per month. If they try to spend over the limit, the card declines. However, not all issuers offer this feature, so check with yours before adding someone.
If an authorized user makes fraudulent charges — meaning they used the card without your permission — you can dispute those charges with the card issuer. But if you gave them permission to use the card, even verbally, the issuer will likely treat it as an authorized charge you owe.
How to add or remove an authorized user
Call the phone number on the back of your credit card or log into your online account to add an authorized user. You'll need to provide their name, date of birth, and sometimes their address. The process usually takes a few minutes. The card issuer will mail a card in the authorized user's name to the address you provide, which typically arrives within 7 to 10 business days.
Some card issuers let you add an authorized user online through their app or website. Others require a phone call. A few still require you to visit a branch in person, though this is rare for credit cards.
To remove an authorized user, call the card issuer or use your online account. Removal is immediate — the card stops working right away. The account history stays on both your credit report and theirs, so removing someone doesn't erase the damage if they missed payments or ran up a balance.
Authorized users and your credit score
Adding an authorized user with a high credit limit and a good payment history can slightly improve your credit score, because it lowers your overall credit utilization ratio. If you have a $10,000 limit and spend $2,000, your utilization is 20 percent. If you add an authorized user and the limit becomes $20,000 (some issuers raise limits when you add users, though not all), your utilization drops to 10 percent, which looks better to credit scoring models.
But if the authorized user spends heavily or you miss payments, your score drops. The damage is the same whether you made the charges or they did — the credit bureaus only see the account activity, not who caused it.
Removing an authorized user does not immediately boost your score. The account history remains on your credit report for seven years (for negative marks) or indefinitely (for positive marks). However, future activity on the account will only reflect your own behavior, not theirs.
When authorized user status might not help
Some card issuers do not report authorized user activity to credit bureaus at all. If building credit is your goal, this makes adding someone pointless from a credit perspective. Call the issuer and ask whether they report authorized users to the bureaus before you add someone.
A few card issuers charge a fee to add an authorized user, though this is uncommon. Most charge nothing. If a card charges a fee, it's usually $25 to $50 per authorized user per year.
If the authorized user is a minor, some issuers will not issue them a physical card. Instead, they may issue a virtual card number or require the minor to be at least 13 or 16 years old. Check your card issuer's policy if you're adding a child.
Frequently Asked Questions
Can an authorized user see my full account balance and payment history?
That depends on the card issuer. Some give authorized users access to the full account online, including your payment history and current balance. Others show only transactions the authorized user made. Call your card issuer to find out what they can see, and ask whether you can limit their access if you want privacy.
What if I add someone as an authorized user and then they damage my credit?
You can remove them immediately, but the damage to your credit score stays on your report. If they made fraudulent charges, you can dispute those with the card issuer. If they made legitimate charges and you paid late or carried a high balance, that negative history remains for seven years. This is why it's important to only add people you trust completely.
Does being an authorized user hurt my chances of getting my own credit card?
No. Being an authorized user does not prevent you from opening your own account. In fact, if the account you're on has a good payment history and low balance, it may help your credit score and make it easier to get approved for your own card.
Can I add an authorized user to a secured credit card?
Most secured card issuers allow authorized users, though some do not. Call your card issuer to ask. If they do allow it, the authorized user's activity is reported to credit bureaus the same way it is on a regular card.
What's the difference between an authorized user and a co-signer?
An authorized user has no legal responsibility for the debt. A co-signer on a loan or credit application is legally responsible and can be pursued for payment if you don't pay. Authorized users are for existing accounts; co-signers are typically used when opening a new account or loan.