If you are trying to help them establish a credit score or better their score, you should check with your credit card company to make sure they do. Nevertheless, some credit card companies may report on their bureaus as well. An authorized user’s purchases might also hurt your overall credit utilization ratio, one of the key factors in determining your FICO® score.Ī credit card company is not obligated to report an authorized user’s activity to the three main credit bureaus ( Equifax, Experian, and TransUnion).
It can also make it easier for someone else, such as a partner, spouse, or young adult child to make purchases using your card - which might not be accepted if their name isn’t on the account.īe sure to only make someone an authorized user if you trust them because you are responsible for the account and they could charge a number of high price items on your account which you would be responsible to pay. On the plus side, an authorized user can help you keep a card you rarely use active, so the lender doesn’t close the account.
That debt obligation falls solely to the primary cardholder, so it is important that you trust someone before allowing them to become an authorized user of your account. If the credit card is in good standing - with monthly payments being made on time and low credit utilization rates- it may help better the authorized user’s credit.īut unlike a joint account holder, the authorized user does not share any responsibility for making payments. Remove any instances of debt collectionĪn authorized user is just what it sounds like: someone who is authorized to access another person’s card, usually a family member or close friend, by obtaining an additional credit card under the friend or family member’s credit account and credit limit.Dispute inaccurate information on your credit report.
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