Becoming a certified user with someone else’s credit card is a way to practice responsible credit use while building your credit. As long as you understand the pros and cons, you can establish your credit history and increase your credit score as a certified user.
Help your loved ones by details on how to improve your credit as a certified user, or by adding it as a certified user to your credit card.
What are certified users?
An authorized user is someone who has permission to use another person’s credit card account. They can buy, but they are not responsible for repaying the balance.
Authorized users will receive their own credit card connected to the primary card holder’s credit line. Purchases made with cards are added to the balance of the primary card holder. The primary cardholder is responsible for making repayments on time to cover both the spending and the spending of authorized users.
In addition to being unable to directly repay the balances of your card account, authorized users cannot make changes to your account, request an increase in credit limits, or add other certified users.
Being an authorized user can help poor credit borrowers. It is also a convenient way for families and household members to streamline their spending.
How does being an authorized user build credits?
If the card is used responsibly, being an authorized user can build a credit and the card issuer reports responsible actions against the major credit departments, Equifax, Experian and Transunion.
Please note that being an authorized user may affect your credit, for better or worse, depending on your on-time and late payments and credit use. This is useful if both primary cardholders and certified users know the factors that make up their credit score, including:
- Payment history
- Credit history length
- New Credits
- Credit Mix
- Payment amount
If you and your major cardholders are striving to maintain these factors, there is a strong start to building credits as certified users, especially when it comes to payment history and amounts.
Authorized users, co-signers and co-account holders
When it comes to sharing a credit card with a partner or family, there may be several conditions in mind. Authorized users, co-signers, and co-account owners all have different levels of access to the shared card, but the terms are not exchangeable.
One of the most important differences is that you are responsible for repaying your card.
- Certified User: The primary cardholder is responsible for repayment of the card, not the authorized user.
- Co-signer: The co-signer will be responsible for repayment of the credit card if the primary cardholder does not repay the card.
- Joint Account Owner: Joint account holders have equal access to funds, but they also share equal responsibility for their debt.
If your card is not paid on time or is used irresponsibly, you’ll want to understand whose credit score will be affected. Co-account owners and co-signers may have a credit score hit if the primary cardholder falls behind in payments. Authorized users will boost credit with responsible use of the card (whether or not they are using it by themselves or the primary cardholder).
Who can become an approved user?
Legally, anyone can become a certified user with a credit card. Authorized users must meet the card issuer requirements and be added by the primary card holder.
However, authorized users tend to have a close relationship with the primary cardholder. They may be spouses, children, other relatives or trustworthy friends. This is because the primary cardholder is responsible for fees made by authorized users, whether or not they personally approve the transaction.
What is the minimum age to become an authorized user?
Each card issuer has its own policy for certified users. The minimum age limits for some major credit issuers are as follows:
| Credit card issuer | Does the issuer report the credit activity of certified users to the Credit Bureau? | Minimum age for certified users |
|---|---|---|
| American Express | Yes, if the user is 18 years old or older | 13 years old |
| Bank of America | yes | none |
| Barclays | yes | 13 years old |
| Capital 1 | yes | none |
| Tracking | Yes, if the user is 18 years old or older | none |
| Discover | yes | 15 years old |
| US Bank | yes | 13 years old |
| USAA | yes | none |
| Wells Fargo | Yes, if the user is 18 years old or older | 18 years old |
Pros and cons of being an authorized user
Below are some of the key benefits and risks of becoming a credit card authorized user:
Strong Points
- Can be constructed Your Credit: As an authorized user, you can rely on the good trust of others to build yourself. Payments made by the primary card holder on time will be displayed in your credit history and will help you increase your score over time. Please check if the card issuer reports data to the three credit departments of certified users. Being a certified user can also help you reduce your credit usage and improve your account age and combination. This is a credit scoring factor.
- You are bAmazing family rewardsY Account: Combining the army with one reward card increases your reward revenue. This strategy will help families get rewards to use together. For example, it can offset large purchase points for vacations, such as cashback, or offset travel points.
- You can get STLong Financial Start: Parents may add older children as permitted users to boost their credit history and start with a high credit score. Primary cardholders can learn how to set spending limits for certified users and use them responsibly before they place their own strike.
Cons
- Primary Cardholders have full control and responsibility for their accounts: Those who originally had a credit card are solely responsible for all purchases made. This is true, but it is not, even if a certified user has committed to paying back the fee. Additionally, if authorized users gain a high balance, it could damage the use of the primary card holder’s credit.
- There is a risk that you will allow major cardholders to get hurt Your Credit: The behavior of the primary cardholder is also reflected in authorized users. Late payments and other credit disasters can hurt both credit scores. If you decide to become a certified user on another person’s account, make sure you have a long history of responsible credit use.
- you can’t Get your own reward: When you become a certified user with another person’s credit card, your primary card holder receives all your rewards. If you are strategically pooling points with your partner or spouse, this may not be a big deal, but if you want to earn your own rewards, that’s a shame.
How to add approved users to your credit card
The process of adding authorized users depends on the card issuer. In many cases, primary cardholders may be able to add certified users online or via the issuer’s mobile app. In other cases, you may need to call the issuer.
You will usually need to provide information such as the name of the authorized user, date of birth, and Social Security number.
How much does it cost to add approved users?
Most issuers allow you to add certified users for free, but some high-end cards may charge you a fee. For example, American Express’s Platinum Card® costs $695 an annual fee, with an additional fee of $195 per authorized users, while Chase Sapphire Reserve® costs $550 an annual fee, with $75 per authorized users. Meanwhile, the Chase Sapphire Preferred® card charges a yearly membership of $95, but there is no additional charge for certified users.
If you have a credit card that does not have an annual fee, there is usually no charge for certified users.
How to delete an authorized user
You can usually delete approved users online, on the mobile app or on the phone. The Consumer Financial Protection Agency recommends that issuers ask for a card with a new number. You can also send a certification letter to the issuer confirming the changes.
Do I need to delete myself as a certified user?
If you become an authorized user to help build credits, you will not be as affected as your credits as your primary card holder does. Therefore, if you imagine using your credit card responsibly, we recommend applying for a starter credit card. Please note that you must be at least 18 years old to apply.
If the primary cardholder of your account is not using your card responsibly – it is best to delete yourself as an authorized user, such as delayed payments or high balancing. You don’t want their negative credit activities to affect your credit score. You can usually delete yourself online, on the app or on the phone.
Conclusion
Becoming an authorized user with a credit card account is a way to establish or rebuild your credit, and to share costs and rewards with your primary cardholder. Please note that use of the card can reflect the credit reports of both parties. The main cardholders are ultimately responsible for repaying the card. Therefore, it is important to establish trust, spending limits, and repayment expectations.
