Adding an authorized user to a credit card account is often promoted as a fast and simple way to build or improve credit. Lenders, parents, partners, and even friends sometimes use this strategy to give someone a financial head start. But does adding an authorized user really help their credit, or is the impact more complicated than it seems? The answer depends on several factors, including the primary cardholder’s credit habits, the credit card issuer’s reporting policies, and the overall credit profile of the authorized user.
TLDR: Adding an authorized user can help their credit by increasing credit age, boosting available credit, and potentially improving payment history—if the primary cardholder manages the account responsibly. However, negative behaviors like late payments or high balances can hurt the authorized user’s score. Not all card issuers report authorized user activity, so verification is important. When used wisely, it can be a powerful credit-building tool, especially for those with limited or damaged credit.
What Is an Authorized User?
An authorized user is someone added to another person’s credit card account with permission to use the card. While the authorized user can make purchases, they are not legally responsible for paying the bill. The primary cardholder remains fully responsible for all charges and payments.
In many cases, parents add children as authorized users to help them build credit early. Couples may also use this method to streamline household finances, and some individuals add trusted friends or relatives to help them establish or repair credit.
How Adding an Authorized User Can Help Their Credit
When the credit card issuer reports authorized user activity to the major credit bureaus, several positive effects may occur.
1. Improved Payment History
Payment history is the largest factor in most credit scoring models, making up about 35% of a FICO score. If the primary cardholder consistently makes on-time payments, those positive payments may appear on the authorized user’s credit report.
This can:
- Help build a credit file for someone with no history
- Add positive payment records to someone with limited credit
- Offset past negative marks over time
2. Lower Credit Utilization
Credit utilization refers to how much credit is being used compared to the total available limit. If a primary cardholder has a high credit limit and maintains a low balance, adding an authorized user increases that person’s available credit.
For example, if the card has a $10,000 limit and a $1,000 balance, the utilization rate is only 10%, which is considered excellent. When this account appears on the authorized user’s report, it may significantly lower their overall utilization ratio.
3. Increased Credit Age
The length of credit history also plays a role in credit scores. If the primary cardholder has maintained the account for many years, the authorized user may benefit from the older account age being added to their credit report.
This can:
- Increase the average age of accounts
- Improve score stability
- Strengthen an otherwise thin credit profile
4. Building Credit from Scratch
For teenagers, college students, or immigrants with no U.S. credit history, becoming an authorized user can be one of the easiest ways to establish a credit record. Instead of starting from zero, they gain immediate access to an established tradeline.
This strategy is frequently used by financially responsible parents who want to prepare their children for future financial independence.
When Adding an Authorized User Can Hurt Their Credit
While the upside can be significant, there are also risks. Credit building through authorized user status depends entirely on the primary cardholder’s behavior.
1. Late Payments
If the primary cardholder misses a payment, that negative mark may also appear on the authorized user’s credit report. Since payment history has such a large influence on credit scores, even one late payment can cause damage.
2. High Credit Utilization
If the account regularly carries high balances—especially above 30% of the credit limit—it may increase the authorized user’s overall utilization ratio. This can lower their score, particularly if their own credit limits are modest.
3. Account Closure
If the account is closed, the authorized user may lose the benefit of that line of credit, potentially reducing their available credit and lowering their average account age.
4. Not All Accounts Are Reported
Some credit card issuers do not report authorized user accounts to all three major credit bureaus (Experian, Equifax, and TransUnion). If the account isn’t reported, the authorized user receives no credit benefit at all.
Before being added, it is wise to confirm that the issuer reports authorized user activity.
Who Benefits Most from Being an Authorized User?
Adding an authorized user tends to work best for:
- Young adults with little or no credit history
- Individuals rebuilding credit after past financial setbacks
- Spouses who want shared financial visibility
- Immigrants establishing credit in a new country
However, someone with an already strong and established credit profile may see only a modest score increase.
Best Practices for Primary Cardholders
If someone decides to add an authorized user, responsible account management is critical.
Best practices include:
- Maintaining balances under 30% of the credit limit
- Paying the statement balance in full each month
- Making all payments on time
- Avoiding frequent large balance spikes
- Monitoring credit reports regularly
Some primary cardholders choose not to give the authorized user physical access to the card. This allows the credit-building benefit without adding spending risk.
Does the Authorized User Need to Use the Card?
In most cases, the authorized user does not need to use the card for the account activity to impact their credit. Simply being listed on a well-managed account is often enough.
However, policies vary by issuer, so confirming reporting practices is important.
How Long Does It Take to See Results?
Results can appear quickly. Once the account is reported to the credit bureaus, changes may be seen within 30 to 60 days. For someone with no prior credit history, this can result in the creation of a credit score relatively quickly.
For individuals rebuilding credit, improvement tends to occur gradually, especially if other negative marks still exist.
Is “Credit Piggybacking” Legal?
The practice of becoming an authorized user to benefit from someone else’s good credit history is often referred to as credit piggybacking. It is legal when done transparently and with legitimate relationships.
However, purchasing tradelines from strangers solely for credit boosting purposes has become controversial and may violate lender policies. Lenders are increasingly aware of this tactic.
Alternatives to Becoming an Authorized User
For those who cannot rely on someone else’s credit, alternative credit-building strategies include:
- Secured credit cards
- Credit builder loans
- Becoming a joint account holder
- Reporting rent and utility payments through approved services
Each method has its own advantages and risks. Becoming a joint account holder, for example, differs significantly because both parties share legal responsibility for the debt.
Final Thoughts
Adding an authorized user can indeed help their credit—but only under the right circumstances. The strategy works best when the primary cardholder has excellent payment habits, low credit utilization, and a long credit history. On the other hand, poor financial management by the primary user can unintentionally harm the authorized user’s score.
For individuals just beginning their credit journey, this approach can provide a powerful head start. For others, it may serve as a valuable supplement to responsible independent credit management. Ultimately, trust, communication, and financial discipline determine whether this strategy becomes a benefit or a risk.
Frequently Asked Questions (FAQ)
1. Does adding an authorized user instantly boost their credit score?
Not instantly. It typically takes one reporting cycle—about 30 to 60 days—for the account to appear on the authorized user’s credit report and potentially impact their score.
2. Can an authorized user be removed?
Yes. The primary cardholder can remove an authorized user at any time by contacting the credit card issuer. The account may eventually drop off the authorized user’s credit report.
3. Is an authorized user responsible for paying the debt?
No. The primary cardholder remains legally responsible for all charges, even those made by the authorized user.
4. Will all lenders consider authorized user accounts?
Most major credit scoring models include authorized user accounts, but some lenders may focus more heavily on primary account history when making lending decisions.
5. How many authorized users can be added to a credit card?
This depends on the credit card issuer. Some allow multiple authorized users, while others set limits.
6. Can someone with bad credit help another person by adding them as an authorized user?
Generally no. If the account has late payments or high balances, it may harm rather than help the authorized user’s credit profile.
7. Is becoming a joint account holder better than being an authorized user?
It depends on the situation. A joint account holder shares legal responsibility for debt, while an authorized user does not. The credit impact can be similar, but the financial risk is greater with joint accounts.