Authorized UserCredit Repair Definition
A person who is permitted to use another person's credit card account but isn't legally responsible for paying the debt.
Definition
An authorized user is someone who has permission to use another person's credit card account but doesn't have the legal obligation to pay the debt. The primary account holder adds the authorized user to their account, and the authorized user receives their own card linked to the primary account. This arrangement is commonly used within families, such as parents adding children or spouses adding each other. The account's payment history usually appears on both the primary user's and authorized user's credit reports, which can help the authorized user build credit if the primary user manages the account responsibly. However, negative information, such as late payments, can also affect the authorized user's credit.
Frequently Asked Questions
How does being an authorized user affect my credit?
As an authorized user, the account's payment history, credit utilization, and age can appear on your credit report, potentially affecting your credit score. If the primary user maintains on-time payments and low balances, this can positively impact your credit. However, if they miss payments or maintain high balances, this could negatively affect your score. The impact varies by credit scoring model; some newer models give less weight to authorized user accounts than primary accounts.
Can I be held responsible for debt as an authorized user?
No, authorized users are not legally responsible for paying the debt on the account. The primary account holder bears the full legal responsibility for all charges made to the account, regardless of who made them. However, there may be personal agreements between the primary account holder and authorized user regarding payment for specific charges.
How do I remove myself as an authorized user?
To remove yourself as an authorized user, contact the credit card issuer's customer service department and request removal. You typically don't need the primary account holder's permission to do this. After removal, you should destroy your card. The account should disappear from your credit report within 1-2 billing cycles, though some credit bureaus may keep it on your report for up to 10 years (but marked as closed).
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