What Is an Authorized User on a Credit Card?

7 Min Read | Published: April 16, 2024

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This article contains general information and is not intended to provide information that is specific to American Express products and services. Similar products and services offered by different companies will have different features and you should always read about product details before acquiring any financial product.

An authorized user is a secondary account holder added to a credit card account by the primary cardholder but isn't responsible for payments. Learn more in detail.

At-A-Glance

An authorized user is a secondary account holder who has been added to a card account by the primary cardholder.
The primary cardholder is still responsible for all the payments, including payments for purchases the authorized user makes.
Adding, or being added as an authorized user, could offer a number of benefits for both parties, but there are some potential risks of sharing an account as well.

Credit card companies will sometimes allow you to add others to your card account so that others can use your card for regular purchases. Doing this is known as adding an authorized user to your account.

Adding an authorized user to your credit card account can offer benefits for each party, but there are some risks involved when adding an authorized user to your account as well.

In this article, we’ll look at what it means to add an authorized user, how this differs from having a joint account, as well as the pros and cons of adding an authorized user to your credit card.

What Does It Mean to Add an Authorized User to a Credit Card

Adding an authorized user to your card involves giving that person permission to use your credit card account to make purchases. Your card company will send each authorized user a credit card in their name linked to your account. With authorized users, there’s also typically no credit check involved either.

When the authorized user makes purchases with your card, the purchase amounts are added to your balance, and you are still legally responsible for paying your credit card bill, including any charges your authorized user makes. For this reason, it’s important to ensure that the person you add as an authorized user is trusted and responsible.

Adding an authorized user can work well for situations where one party needs assistance getting their credit journey started. For example, parents teaching their older children how to use cards responsibly, or individuals helping their partners bring up a low credit score.

Pros and Cons of Authorized Users on Credit Cards

Below are some advantages and potential risks for cardholders:

Pros for Cardholders	Cons for Cardholders
Trusted third parties, such as family members, can make purchases on your behalf.	You must share your credit limit with another user.
The cardholder could earn more rewards as the authorized user makes eligible purchases.	You are responsible for paying the credit card bill, regardless of which user makes purchases.
	Both parties could see a negative credit score impact if either party does not manage the account properly.

Below are some pros and cons for the authorized user:

Pros for Authorized Users	Cons for Authorized Users
Authorized users may be able to build credit when using the credit card responsibly if the card issuer reports authorized user activity to the credit bureaus.¹	The primary cardholder may only extend an authorized user account if the new user agrees to repay purchases.
Authorized users can take advantage of a credit card’s convenience and flexibility if they cannot qualify for their own card yet.	The primary cardholder may remove or restrict the authorized user at any time.
Authorized users learn healthy credit card usage habits before getting their own credit card.	The authorized user may have less privacy regarding their purchases.
	Both parties could see a negative credit score impact if either party does not manage the account properly.

Authorized User vs. Joint Account Holders

With some credit card issuers, you may also have the option to open a joint account. However, not all credit card issuers have this option.

Joint account holders have more responsibility than authorized users and will be responsible for paying off any debts.

Typically, the process of being added to an account is more strict than being added as an authorized user as well. You may need to meet eligibility requirements just as if you were applying for a credit card normally.

Infographic comparing an Authorized Card User, who can use a card without payment responsibility, and a Joint Credit User, who shares payment responsibility

Frequently Asked Questions

There are a number of different variables when it comes to your credit score. While removing yourself as an authorized user could lower your length of credit history, which could negatively impact your credit score, you can avoid this issue by opening your own credit card as soon as possible.²

Typically, credit card issuers do not allow authorized users to become the primary cardholder.

The Takeaway

Authorized users get several advantages of credit cards, such as flexibility and credit-building opportunities, but the primary cardholder is still responsible for payments. Meanwhile, primary cardholders can enjoy more convenience and the chance to earn additional rewards.

¹ “Does Being An Authorized User Build Credit?,” Forbes

² “When should you remove yourself as an authorized user?,” Bankrate

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Bradley Schnitzer is a writer and email strategist who has covered personal finance and small business topics for over five years. He is passionate about personal finance and helping others understand their money.

All Credit Intel content is written by freelance authors and commissioned and paid for by American Express.

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