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How to add someone to your credit card

How to add someone to your credit card

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Most credit card issuers let you add an additional person, such as a child or employee, to your credit card account without requiring that this person actually apply for the credit card themselves. This additional user is called an authorized user.

The authorized user receives a credit card with their name on it, and they can use the card just the same as if they were the primary account holder. All purchases the authorized user makes go to the same account and appear on one credit card statement. The authorized user shares the credit limit with the primary account holder and their purchases reduce the amount of credit available to both users.

Unlike a joint account holder, an authorized user doesn’t have to go through a credit check to be added to the credit card account. Some credit card companies may charge a fee for adding authorized users, while some rewards credit cards offer a bonus if you add an authorized user to your account.​

Authorized User Permissions

The authorized user receives all the credit card privileges of the primary account holder, but has no legal responsibility for purchases made on the account. If there's ever a lawsuit regarding debts on the account, the authorized user won't be included, even if that person was responsible for the purchases.  

Authorized users can make a payment on the account, even though they're not required to.

For safety, authorized users can't perform account maintenance activities such as adding other authorized users, changing the address on the account, requesting a credit limit increase, or negotiating a lower interest rate.

Credit History Impact

The credit card account history could show up on the authorized user’s credit report if that credit card issuer reports authorized user accounts to the credit bureaus. That’s great if the account has a positive payment history, and bad if the credit card payment has a history of late payments or maxing out the limit.  

If an authorized user account is not showing on your credit report, there's a good chance that credit card issuer, as a policy, doesn't report authorized user accounts to the credit bureaus. A quick call to the card issuer's customer service can let you know whether you can expect the authorized user account to show up in your credit history and with which bureaus.

After the subprime mortgage crisis of 2007, FICO score calculations were updated to give less weight to authorized user accounts overall, and also to exclude authorized user accounts added for the sole benefit of a credit score boost. For example, if a person pays a credit repair service a fee for authorized user accounts, FICO scores will likely not consider that account for calculating a credit score.  

Adding an Authorized User

To add an authorized user, contact your credit card issuer by phone or by logging on to your online account. The card issuer will need the authorized user's personal information, including their name, address, date of birth, and social security number, to process the request.

The company may impose a limit on the number of authorized users you can add to your account. And it's probably for the best—the more people with spending access to your credit card, the harder it is to keep track of the charges.

Some credit card issuers allow you to set different spending limits for each authorized user on your account. Often this is as easy as logging into your account and changing each person's limit.

Removing an Authorized User

Dissolving the authorized user relationship is almost as easy as starting it. Simply call the credit card issuer or log on to the primary account holder's online account and request to remove the authorized user. The user's credit card will be deactivated and they will no longer be able to make purchases.

Frequently Asked Questions (FAQs)

How long does it take for an authorized user to see an impact on their credit score?

Credit scores update whenever there is new information. As soon as your credit card company reports the authorized user to credit bureaus, the score could update. Whether a score updates or not depends on any other activity in the report. Negative information elsewhere could cancel out the positive information of an added line of credit.

What benefits do you get when you add an authorized user to your credit card?

Most of the benefits will be for the authorized user that's added, rather than the primary cardholder. Authorized users can help keep a card account active, and their spending could help to hit any welcome offer thresholds. Aside from those small perks, the rest of the benefits are for the authorized user.

We now have car sharing, house sharing and even job sharing via the so-called gig economy, so some people might be wondering if they can you share their credit card. There are ways you can share your credit card, but these options range from savvy to risky.

Adding an Authorized User

The easiest way to share a credit card is to add an authorized user to your account. All credit card holders have the ability to request additional cards for others to use, typically family members or employees. And with the exception of a few premium credit and charge cards, there is no fee for doing so. Once their card is received, authorized users will have the ability to make purchases (and authorize returns), but not to dispute charges, make changes to an account, or redeem rewards. Further, authorized users are not responsible for repaying the debts that they incur. They will, however, benefit from your credit history and score. And conversely, if you are late paying the bill or carry high debt on the card, their credit could suffer as a result. (If you’re not sure what your credit is like, you can check your free credit report summary at Credit.com.)

So by making someone an authorized user, you are granting that person the power to exhaust your line of credit, without any of the responsibility of repayment. That’s a risk some people find is worth taking and others don’t — you just need to understand what you’re signing up for when you add a user. As the primary cardholder, you are able to grant and revoke authorization of other cardholders in your account, but you will always be responsible for repaying their purchases. Thankfully, there are some small business credit cards that allow you to impose individual spending limits on your employee credit cards. (You can see our recent ranking of the Best Business Credit Cards in America here.)

Joint Account Holders

Another way to share your credit card is to become a joint account holder with another person, which is only offered by some banks and credit unions. Typically this arrangement is chosen by spouses who both wish to exercise all of the privileges of being a primary account holder. Being joint account holders means that both people’s credit is considered when applying for an account, and both cardholders are individually required to pay back all debt. This means that even if one person chooses not to pay his or her fair share, the other person is still responsible for making the entire payment, and both parties’ credit will be hurt in the event of a default.

Sometimes, people become joint account holders when one person cannot qualify for a credit card on their own, and another is asked to co-sign an application. This practice has become more common since the passage of the Credit CARD Act of 2009, which prevents card issuers from opening accounts for adults under 21 years old unless they can show a means to repay a loan. Unfortunately, some older college students will co-sign the applications of their younger classmates, and have therefore become joint account holders. Needless to say, this type of credit card sharing among friends is fraught with negative consequences as both people’s credit can be severely damaged if either does not make timely payments.

Loaning Out Your Card

Of course, the other way to share your credit card is just hand it to someone else and let them use it, which is especially problematic. First, the recipient may be asked to show primary account holder’s ID, or have his or her signature compared to the one on the back of the card. But even if successful, the signature on the receipt will be fraudulent. Finally, loaning out your credit card violates the terms of your agreement with the credit card issuer.

A better way to handle situations where you need to extend someone a little credit is to purchase a generic Visa, MasterCard, or American Express gift card. These cards are offered in several different denominations, or you can purchase a variable load card with up to $500 on it. You won’t put your credit at risk, neither will your friend, and you’ll be able to control how much you’re lending out.

How to add someone to your credit card

Khadija Khartit is a strategy, investment, and funding expert, and an educator of fintech and strategic finance in top universities. She has been an investor, entrepreneur, and advisor for more than 25 years. She is a FINRA Series 7, 63, and 66 license holder.

You might get a joint credit card account with a spouse, partner, or even a child to simplify bill paying, to merge your lives, or to help that person get a better credit score. Managing a joint credit card account isn’t always easy. You have to discuss everything you’d automatically decide when you have your own credit account.

Co-Signer vs. Authorized User

To share a credit card account, you can add a second person as an authorized user or as a joint account holder, also known as a co-signer. An authorized user isn’t legally responsible for making payments on the credit card but can make purchases on the account. Joint account holders are equally liable for making credit card payments. Both options have benefits. Before deciding which to choose, carefully consider your own situation.

Some banks report the activity of authorized users to the credit bureaus. This means so parents who want to help their children build credit sometimes will add them as authorized users to their accounts. Or, if one spouse has a low credit rating, the partner with the higher rating might add the other as an authorized user for the same purpose.

Not all card issuers report the activity of authorized users to credit bureaus, so be sure to confirm their practices before adding someone to your account.

Joint accounts are more common in relationships that involve equal financial responsibilities. Credit card issuers typically do not allow a joint account holder to be added after an account already exists, so both parties need to apply at the same time. Both parties share in the benefits and responsibilities just as they would with a joint bank account.

Managing a joint credit card is easier when both account holders have similar spending habits and financial goals.

Banks That Offer Joint Accounts

Not all card issuers offer joint accounts as an option. As of 2019, US Bank and PNC Bank are two examples of credit card issuers that still offer the option. Most other popular banks have moved away from the practice, but they do allow account holders to add authorized users. If getting a joint credit card account, be sure that this is what you're getting. Policies and practices change frequently, so issuers may add or remove the option for joint accounts at any time.

For a joint account, both cardholders will need to supply their personal information on the application, and the card issuer will run a credit check on both applicants. The credit scores and credit backgrounds of both applicants will be considered when the issuer decides whether or not to approve the application and what terms and limits will be set if it is approved. No matter how good your credit is, you should expect a low credit limit and a high interest rate if your co-signer has poor credit.  

The Ramifications of a Split

If you break up with your joint account holder, both of you remain responsible for paying the credit card bill. Not even a divorce changes the terms of the original contract. If the judge says each of you pays half the bill, and your ex doesn’t keep up their end of the deal, the credit card issuer doesn’t care—you’re both still liable for making payments. You also should be wary of revenge spending—when an angry ex runs up the credit card bill and doesn’t bother to repay it.

The credit card issuer may not let you close the joint credit card account until the balance has been repaid, so the other account holder could keep charging while you work to pay off the balance.

Closing an account is likely not the best option for your credit score since it will reduce your available credit and possibly shorten the average age of your credit accounts. However, it probably remains the best option after a split in order to prevent any further problems.  

An account holder can remove an authorized user at any time, but authorized users may have difficulty removing themselves from an account by themselves, depending on the policies of the card issuer. Either account holder on a joint account should be able to close the account. If there is disagreement over how to handle the closing of an account, the terms should be outlined in a divorce agreement.

Best Practices

Sharing a credit card account with someone else does not have to be difficult, but there is planning involved that requires account holders and authorized users to discuss what they will use the card for, when they will use it, how they will pay for it, and more. These are some issues to keep in mind:

To maintain good credit, the maximum balance you keep should be no greater than 30% of your credit limit. Credit bureaus value available credit, so the higher your balance, the less credit you have available and the bigger the hit your credit score will take. Communicate with your partner about staying below the 30% threshold.

In irresponsible hands, your credit card can morph from a little piece of plastic into a weapon that threatens everything from your good credit rating to your financial stability. You don’t have to share a joint account with your spouse to make purchases using the same credit card. Although you can give your spouse permission to use your credit card at any time, think long and hard before turning over your card. Keeping close tabs on your credit card – and its balance – is your responsibility. The only way to ensure that your account is 100 percent secure is to remain the only person who uses the card.

Credit Card Usage

You have the right to use your credit card as you see fit, provided you do so within the scope of your original agreement with your credit card company. This freedom of use includes allowing a third party, such as your spouse, to use the card when necessary. While it is legal for your spouse to use your credit card with your permission, you’re on the hook for any charges your spouse makes. This is the case even if you give your spouse specific limitations, such as where he can use the card or how much he can spend, that he subsequently ignores.

Authorized Users

If your spouse needs regular access to your credit card, you can contact your credit card company and add your spouse to your account as an authorized user. After you add your spouse to your account, your credit card company will send him a card of his own. Don’t be fooled into thinking, however, that adding your spouse suddenly makes your credit card account a joint account. Because the account legally belongs to you and not your spouse, you are still responsible for paying off any debt he incurs.

Credit Card Misuse

Allowing your spouse to use your credit card, even just once, is a slippery slope. If your spouse later takes and uses your card without your permission, you may still be responsible for the charges he incurs – regardless of whether or not you were aware of his activities. While some courts have upheld that such behavior is clearly theft and constitutes misuse, other courts note that when you give your spouse permission to use your account, he has “apparent authority” to continue to make purchases with your credit card in the future.

Considerations

If you allow your spouse to use your credit card, you probably trust him to make smart purchasing decisions. However, this very trust can leave you in financial hot water later on, as your spouse can use this trust to hurt your finances and damage your credit. For example, if you add your spouse to your account as an authorized user and you and your spouse later divorce, he can max out the credit card – leaving you treading water in a sea of debt. If you cannot pay off your spouse’s purchases, your credit card provider will report your missed payments to the credit bureaus and your credit rating will take a nosedive. To make matters worse, credit card companies retain the right to sue nonpaying consumers. A lawsuit from your credit card provider can leave you facing a financial nightmare that consists of property liens, bank levies and garnished wages.

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Share the benefits of your card with family and friends.

Share the convenience of your account with loved ones. When you give loved ones access to your account, they get their own personal card and can enjoy full access to that account. And you can earn rewards on the purchases made by your family members or friends when you add them as an authorized user.

Sign in to add authorized users.

All correspondence, including credit cards, statements, and notifications will be sent to the name and address on file for the primary cardmember. The primary cardmember is responsible for repaying all balances on this account. Authorized users will have the same account number and charging privileges as the primary cardmember but will not be financially responsible. Chase provides account information to the credit reporting agencies for all account users. This information could impact an authorized user’s credit score. When you tell us to add a user to your account, you’re confirming that you have a relationship with the person or people whose name(s), address(es), and date(s) of birth you’ve told us, that all their information is correct, and that you have their consent to add them. If Chase determines you’ve given us fraudulent name, address, or date of birth information or did not have such consent, Chase can close this account.

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How to add someone to your credit card

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Don't end up making a decision you'll regret.

When you have a credit card in your name, you generally have the option to add someone else as an authorized user. If you do that, the authorized user doesn’t have to apply for a card themselves — they are simply added on to your existing account.

There are plenty of benefits to adding an authorized user, but you’re also taking a big risk when you give someone this status. Before you decide to move forward, be sure to ask yourself these three important questions to ensure you’re making the right move.

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1. Why does this person need to use my card?

When you add someone as an authorized user, you are allowing them to use your credit card account as they wish. This is a big decision, so ask yourself if it’s really necessary to give someone unfettered access to your account.

In some cases, it makes a lot of sense to provide another person with the authority to charge items to your account. For example, if you own a business, you might want to let an employee use your company credit card account so you can track those purchases and earn credit card rewards for them. Or if you’re married, you may want to give your spouse access to your card to pick up items at the grocery store.

But it’s important to consider the reasoning before you move forward because you only want to let someone use your card if there’s justification for doing so.

2. Can I trust them?

Once you’ve made someone an authorized user, you are responsible for every charge they make on your card — even if they don’t ask your permission first.

For example, say you make your child an authorized user on your card for emergencies when they go away to college, and they end up charging a whole lot of drinks with it. The credit card company will hold you responsible for paying the bill — regardless of whether your child was supposed to spend that way.

You’re also the only one with a legal responsibility to pay on the card — even if the authorized user made the charges. They have no legal obligation to pay off what they owe. So you need to make sure you are 100% confident they’ll use your card wisely and not abuse your trust if you’ve given them authorized user status.

3. Do you both understand authorized user status?

Finally, both you and the authorized user need to know your rights and responsibilities.

As mentioned above, you are the only one who has to pay the card balance, so make sure the authorized user is aware of the major financial obligation you are taking on.

It’s also important to note that the card will show up on the authorized user’s credit report — but only as long as their authorized user status remains in effect. If someone uses your card for years as an authorized user, they won’t be developing a credit history of their own with their spending on that card. If you decide to remove them from the card, that could be a problem later.

If your teen uses only your card as an authorized user until they are 25, for example, then when you finally want to remove them, they’ll have no credit record and could struggle to get approved for a card in their own name.

So make sure you both understand the risks and benefits of being an authorized user — and then determine how confident you are that the person you’re designating as an authorized user is trustworthy. That way, you can avoid making a mistake you’ll come to regret.

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Open the Wallet app and tap your Apple Card. Under People, tap Share My Card, then tap Continue. Select a member of your Family Sharing group. To invite someone to join your Family Sharing group, tap Invite Someone.

People ask also, can you have a joint Apple Card? Co‑Owners are equal partners. Apple Card Family allows two partners to merge credit lines 7 to form a single co-owned account, manage that account together, and build credit as equals. Both Co‑Owners can view and manage the account, see each member’s activity, and set limits on Participants’ spending.

Also the question is, can I add my wife to my Apple Card? Apple Card customers can add up to five people to their Apple Card account by sharing Apple Card with them in Wallet. All users must be part of the same Family Sharing group in order to be invited to Apple Card Family, and be 13 years of age or older.

Moreover, can you share Apple Pay card? You can also share your Apple Card with members of your Family Sharing group, including teens and adults. Everyone on the shared account can use Apple Card and view their spending. Account owners and co-owners can see a participant’s activity, set transaction limits, and more. And there’s a single monthly bill.

Correspondingly, does an Apple Card build credit? If you use your Apple Card responsibly, it can help you build your credit over time. … As of this writing, the Apple Card reports credit activity to TransUnion and Equifax — two of the three major credit bureaus — and Apple may expand reporting to Experian in the future.Apple released a new color for the iPhone 12 and 12 Mini this spring, and it’s purple. … Purple is the sixth color for the iPhone 12 and 12 Mini, which come in black, white, blue, green, Product Red and now purple.

What is the credit limit on Apple Card?

Some users have reported Apple Card credit limits as low as $250, which isn’t enough to buy the AirPods Pro with tax, let alone an iPhone. Other users have seen credit limits between $1000 and $5000, perhaps as little as a tenth of the credit limits they’ve been granted elsewhere.

Can you have multiple credit cards on Apple Family Sharing?

The family organizer (the person who sets up the Family Sharing account) must choose one card from their account where purchases can be billed. It is possible to have multiple credit or debit cards on file, though. Valid payment methods for setting up Family Sharing include credit cards and debit cards.

How do I add a credit card to Family Sharing?

Tap your name, then tap Family Sharing. Tap Purchase Sharing. Tap Continue and follow the onscreen instructions. To see which payment method will be billed, tap Purchase Sharing again and look at the Shared Payment Method information.

How do I share my Apple Card with family members?

  1. Open the Wallet app and tap your Apple Card.
  2. Tap the more button .
  3. Under People, tap Share My Card, then tap Continue.
  4. Select a member of your Family Sharing group.
  5. To invite an account co-owner, tap Become Co-Owners.

Can you add someone else’s card to Apple Pay?

Sorry, no. Only the account owner can currently use Apple Card. If a family member or friend wants to use Apple Card, they will need to apply for Apple Card.

Can I add my Apple Card to two phones?

Yes, you can add your Card on up to 10 devices. Please note that your Card must be added to each device separately.

How long does Apple Card approval take?

Usually the approval is very quick while you are on the iPhone. But if Goldman Sachs finds they need to verify or check your state ID, then expect about a week or 2.

Is it hard to get approved for the Apple Card?

You can apply for Apple Card without impacting your credit score. If your application is approved and you accept your Apple Card offer, a hard inquiry is made.

What happens if I decline Apple Card offer?

If you apply for Apple Card and your application is approved, there’s no impact to your credit score until you accept your offer. … If your application is declined or you reject your offer, your credit score isn’t impacted by the soft inquiry associated with your application.

Will there be a purple iPhone 13?

iPhone 13 and iPhone 13 mini will come in six colors So, to launch in six colors is unprecedented. The new colors are said to be black, blue, purple, white and PRODUCT(RED), with last year’s green replaced by pink.

Is iPhone 12 out in the market?

The iPhone 12 release date was October 23, 2020, so the phone is now out and you’re able to buy it directly from Apple as well as a variety of retailers. The phone’s sibling – the iPhone 12 mini – wasn’t available until a few months later, but that’s now readily available to buy.

Khadija Khartit is a strategy, investment, and funding expert, and an educator of fintech and strategic finance in top universities. She has been an investor, entrepreneur, and advisor for more than 25 years. She is a FINRA Series 7, 63, and 66 license holder.

Image by Julie Bang © The Balance 2020

It’s the catch-22 of credit for young adults: you can’t get a credit card because you don’t have any credit, but you can’t build enough credit to qualify because you can’t get a credit card. It’s more difficult for young adults under age 21 to get a credit card on their own since federal law now requires credit card issuers to verify their personal income before granting a credit card.  

Young adults, even college students, who don’t have enough income can’t get approved for a new credit card on their own. However, parents may help their kids avoid this dilemma by adding the child to one of their existing credit cards.

Many credit card issuers allow you to add an authorized user—a person who is authorized to make charges—to your account. The authorized user gets the benefit of the credit card without the legal responsibility of owning a credit card.

Adding an authorized user is different from creating a joint account. With a joint credit card, both parties are equally responsible for any balance on the card.

Why Add Your Child as an Authorized User?

Making your child an authorized user on one of your credit cards gives you the opportunity to teach them about credit and help them begin building a good credit score.   At the same time, the child isn’t responsible for making credit card payments. That responsibility still falls on you, but you can involve your child in the process and teach them how responsible credit card use affects their credit.

Decide if Your Child Is Ready

Before you make your child an authorized user on your credit card, be sure you're both ready to take that step. Here are some key questions to consider:

  • Is your child mature enough to understand credit card risk? Having a credit card is a big responsibility. Since you're ultimately on the hook for the purchases made on your credit cards, you have to be able to trust your child to abide by whatever terms you set for the credit card.
  • Does your child typically follow rules you've set at home?
  • Is your child responsible with money?
  • Is your child relatively financially-literate to know how to handle credit cards?

Set a Few Guidelines

Before you call to add your child to your card, make sure you set some guidelines for how the credit card should be used. But before that, select the credit card that has the minimum amount of credit available on it among all the credit cards you have, to reduce the risk.

  • How much can your child spend?
  • What are they allowed to purchase?
  • Should they ask for your permission before making a purchase? Or let you know after they've made the purchase?
  • Who's going to make payment? By when?
  • How long is the authorized user arrangement going to last?

Discuss the consequences of not following the guidelines, such as removing access for a month or lowering their purchasing limit. Stick to your word. If you say you're going to remove your child's authorized user status because they've charged too much, then it's important to follow through.

Creditors aren't lenient with mistakes, so having guidelines helps you teach your child that there are serious consequences of misusing a credit card.

Choose an Account

It may be better to open a separate account or to add them to a credit card that you seldom use. That way, your transactions aren’t mixed together and you can allow your child access to the online account without the concern of them viewing your transactions. Or, if you share a credit card with your child, make sure you leave a buffer of available credit so your child’s purchases don’t push the balance over the credit limit.

If you decide to add your child to one of your existing credit cards, choose one that has a completely positive credit history. Some credit cards report the entire account history to the authorized user's credit report once they're added to the account.   It would be counterproductive to add them to an account that's riddled with late payments and other negative items, as these would be added to your child's credit and hurt rather than help.

Primary and Authorized User Card Responsibilities

Once added to the account, your authorized user will receive a separate credit card in their name. Some credit card issuers even issue different account numbers for authorized users. Even with their own card, the authorized user is simply allowed to make purchases on the account. They typically can't make any other transactions, such as cash advances or balance transfers. Nor can they make changes such as closing the account, requesting a credit limit increase, or adding users.

Keep in mind that you're responsible for all charges made on your card, even those made by an authorized user. Even if the authorized user has verbally agreed to pay for their charges, the credit card issuer generally holds the primary account holder responsible for the balance.  

How to Boost Their Credit Score

Credit score boosts from authorized user accounts were almost eliminated when FICO decided it would no longer include authorized user accounts in its credit scoring model. The decision was based on the number of people who had exploited the loophole by purchasing access to authorized user accounts. Eliminating authorized user accounts would have hurt millions of consumers, so FICO instead tweaked its most recent credit score model—FICO 08—to only include legitimate authorized user accounts.  

As long as all users on the account are engaging in responsible credit behavior, your child should see a boost to their credit.   The VantageScore 3.0 also considers authorized user accounts when calculating a score.  

When to End the Authorized User Relationship

Once your child can qualify for credit on their own, there’s not really a need to keep them as an authorized user. Once they have built good credit and have their own income, the authorized user setup has served its purpose. Removing your child’s authorized user privileges is as simple as making a phone call to your credit card issuer.

Key Takeaways

Making your child an authorized user is a big financial leap for both you and your child. Arm your child with the right information can help them develop healthy credit and money management habits that will benefit them throughout adulthood.

There are several reasons why add an authorized person to your credit card It could be beneficial to your personal or that person’s finances.

You may be thinking about enhancing a child’s credit history, taking care of one of your parents, or sharing expenses with a partner. It is a simple process that we will explain to you in detail.

Article content

  1. What is an authorized user
  2. How to add an authorized user for your TOC
  3. Advantages and disadvantages of adding an authorized
  4. How to remove an authorized person from your credit card

List of Contents

What is an authorized user

An authorized user of your credit card is a person who is assigned an additional plastic with their name so that they can use it under your responsability.

When you contract this instrument, you become the primary cardholder, but you have the possibility of taking out additional plastics for family, friends or business partners.

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We can summarize some of the most important aspects in this way:

  • The authorized user does not need to have income or credit history. Nor should you apply for the card.
  • The authorized person is not responsible under the law to pay the credit debt contracted. That is up to the primary cardholder.
  • Both the person responsible for the plastic and the aggregate share the same credit limit and, depending on the bank, you can assign a specific amount of expense.
  • Depending on the bank, there may be a limited number of authorized and having them may mean an additional commission or not.
  • When spending or purchasing, the authorized user usually receives the same promotions or discounts for the primary cardholder. Although this does not happen with certain benefits.

How to add an authorized user for your TOC

We reiterate that the process of adding an authorized person to your credit card has no complications. In general, it is done with the request of the plastic, but there are banks or issuers that allow you to do it at any time.

If you don’t do the operation in person, you can call the number on the TDC or visit the bank’s website. When you add the authorized online through the bank’s page, you should find the section or link that indicates Authorized users (AU) or Add authorized user.

Then you will have to provide certain personal information basic beneficiary, which usually includes:

  • Direction
  • Full name
  • Date of birth
  • Social security number (if applicable)
  • United States Citizenship Status (if applicable)
  • Relationship with the main cardholder (if applicable)

Once you enter the information, you can make the request. Depending on the entity or issuer, approval could be instantaneous or take longer due to the identity verification of the authorized user.

If everything is correct, you or the beneficiary will receive the new credit card by mail, which must be activated.

Advantages and disadvantages of adding an authorized

According to what we have seen, you can assume that adding an authorized person also has its share of risk if it does not turn out to be the person you thought. However, the worst that could happen includes:

  • How does your score. Depending on the bureau or the card issuer, any negative credit behavior could be included in the cardholder’s file.
  • Legal responsability. You run the risk of the authorized user deciding to spend it all at one point and without remorse. As you are not obligated to pay the debt, you will be responsible for assuming it.
  • Greater possibility of overspending. The fact that two people use the same account means that you should pay more attention to expenses. If you go over the limit, you could incur overdraft fees, denied purchases, and even negatively affect your credit score.

Among the good things about this process, we highlight:

  • Greater comfort. Having another card prevents you from lending all the time and transferring money to your family or friends who need it.
  • Improve your credit score. Depending on how the issuer reports the licensee’s behavior, your liability could raise your score.
  • You don’t lose rewards. Any prize available to the authorized user will be reflected in your accumulated balance of points or cash back.

How to remove an authorized person from your credit card

Just as there will be good times to add authorized to your TOC, there will also be others to remove them. A failed romance, a friend who failed to honor an agreement, or an out-of-control partner can all be reasons to change your mind.

The good news is that removing an authorized user is just as easy as adding it. You can visit the bank, do it online or call by phone. We recommend that you remove the plastic from the person and support the request with a certified letter.

In the event that the TDC is not returned, notify the issuer so they can assign you another number. Some entities that issue credit cards automatically send you a new one when you remove the authorized one.

At Hispanic Business Blog we are pleased that you know your financial alternatives well, so that you can make the most of the usefulness of having an authorized person to use your credit card.