Does adding someone to my credit card help their credit

August 25, 2022 |6 min read

August 25, 2022 |6 min read

If you’re considering becoming an authorized user or adding one to your account, you might have a few questions about how it works and how it could affect your credit.

As with most things involving credit, the answers can depend on a number of factors. This article will break down some of those factors and offer things to consider about authorized users to help you decide.

Key Takeaways

• An authorized user is someone who’s been granted access to use another cardholder’s account.
• Adding an authorized user may help them build their credit and learn about using a credit card responsibly.
• An authorized user isn’t legally responsible for the charges they add to an account, unlike a co-signer or someone on a joint account.
• Adding an authorized user can affect things like payment history and credit utilization, which might impact both parties’ credit scores.

What Does Adding an Authorized User Mean?

An authorized user is a person to whom a cardholder has granted access to use their account. There are several reasons why one might add an authorized user, like helping family members build credit or have access to the account. But it’s important that an authorized user is someone you really trust. And the level of access an authorized user has to an account can vary based on what each credit card company allows.

An authorized user is allowed to make charges on the credit card—and might get their own card—but isn’t required to make payments every month. That responsibility falls to the account holder.

In some cases, the account holder may be able to make the authorized user a manager of the account. That could allow the authorized user to do things like track purchases, report issues and redeem rewards.

Who Can Be an Authorized User?

Becoming an authorized user depends on two things: the account holder and the credit card company. 

First, card issuers may have rules about who can be added or how old authorized users must be. From there, a lot of it is up to the cardholder.

How Many Authorized Users Can Be on a Credit Card Account?

The number of authorized users that can be on a credit card account depends on the issuer and its policy. Credit card issuers set their own policies, so the answer may differ from issuer to issuer.

Reasons to Add Someone as an Authorized User

There are several reasons to add an authorized user to a credit card account. These include:

• Helping another person build credit.
• Teaching children about credit.
• Simplifying finances as a couple.

Whatever the relationship, trust is key. Once an authorized user is given access to an account, they typically can use their card—with or without permission—until access is revoked. So it might be a good idea to talk about budgeting and spending beforehand.

How Can Being an Authorized User Affect Your Credit?

First, it’s important to know that credit card companies aren’t required to report an authorized user’s activity to the three major credit bureaus. And if the information doesn’t appear in a credit report, it may not affect an authorized user’s credit or credit scores at all.

But if the card issuer reports the information, seeing positive effects on the authorized user’s credit starts with both the account holder and the authorized user using the credit card responsibly. That means doing things like making sure monthly payments are on time and keeping balances low.

Plus, as the Consumer Financial Protection Bureau (CFPB) notes, “Credit scores are based on experience over time.” So if a cardholder has good credit and uses their card responsibly, simply adding an authorized user could help that person start a credit history.

Can an Authorized User Hurt the Primary Cardholder’s Credit?

There are also some potential disadvantages. If the authorized user doesn’t use the account responsibly, it can hurt the account holder’s credit.

Negative actions, like missed payments, could affect both the primary cardholder and the authorized user. And because multiple people have access to the account, there’s the risk of miscommunication or overspending. And that could affect the original cardholder’s credit utilization ratio.

Making sure you’re on the same page when it comes to responsible credit card use could help you avoid mistakes that reflect poorly on both parties’ scores.

How to Add Authorized Users to Your Credit Card Account

You can add authorized users to your credit card account by reaching out to the card issuer. Each issuer may have a different process for adding and removing authorized users of a credit card account. So it’s best to find out what your credit card company says. 

Before adding an authorized user to your Capital One card, you’ll need some information about the user, like their Social Security number and date of birth. You can add or remove authorized users from your Capital One account online. There’s no additional cost to add or remove a user to your account.

What’s the Difference Between Authorized Users, Co-Signers and Joint Accounts?

The difference between authorized users, co-signers and joint accounts has to do with the level of access and responsibility each party has over a particular account. For example, authorized users can charge money to your account, but they can’t add other authorized users or dispute charges. They also can’t request credit limit increases, transfer balances or close the account. In contrast, joint account holders can do all of those things and more.

Co-Signer

A co-signer vouches for someone who’s applying for their own credit card. The co-signer is telling the credit card company that if the cardholder can’t pay, they will.

Typically, co-signers don’t get a card of their own, don’t receive monthly statements and don’t have access to the credit card account. And not all issuers allow co-signers.

Joint Account

A joint credit card works like a traditional credit card, except the account is shared. Cardholders get their own cards linked to the account. And both cardholders are responsible for paying the balance every month—no matter who made the original purchases.

Removing a user from a joint account can be trickier than removing an authorized user from an account. While some issuers may allow an account holder to remove someone from a joint account, many issuers or state laws prohibit an account holder from removing a person without their explicit consent.

Authorized Users in a Nutshell

An authorized user is anyone added to a credit card account who can make charges on the card. It can be beneficial for simplifying finances among family members. Or it can be used to help someone establish a credit history. 

An authorized user can affect both parties’ credit scores in a number of ways, including through missed payments or increased credit utilization ratios.

If you want to start tracking and monitoring your credit, CreditWise from Capital One can help. It’s free to use, even if you don't have a Capital One account. And using CreditWise won’t hurt your credit scores.

You can also get one free copy of your credit reports from each of the three major credit bureaus every year by visiting AnnualCreditReport.com.

We hope you found this helpful. Our content is not intended to provide legal, investment or financial advice or to indicate that a particular Capital One product or service is available or right for you. For specific advice about your unique circumstances, consider talking with a qualified professional.

Capital One does not provide, endorse or guarantee any third-party product, service, information, or recommendation listed above. The third parties listed are solely responsible for their products and services, and all trademarks listed are the property of their respective owners.

Your CreditWise score is calculated using the TransUnion® VantageScore® 3.0 model, which is one of many credit scoring models. It may not be the same model your lender uses, but it can be one accurate measure of your credit health. The availability of the CreditWise tool depends on our ability to obtain your credit history from TransUnion. Some monitoring and alerts may not be available to you if the information you enter at enrollment does not match the information in your credit file at (or you do not have a file at) one or more consumer reporting agencies.

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