Adding an authorized user to your credit card account can be a great way to meet the cost requirements, accumulate more points, and even help a beginner build your credit history. This said there were also risks associated with the addition of an authorized credit card user.
It is important to choose someone who is responsible and capable of paying off his debts, even if he is not legally obliged to do so. This is just the tip of the iceberg, so here’s everything you need to know about authorized credit card users.
What is an authorized user?
Authorized user is a person who has been added to the account of the main credit card holder. Authorized users receive cards with their names on them related to the account of the main card holder. They can use these cards to make purchases just as they would do with their own cards.
Pros to add authorized users
Adding authorized credit card users can be useful for both the main card holder and the authorized user for several reasons. Authorized user can help meet the cost requirements to the account of the main card holder and establish a credit history early.
Maybe the best reason to add a authorized user is so you can take advantage of different Suggested that card benefitsS
Credit card issues and credit card products have different costs and extended benefits given to an authorized credit card user.
For example, you can add up to three authorized users for $ 175 per Citi® / Aadvantage® Executive World Elite MasterCard® (See Tariffs and fees). This card provides access to each of them (plus two guests or immediate family members) to Admiralty Club sun loungers When it flies American Airlines or its partners. However, Admirals Club Access for authorized users is more up -to -date than membership that the main card holder receives.
In the meantime Capital One Venture X Credit Card Rewards Allows you to add up to four authorized users for free by extending Access to capital first and priority sun loungers For your authorized user and up to two guests.
In addition, if you have authorized users of your Chase Account, you can transfer your Chase Ultimate Rewards to Accounts to the Authorized User’s loyalty program. For example, this is great if you have a hiding place for Ultimate Points Points that you want to transfer to the United MileagePlus account to a family member.
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United Airlines charges a fee for transferring miles between MileagePlus accounts. By transferring Ultimate Rewards Points directly to an authorized user United MileagePlus Account, you can avoid this fee.
While Chase allows household members to Transfer the final rewards points To each other to transfer Ultimate Rewards Points directly to another loyalty account, the other account must be kept by an authorized user of your Chase credit card.
Another way to take advantage of having an authorized user of your card Platinum Card® from American ExpressS This card carries a flat fee of $ 195 for each authorized user (see Tariffs and fees). However, this includes key advantages such as Salonfree Marriott Bonvoy and Hilton distinguishes the status of a golden eliteAnd even more. Enrollment is required. Conditions apply.
Some credit cards offer incentives to add authorized users to your account. For example, some American Express Cards offer Bonus membership Rewards Points to add an authorized user.
Cons to add authorized users
The disadvantage of adding authorized credit card users is that it can be more difficult to track the costs when two people use the same card.
Also, the main card holder is responsible for all fees in the account. So, if your authorized user continues to spend and refuse to cover the fees, you will be on the hook for their purchases.
Turning an authorized user carries a risk. Add only an authorized user to whom you are completely trusting, and be sure to communicate in advance for your expectations for repayment.
What is the minimum age for an authorized user?
Providing issuer -specific age restrictions, anyone can be an authorized user. American Express It requires authorized users to be at least 13 years old and not have unfulfilled accounts with the bank. Discover It requires a minimum age of 15 years, while the US Bank requires that authorized users be at least 13 years old.
Bank of AmericaChase and Citi do not impose age restrictions while Capital first and Wells Fargo have a minimum age of 18.
Can I remove an authorized user?
Removing an authorized credit card user is as simple as calling the issuer. Some banks, including Citi, even allow you to do it online. Once the user is removed from the account, which usually takes minutes, their credit card becomes inactive.
However, it may take a few weeks for the card to not be listed as an active account in your authorized user’s credit report.
How do authorized users influence credit rating?
Adding an authorized credit card user will not affect your credit rating unless the additional card tingles a large amount of expenses and increases your CreditS
Meanwhile, authorized users can see a positive credit impact by accessing an additional credit line and reducing their own coefficients of credit use. For those who build a credit history, being an authorized user can be a huge impetus.
TPG credit card screenwriter Danyal ahmed was added as an authorized user to his father’s credit card in high school. When it was time to apply for his own card, he had an established credit history and a higher credit rating thanks to his years that he was an authorized user.
They are required on both sides to mitigate the possible disadvantages to add an authorized user.
Related: Things you need to do to improve your credit rating
Do you need to open a joint account or add an authorized user?
The difference between a joint account and an authorized credit card user is a responsibility. Joint account holders share responsibility for fees while authorized users do not.
Major card holders can also limit the amount of the loan that an authorized user can use. Joint account holders can access the full credit line together.
There is not much up to joint accounts, except to reduce the weight of responsibility on the main card holder. Ideally, you should not add anyone to your credit card (as an authorized user or joint account holder) unless you trust them to use it responsibly.
Lower order
Adding an authorized credit card user can be useful for both the main card holder and the person who is added as a user. However, it is important to be aware of the risks, since the last thing you want to do is to strengthen the relationship because of one person’s financial irresponsibility.
Only add an authorized user to whom you trust that it is responsible with your credit limit and who will pay its part of the credit card balance on time.
Related: The benefits of adding a relative as an authorized user
For tariffs and fees on Amex Platinum Card, click hereS