Authorized Users: The Pros, Cons, and Strategy

Adding an authorized user to your credit card—or becoming one on someone else’s—is one of the most powerful yet misunderstood tools in credit management.

Done right, it can boost a credit score by 50+ points overnight. Done wrong, it can damage relationships and credit profiles alike.

Here’s the complete guide.

Why Add an Authorized User?

Reason 1: Build Someone’s Credit

When you add someone as an AU, many issuers report the account to their credit file. They “inherit” your positive payment history.

Impact: A child or spouse with no credit can gain an established credit history overnight.

Example: You add your 18-year-old to your 10-year-old Chase card. They now have a 10-year credit history—before they’ve ever had their own card.

Reason 2: Share Spending Power

Families often share cards for convenience:

• Spouses managing household expenses
• Parents giving kids cards for emergencies
• Employees making business purchases

Reason 3: Earn More Rewards

Every purchase the AU makes earns rewards for the primary account. More spending = more points.

Bonus: Some cards offer extra points for AU spending (Amex Gold gives 4X on AU restaurant purchases).

Reason 4: Meet Minimum Spend

Need help hitting a $4,000 minimum spend? Add an AU whose spending contributes to your total.

How AU Status Affects Credit Scores

What Gets Reported

Most (not all) issuers report AU accounts to credit bureaus. The AU’s credit report will show:

• Account age (matches primary’s account age)
• Credit limit
• Payment history
• Current balance/utilization

Impact on Credit Score

Factor	AU Impact
Payment History (35%)	Inherits primary’s history (good or bad)
Credit Utilization (30%)	Limit added to AU’s total available credit
Length of Credit (15%)	May dramatically increase average age
Credit Mix (10%)	Adds revolving credit if AU lacks it
New Credit (10%)	No hard inquiry for AU

Potential Score Impact

Scenario	Typical Impact
Added to old, low-utilization card	+30 to +80 points
Added to newer card, good standing	+10 to +30 points
Added to card with high utilization	0 to +10 points
Added to card with missed payments	NEGATIVE impact

The Risks of Authorized Users

Risk for Primary Cardholders

You’re responsible for everything. If your AU:

• Maxes out the card
• Makes fraudulent purchases
• Loses the card

You pay. They have no legal obligation.

Your utilization can spike. If AU spends heavily, your credit utilization increases, potentially hurting YOUR score.

Risk for Authorized Users

You inherit the bad too. If the primary:

• Misses payments
• Carries high balances
• Defaults on the account

These negatives appear on YOUR credit report.

No control. You can’t make payments, request limit increases, or control the account in any way.

Risk to Relationships

Money strains relationships. Common issues:

• AU overspends, primary can’t/won’t pay
• Primary closes account, hurting AU’s credit
• Disagreements about spending limits
• Trust violations

How to Add an Authorized User

Online

Most issuers allow AU additions through your online account:

1. Log into card account
2. Navigate to “Account Services” or “Card Management”
3. Select “Add Authorized User”
4. Enter their name, birthdate, SSN (sometimes optional)
5. Choose whether to issue a card

By Phone

Call the number on your card:

“I’d like to add an authorized user to my account.”

They’ll collect the AU’s information and confirm.

Information Needed

Required	Sometimes Required
Full legal name	Social Security Number
Date of birth	Address
Relationship	Email

SSN note: Some issuers don’t require SSN, but providing it ensures accurate credit reporting.

AU for 5/24 Purposes

Important for Chase applicants: AU accounts count toward Chase’s 5/24 rule.

However: If denied due to 5/24 and AU accounts pushed you over, you can call reconsideration and explain:

“I’m listed as an authorized user on [X accounts]. I’m not the primary cardholder. Can you exclude these from my count?”

Chase sometimes accommodates this request.

Better approach: Before applying for Chase, have the primary remove you as AU. Dispute with credit bureaus if the account persists.

The Bottom Line

Authorized users can be a powerful credit-building tool when used strategically:

Add an AU when:

• Building a family member’s credit
• Maximizing household rewards
• Sharing spending responsibility with clear boundaries

Become an AU when:

• You need to establish credit fast
• You can’t qualify for your own cards yet
• You trust the primary cardholder completely

Avoid AU arrangements when:

• There’s any doubt about trust or financial responsibility
• The primary account has issues (high balance, missed payments)
• Boundaries around spending aren’t crystal clear

Used wisely, AU status is one of the few “free” ways to boost credit scores significantly and quickly. Used poorly, it damages both credit and relationships.