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Authorized user on a credit card account - pro and con

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  • Authorized user on a credit card account - pro and con

    An authorized user is someone authorized to use a given credit card and issued a credit card in his own name.

    However, unlike a co-signer on a credit card account, the account is not issued whatsoever based on the good or bad credit of the authorized user. As well, an authorized user has no legal liability to pay any debt on the account.

    Still, on most credit bureaus the credit card account will appear with the notation that it is for an authorized user. In other words, an account with an authorized user will appear on the credit profiles of both the account holder and the authorized user.

    What this means of course is that as long as the account is paid on time and handled responsibly, it will boost the credit of both parties. But if things go south, no matter which party ran up the debt, even though the authorized user is not responsible for the debt his credit will go down same as that of the account holder.
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