How Being an Authorized User Affects Your Credit Score

Aug 29, 2020
Personal Finance

The Importance of Credit Scores

In the world of personal finance, credit scores play a significant role. Your credit score determines your creditworthiness and affects your ability to obtain loans, mortgages, credit cards, and various financial products. Understanding the factors that impact your credit score is crucial for maintaining a healthy financial standing.

What is an Authorized User?

An authorized user is an individual who is granted access to use someone else's credit card account. While they can use the credit card, they are not responsible for making payments. Being an authorized user can be beneficial, especially if the primary account holder has a positive credit history.

How Does Being an Authorized User Impact Your Credit Score?

When you become an authorized user, the credit card account's payment history is typically reported on your credit report. If the account has a good payment history, it can positively impact your credit score. On the other hand, if the account has negative marks or late payments, it could have a negative effect on your credit score.

It is important to note that not all credit card companies report authorized user activity to credit bureaus. Therefore, it is crucial to check with the credit card company or the primary account holder to confirm their reporting practices.

The Pros and Cons of Being an Authorized User


  • Positive impact on your credit score if the primary account holder has a good payment history
  • Can help establish or build credit if you have a limited credit history
  • Provides access to a credit card without the responsibility for payments and debt
  • Can benefit from the account's credit limit, which may increase your available credit and improve your credit utilization ratio


  • Negative impact on your credit score if the primary account holder has late payments or high balances
  • Being an authorized user does not make you liable for the debt, but any unpaid balances could indirectly affect your credit if they lead to collection or legal actions
  • Dependency on the primary account holder's financial responsibility
  • Financial challenges between the authorized user and the primary account holder could strain their relationship

Tips for Being an Authorized User

If you decide to become an authorized user, there are a few essential tips to keep in mind:

  1. Choose a primary account holder with a strong credit history and responsible payment habits.
  2. Set clear communication and expectations with the primary account holder regarding card usage, balances, and payments.
  3. Monitor your credit report regularly to ensure accurate reporting of the authorized user account.
  4. Avoid relying solely on being an authorized user to build credit. Consider establishing your credit history through other means, such as secured credit cards or personal loans.
  5. Use the credit card responsibly and avoid unnecessary spending.

Life Designers: Your Trusted Credit Score Consultant

At Life Designers, we understand the crucial role credit scores play in achieving financial success. As a trusted consulting and coaching service in the realm of business and consumer services, we offer expert guidance on credit scores and help individuals and businesses achieve their financial goals.

Our team of experienced professionals specializes in analyzing credit reports, providing personalized recommendations for credit improvement strategies, and offering valuable insights into credit score management. We work closely with our clients, providing comprehensive solutions tailored to their unique needs.

Whether you're a business owner seeking to optimize your credit profile or an individual looking to improve your credit score, Life Designers is here to help. Contact us today to schedule a consultation and take control of your credit score!

Sean Beansie
Helpful insights on credit scores.
Nov 8, 2023