Joe McConnell
Adding an authorized user to your credit card account can have several benefits. For one, it can make it easier for the primary account holder to meet a spending requirement or earn additional points. The authorized user can also benefit from building their credit history and taking advantage of benefits, such as access to the Capital One Venture X Rewards credit card authorized user lounge.
Before you add someone to your card, you may wonder if the authorized user’s credit history will affect yours. We share what you need to know about authorized user details.
Will an authorized user impact my credit score?
Most credit cards allow you to add authorized users to your account, which allows that person to make purchases on your line of credit using their own personalized cards. But if you’re worried that adding a user could negatively impact your credit score, fear not. The reality is that adding an authorized user is more likely to impact their credit score than yours.
That’s because when you add an authorized user, the account may appear on that person’s credit report, so your account history, balance, and credit limit are factored into their score. That’s why adding a user can help someone establish or improve their credit—they can take advantage of your high score. Of course, any missed payments or other negative marks will also appear on their account, so I don’t recommend adding authorized users unless you’re in control of your finances.
Authorized users, on the other hand, will not appear on your credit report, but their card activity will. Ultimately, you are responsible for any charges they make, including those they did not tell you about. If you end up carrying a balance or missing a payment because an authorized user made charges you did not approve or were unaware of, you could be negatively impacted.
Related: How Do Credit Scores Work?
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Benefits of adding an authorized user
Adding users to your account can be mutually beneficial in a number of ways. For one, charges made by authorized users will earn you rewards, so you can enlist family, friends, and employees to help you collect extra points and miles or qualify for welcome offers and spending bonuses.
Some cards, like the Chase Sapphire Preferred® Card and The Platinum Card® from American Expressmay extend some of their additional benefits to authorized users.
While some cards limit benefits to the primary account holder, others are generous in sharing benefits. For example, the Capital One Venture X lets you add up to four additional cards at no charge, and each of those cardholders gets access to Capital One and Priority Pass lounges with the ability to bring up to two guests at no additional charge.
In conclusion
There is little reason not to add users to your account, as long as you trust the people you add. Set some ground rules about how they can use your card, and monitor your account activity regularly. If you do that, you should be fine.
Related: Everything You Need to Know About Authorized Users
