Make money adding authorized users to your credit card

Discover the best credit cards in every category as of Check out our joney of the best online savings accounts make money adding authorized users to your credit card Figure out what’s right for you in an online stock broker with our guide to managing your own portfolio. Before you apply for a loan, here’s what you need to know. Published in: Credit Cards Jan. You should know that offers on The Ascent may be from our uour — it’s how we make money. Chase makes it easy to add an authorized user to your credit card. If you want another person to be able to pay for purchases using your Chase cardyou can set them up as an authorized user. Anything they do with the card can affect both your credit and theirs. For this reason, you should be very careful about who you add as an authorized user. The most common types of people to add as authorized users are:. Make sure all the information you enter is accurate and current.

What is an Authorized User?

Credit Card Insider is an independent, advertising supported website. Credit Card Insider receives compensation from some credit card issuers as advertisers. Credit Card Insider has not reviewed all available credit card offers in the marketplace. Content is not provided or commissioned by any credit card issuers. Reasonable efforts are made to maintain accurate information, though all credit card information is presented without warranty. Credit Card Insider has partnered with CardRatings for our coverage of credit card products. Credit Card Insider and CardRatings may receive a commission from card issuers. A list of these issuers can be found on our Editorial Guidelines. You can usually add an authorized user by logging in to your credit card account online. Authorized users get their own cards, which can be used just like a regular credit card, but the primary cardholder is always responsible for the account balance.

Is there a fee for authorized users?

Looking to build your credit fast? If you already have great credit established, adding a trustworthy authorized user to your card can help you earn more rewards more quickly, while helping someone else build his or her credit. Keep reading to learn more, or jump down to our instructions for adding authorized users for different card issuers. But you can add more official cardholders to your account, known as authorized users. An authorized user AU is a secondary cardholder, with some of the rights and privileges of the primary cardholder. Authorized users will get copies of the original card, and can use it just like any other credit card. The crucial thing to understand about authorized user cards is the legal liability to pay.

Is there a fee for authorized users?

Most credit card issuers let you add an additional person to your credit card account, such as a child or employee, without having this person actually apply for the credit card themselves. This additional user is called an authorized user. The authorized user receives a credit card with his name on it, and he can use the card just the same as if he were the primary account holder. All purchases the authorized user makes go to the same account and appear on one credit card statement. The authorized user shares the credit limit with the primary account holder and his purchases reduce the amount of credit available to both users. Unlike a joint account holder , an authorized user doesn’t have to go through a credit check to be added to the credit card account. Some credit card companies may charge a fee for adding authorized users.

How your credit is affected

.

Using Credit Cards

Cosigning to open a joint account is another way to share your credit card, but this method is a lot riskier for both parties involved. Just remember that only the primary cardholder is legally responsible for paying the card balance. Credit Card Insider has partnered with CardRatings for our coverage of credit card products. Adding an authorized user for a Citi card. Different issuers will also give authorized users different online account permissions, like being able to view statements, make payments, or change contact info. Any late payments or derogatory activity on a joint card could also haunt both of your credit reports and scores for many years to come. This latter case is more common for high-end travel credit cards.

We’ll Be Right Back!

Authorized users will get copies of the original card, and can use it just like any other credit card. Some rewards credit cards offer a bonus if you add an authorized user to your account. Which card would you like to compare? The policy should be reviewed by legal counsel before being implemented. If there’s ever a lawsuit regarding debts on this account, the authorized user won’t be included, even if that person was responsible for the purchases. Authorized users may or may not have online account access — again, this depends on the issuer. Adding an authorized user for a Chase card.

What is an Authorized User?

Credit Card Insider is an independent, advertising supported website. Credit Card Insider receives compensation from some credit card issuers as advertisers. Credit Card Insider has addig reviewed all available credit card offers in the marketplace. Content is not provided or commissioned by any credit card issuers. Reasonable efforts are made to maintain accurate information, though all credit card information is presented without warranty. Credit Card Insider has partnered with CardRatings for our coverage of credit card products.

Credit Card Insider and CardRatings may receive a commission from card issuers. A list of these issuers can be found on our Editorial Guidelines. You can usually add an authorized user by logging in to your credit card account online.

Authorized users get their own cards, which can be used just like a regular credit card, but the primary cardholder is always responsible for the account balance. Looking to build your credit fast? If you already have great credit established, adding a trustworthy authorized user to your card can help you earn more rewards more quickly, while helping someone else build his or her credit.

Keep catd to learn more, or jump down to our instructions for adding authorized users for different card issuers. But you can add more official cardholders to your account, known as authorized users. An authorized user AU is a secondary cardholder, with some of the rights and privileges of the primary cardholder. Authorized users will get copies of the original card, and can use it just like any other credit card. The crucial thing to understand about authorized user cards is the legal liability to pay.

Imagine you add an authorized user to your account, and that person racks up a ton of charges but refuses to pay you for. That can be pretty bad for your credit utilizationand if you end up making any late payments the negative credit score impact could be even worse.

Aside from this risk, authorized user accounts are pretty great in a lot of ways. There are several cases in which adding an authorized user can be a smart move, either for you the primary cardholder or the other person.

Parents may add their creit, for example, to start teaching them about credit and building their credit history early on. We go over situations like that.

Remember that the primary account holder and any AUs will share a single credit line. Any purchases made will reduce the total available credit for everyone involved, so be sure to keep a close eye on your revolving utilization ratio.

You must have consent from the authorized user to add him or her to your credit account. Otherwise, the card issuer can close your account for violating the terms. Cosigning to open a joint account is another way to share your credit card, but this method is a lot monfy for both parties involved. Any late payments or derogatory activity on a joint card could also haunt both of your credit reports and scores for many years to come.

Adding an authorized user to your card is usually quick and easy. It might even seem too quick and easy, but that can be true for regular credit card applications. You can add additional users to your account at any time, for cards that allow it. Some credit card companies will even let you add authorized users during your initial account application. We have a set of specific instructions for adding authorized users for each card issuer.

To add an authorized user, just log in to your online account and find the appropriate link. It will probably say something like:. After inputting crdit required information you can submit your request. The card issuer may approve your request instantly, or it could take some time to verify the identity of the authorized user. Uathorized after, either you or the authorized user will receive a new card in the mail. It will need to be activated just like any other card.

Some credit card companies may have usesr requirements for authorized users, while others may not. American Expressfor example, requires additional users to be at least yoour, unlike most other issuers.

Adding an authorized user to an American Express card. You may yoir to add authorized users or employee cards to simplify bookkeeping, and get all your expenses in one account. This is also a good way to give your employees an easy payment option for business spending or travel, while taking advantage of protections and benefits. Just remember that only the primary cardholder is legally responsible for paying the card balance.

You can designate someone as an authorized user to help him or her rebuild or establish a credit history. The issuer may begin reporting card activity from the point at which the AU account is opened, or it may report the entire account history for that card — going back to the date it was opened by the primary cardholder.

This could include any late payments that were previously made, before the authorized user was added. So, we recommend only becoming an authorized user on accounts with spotless payment histories, in case the full account history is reported on your credit reports. If an authorized user card is added to your credit reports, your scores might benefit from the account in several ways.

Keep in mind each card issuer has its own minimum age requirement for authorized users, and they vary quite a bit. Some have no requirement at all. And some issuers set a limit on the moeny of AUs you can have on a single account.

You can see all those details belowalong with instructions for adding authorized users with every major card issuer. If the card is used responsibly and the account is in good standing, your credit scores may improve. But if negative activity is reported, like maxed out credit limits and late payments, the AU status could push your credit scores. If the AU charges more than expected, the primary cardholder will be on the line to pay. The primary cardholder can also make this request on your cadr.

Once your AU status is revoked, the account should be deleted from your credit reports. Depending on autgorized particular card, you may be able to set spending limits for AUs.

Authorized users may have certain account management privileges, depending on the particular card issuer. You, as the primary cardholder, may be able to give or take away some permissions. With American Express, you can give Account Managers either full or limited access.

Setting the access privileges for an authorized user on a Citi credit card. Authorized users generally earn spending rewards, just like primary cardholders.

But all the rewards go into a single reward bank, usually only accessible by the primary cardholder. That card will have the same exact rewards program, providing the same amount of cash back for these purchases. You can designate many authorized users and collect a lot of rewards from their spending.

This could be pretty profitable if they pay you back for what they charge. However, introductory bonuses are not repeated for authorized users.

Any purchases an AU makes will typically contribute towards the spending requirement for intro bonuses. So, you can use this method to reach minimum spends more quickly.

Although authorized users can typically make any kind of purchases, Barclays allows you to set purchase category restrictions for authorized users at least for some Barclays cards. This latter case atuhorized more common for high-end travel credit cards. If any given benefit is available for use an unlimited number of times, or up to a certain limit, it will probably be available for authorized users. But some benefits can only be used once, and this will be true no matter how many authorized users you designate.

There are also cases where authorized users will get partial access to certain benefits. In general, if you have to pay for an authorized user account, it will probably get some decent addinb. Many credit cards come with a variety of shopping and travel protections, all of which usually apply to authorized users. These include benefits like:. If you have employees making business purchases and traveling, this is an opportunity to carx more rewards and make their lives a bit easier. Rather than reimbursing an employee for the purchases she makes, you can make her an authorized user on your business credit card.

Certain items you buy may also be covered by benefits like Purchase Protection and Extended Warranties when eligible. Plus, you can track your business spending more easily because all the transactions will be collected within the same main account. When it comes to travel, having a credit card can be a great asset. You can use these benefits to help your employees have smoother trips, and arrive in better shape when they reach their destinations. In general, you should have a good relationship with anyone you share a credit card account.

Remember that youd relationships can change quickly, but legal relationships tend to be more difficult to get out of. You can always remove someone as an authorized user or cancel your own authorized user account. There are several cases in which it might be a good idea to designate an authorized user, or become one. Otherwise, you and the authorized user could suffer with lower credit scores and all the negative consequences that result, like higher interest rates and difficulty qualifying for financing.

Team up for the win! Want to give your kid a credit boost? You can just add them as authorized users and keep the extra card yourself, or cut it up.

Or, if your children are older and have demonstrated some financial responsibility, you can give them cards of their own to use. This can make all of your lives easier, as they can just use their cards without having to borrow yours. You can also authoized AU status as a way to teach your kids how credit works, and how to earn excellent credit scores.

Depending on the card, you may also be able to set spending limits for authorized users, just in case.

Why add someone to your Chase card?

The person who owns the credit account is called the primary cardholder. The authorized user may be issued his own credit card with his name on it, but the account belongs to the primary cardholder. Many card issuers report credit activity to the credit bureaus for the authorized users, but some may not. The primary cardholder will need to ask her issuer if this information is reported in order for the authorized user to receive the benefits of good credit history.

Using Credit Cards

The primary cardholder has to add an authorized user. This can be done by calling the make money adding authorized users to your credit card card issuer or logging onto the online account. Many issuers will issue a second card for the authorized user, but it will generally be mailed to the primary cardholder, who can choose to give it to the authorized user or not. There may be a case that an authorized user may want to be removed from a card, or the primary cardholder wants to remove. Either the primary cardholder or authorized user can call the issuer to remove the authorized user from the account. Even if the judge assigns the debt to one of you, non-payment will affect both account holders. Instead, add your loved one as an authorized user if you wish. However, keep in mind that you will be financially responsible for his charges, so set clear guidelines on how much is appropriate for him to spend monthly. Couple with credit card image via Shutterstock. At NerdWallet, we strive to help you make financial decisions with confidence. To do this, many or all of the products featured here are from our partners. Our opinions are our. Cash Back.