A user authorized to do so can authorize charges on the account of another person but isn’t ultimately accountable for any charges.
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Who is an authenticated user?
Authorized users are one who has the right to use another person’s credit card. The person who controls the credit card is referred to as the primary cardholder.
Authorized users could receive their own credit card bearing their name, however, the account is owned by the cardholder who is the primary account holder.
What obligations are a user with a valid authorization to perform?
Users who are authorized can make purchases through the account, however, they generally, cannot make changes to the account such as raising the credit limit or adding additional authorized users.
The authorized users don’t have to pay for purchases using the credit card regardless of the amount they spend.
Changes and payments are the charges of the primary cardholder.
Does credit activity get reported to the credit bureaus of the user who is authorized?
One of the major benefits of becoming an authorized customer is the ability to piggyback on the primary cardholder’s positive credit habits which will help improve your credit score. A majority of card issuers will report credit activity to credit bureaus in the case of authorized users, however certain companies may not.
The primary cardholder has to contact their credit card company to report this information to allow the authorized user to reap the benefits of having a strong credit score.
Do I sign up someone or get the added user’s name as an authorized credit card?
The cardholder who is the primary user must create the user’s authorization. This can be accomplished via contacting your credit card issuer, or by logging into your online account. A lot of issuers will issue a second card for an authorized user, however, the card will be sent directly to the cardholder who is primary who can decide to either give it to the authorized person or not.
If the card isn’t issued by the authorized person, the user may choose to utilize the primary cardholder’s account or profit from the credit benefits of the cardholder’s excellent financial practices.
Considering an authorized user?
* Do you want to add your baby?
* Do you want to include your girlfriend or boyfriend?
* Do you want to add parents?
* Should you include your child?
How do I get someone removed or removed from being an authentic user?
What happens if your situation changes?
Maybe the boyfriend you are dating is an administrator of your account. You break up.
Maybe you’re an authorized user for your account for a family member who has passed away.
Perhaps you’re an authorized user that’s been through some financial issues and doesn’t want to be enticed by the lure of a credit card.
It’s a breeze to remove someone or yourself — from being an authorized user through an email to the credit card company.
(As mentioned above authorized users don’t generally have the power to alter their account, but the one exception is when they want to be removed from the agreement.)
Which is more preferable: an approved user relationship, or a joint account holder?
Joint credit card accounts are different the authorized-user arrangement in two important ways:
In the event of an account that is joint, the two of you are equally responsible for the amount of the debt.
Joint credit card accounts typically require setting up at the front end in the process of applying. (Authorized customers can be added at any time after the account has been established.)
There aren’t many issuers that offer joint credit cards these days. If you can find one that does this option, it could be beneficial in certain situations, like couples who want to consolidate all their financial obligations all under one roof. Be aware of risks that could arise because the shared risk could be a source of trouble when the relationship deteriorates.
In the event of divorce, for example, no clear guidelines for who is responsible for the debt as well as credit scores could suffer when payment isn’t made. Even even if the judge assigns an obligation to one or both of you non-payment could impact both accounts.
In the event of a situation that is not yours depending on your circumstances, adding a family member to the account as an authorized user may be the most beneficial option. This person will enjoy the benefits of having good credit as long as you follow good credit practices and your lender is able to report the activity and you’ll still have control over your account.
Keep in mind that you’ll be completely financially liable for authorized user’s fees Therefore, it is advisable to establish precise monthly spending guidelines prior to the time.
