An authorized user is someone you add to your credit card account who can make purchases using a card in their name, but you remain responsible for all charges
When you add an authorized user, the card issuer creates a separate card linked to your account. That person can spend money on the account, but the bill comes to you. You set the limit — some issuers let you cap what an authorized user can spend per transaction or per month, though not all do. The authorized user's name appears on their card and on statements, but the account itself stays in your name.
The key difference from a joint account holder: you have full control. An authorized user cannot close the account, change the billing address, or access customer service on their own. They can only spend. If they run up charges, you pay them. If they miss a payment deadline, it affects your credit, not theirs — at least not directly.
Key Takeaways
- You remain the account owner and are legally responsible for all charges an authorized user makes, regardless of who actually used the card.
- Authorized users typically cannot change account settings, access customer service, or close the account — they can only make purchases.
- Adding an authorized user may help build their credit history if the issuer reports the account to credit bureaus under their name, though this varies by card and issuer.
- You can remove an authorized user at any time by calling the issuer, and the removal typically takes effect within one to two business days.
- Some issuers allow you to set spending limits for authorized users, but not all cards offer this feature.
How authorized user accounts appear on credit reports
When you add an authorized user, the card issuer may report the account to the credit bureaus (Equifax, Experian, and TransUnion) under that person's name. If they do, the account shows up on the authorized user's credit report with the full payment history — on-time payments, late payments, high balances, everything. This can help build their credit score if the account is managed well.
However, not all issuers report authorized user accounts to the bureaus. Some report only to the primary account holder's credit file. Before adding someone as an authorized user specifically to help their credit, contact the issuer and ask whether they report authorized user accounts. If they do not, adding that person will not affect their credit at all.
The authorized user does not receive a separate credit report or score — they see the account on their report as an account they are associated with, but the payment history and account details are shared. If you miss a payment, it damages both your credit and theirs (if the issuer reports it to their file).
When issuers remove authorized user accounts from credit reports
If you remove an authorized user, the issuer stops sending new account information to the credit bureaus, but the account history may remain on the authorized user's credit report for up to seven years. The account will show as closed or inactive, but the payment history stays. This means removing someone does not erase the positive or negative history they built while on the account.
If the account had late payments or high balances while the person was an authorized user, those marks remain on their credit report even after removal. Conversely, if the account was in good standing, the history of on-time payments continues to help their credit score even after they are no longer an authorized user.
Spending limits and controls for authorized users
Some card issuers let you set a spending cap for each authorized user — for example, $500 per month or $100 per transaction. This feature varies widely. American Express, for instance, offers spending controls on many of its cards. Chase, Citi, and Bank of America offer them on select products, but not all. Discover and some smaller issuers do not offer this feature at all.
If your issuer does offer spending controls, you typically manage them through the online account portal or mobile app. You can usually adjust or remove the limit at any time. If an authorized user tries to spend beyond their limit, the transaction is usually declined at the point of sale.
Even if your issuer does not offer built-in spending controls, you can still set expectations with the authorized user about how much they can spend. However, you have no technical way to enforce it — you would have to monitor the account yourself and remove the card if they overspend.
Adding and removing an authorized user
To add an authorized user, call the card issuer's customer service number on the back of your card or log into your online account. You will need the person's full name, date of birth, and sometimes their Social Security number. The issuer will verify the information and create a new card. Delivery typically takes five to ten business days, though some issuers offer expedited shipping for an extra fee.
To remove an authorized user, call customer service or use your online account portal. The removal usually takes effect within one to two business days. The authorized user's card stops working immediately, though the account history may remain on their credit report for years.
Some issuers allow you to temporarily freeze an authorized user's card without removing them entirely. This is useful if you want to pause spending but keep the account open. Check your issuer's options when you call.
Authorized users versus joint account holders
A joint account holder is a co-owner of the credit card account. Both people's names appear on the account, both can access customer service, and both are equally responsible for the debt. If one person runs up charges, the other is still liable. A joint account holder can close the account, change the billing address, or make other account changes.
An authorized user has none of these powers. They can only spend. You control the account entirely. If you want someone to have full access and shared responsibility, a joint account is the right choice. If you want to let someone use the card but keep control yourself, an authorized user is the way to go.
Some couples or family members prefer joint accounts because both people have equal say. Others prefer authorized user arrangements because one person manages the finances. There is no right answer — it depends on your relationship and how you want to handle money.
Risks of adding an authorized user
The main risk is that you are liable for all charges. If an authorized user makes fraudulent purchases or spends recklessly, you still owe the money. The card issuer will not refund charges just because someone else made them — you are the account owner.
If the authorized user damages their credit while on your account (for example, by making late payments), that damage stays on their credit report even after you remove them. You cannot undo the history.
Adding an authorized user also increases your credit utilization if they spend heavily. If your card limit is $10,000 and an authorized user charges $7,000, your utilization jumps to 70%, which can lower your credit score. This affects you, not them.
Frequently Asked Questions
Can an authorized user make a purchase without my permission?
Yes. Once you issue them a card, they can use it to make any purchase up to the card limit (or their individual spending limit, if you have set one). You cannot control individual transactions. If you are concerned about overspending, set a spending cap through your issuer or monitor the account closely.
Does adding an authorized user hurt my credit score?
Not directly. Adding an authorized user does not trigger a hard inquiry. However, if the authorized user spends heavily and increases your credit utilization, your score may drop slightly. The impact is usually small and temporary.
What happens if an authorized user makes a fraudulent purchase?
You are still responsible for the charge unless you report it as fraud. Contact your issuer immediately and dispute the transaction. The issuer will investigate, but because the person is an authorized user (not a thief), the process may be different from a standard fraud claim. Document everything and follow your issuer's dispute process.
Can I add a minor as an authorized user?
Yes, most issuers allow it. The minor does not need their own credit history or Social Security number — you provide your information as the account owner. This is a common way to introduce young people to credit. However, the minor can still make purchases up to the card limit, so set clear rules and monitor spending.
What if an authorized user has bad credit — will it affect mine?
No. An authorized user's existing credit history does not affect your account or your credit score. Only the shared account history matters. However, if the authorized user makes late payments on your shared account, that damages both your credit and theirs (if the issuer reports it to their file).