Does adding an authorized user affect my credit score?
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 perks, such as lounge access for Capital One Venture X Rewards Credit Card authorized users.
Before adding someone to your card, you may wonder if the authorized user’s credit history will affect your own. We share what you need to know about the ins and outs of authorized users.
Will an authorized user affect my credit score?
Most credit cards allow you to add authorized users to your account, which enables that person to make purchases on your credit line using their own personalized cards. But if you’re concerned that adding a user might negatively impact your credit rating, fear not. The reality is that adding an authorized user is more likely to affect their credit score than your own.
This is because when you add an authorized user, the account may appear in that person’s credit report, so your account history, balance and credit limit are factored into their score. This is why adding a user can help someone establish or improve credit — they can take advantage of your high rating. Of course, any missed payments or other derogatory marks will also appear on their account, so I don’t recommend adding authorized users unless you’re on top of your finances.
Conversely, authorized users won’t appear on your credit report, but their card activity will. You’re ultimately responsible for any charges they make, including ones they don’t tell you about. If you end up carrying a balance or missing a payment because an authorized user made charges you didn’t approve or weren’t aware of, you could be negatively affected.
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 several ways. For one thing, charges made by authorized users will earn rewards, so you can enlist family, friends and employees to help you pick up extra points and miles or to meet the requirements for welcome offers and spending bonuses.
Some cards, such as the Chase Sapphire Preferred® Card and The Platinum Card® from American Express, may extend some of their additional perks to authorized users.
While some cards restrict benefits to the primary account holder, others are generous about sharing perks. For example, the Capital One Venture X lets you add up to four additional cards at no cost, and each of those cardholders gets access to Capital One and Priority Pass lounges with the ability to bring up to two guests for no additional cost.
Bottom line
There’s little reason not to add users to your account as long as you trust the people you are adding. 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.
