{"id":230823,"date":"2025-06-20T15:00:53","date_gmt":"2025-06-20T15:00:53","guid":{"rendered":"https:\/\/evertise.net\/?p=119316"},"modified":"2025-06-20T15:00:53","modified_gmt":"2025-06-20T15:00:53","slug":"how-to-build-credit-when-you-are-the-authorized-user","status":"publish","type":"post","link":"https:\/\/ipsnews.net\/business\/2025\/06\/20\/how-to-build-credit-when-you-are-the-authorized-user\/","title":{"rendered":"How to Build Credit When You are the Authorized User"},"content":{"rendered":"

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Good credit can help individuals secure a mortgage for their dream home, a loan for their own business, or even rewards credit cards that earn rewards or cashback on daily purchases. However, building good credit from scratch can be tough. Many people wonder <\/span>how to build credit<\/span><\/a> when they can\u2019t afford a deposit for a secured credit card or interest on a credit builder loan. Becoming an authorized user may be the answer.\u00a0<\/span>\u00a0<\/span><\/p>\n

Who Is an Authorized User?\u00a0<\/strong><\/p>\n

Primary credit cardholders can add authorized users to their accounts, granting them the ability to use the card for purchases, payments, etc. This co-user is known as an authorized user. An authorized user usually gets their physical credit card linked to the same account, but they\u2019re not responsible for paying the credit card balance. When an individual becomes an authorized user on a partner or family member\u2019s credit card account, the account is added to their credit profile, and they can benefit from the primary account holder\u2019s good credit habits.<\/span>\u00a0<\/span><\/p>\n

How Being an Authorized User Can Build Credit\u00a0<\/strong><\/p>\n

Becoming an authorized user may give a borrower\u2019s credit a quick boost. If the primary cardholder uses their credit card responsibly, their positive behaviors can be reflected in the authorized user\u2019s credit report as well. Here\u2019s how this strategy can be beneficial.<\/span>\u00a0<\/span><\/p>\n

Decrease Credit Utilization\u00a0<\/strong><\/p>\n

Credit utilization ratio is the percentage of available credit a borrower is currently using, and it\u2019s a key factor in credit scoring. Becoming an authorized user increases an individual\u2019s available credit. If the primary cardholder keeps their utilization low, the authorized user can benefit from this as well. A lower credit utilization ratio may indicate responsible credit use and can contribute to a higher credit score over time.\u00a0<\/span>\u00a0<\/span><\/p>\n

Increase Average Age of Accounts\u00a0<\/strong><\/p>\n

An individual\u2019s length of credit history plays a crucial role in credit scores. Lenders want to see a long history of responsible credit use. Adding an authorized user to an old account may increase the average age of their credit history, potentially leading to a credit score increase. Becoming an authorized user is especially helpful to anyone with a thin credit file.\u00a0<\/span>\u00a0<\/span><\/p>\n

Create or Extend a Payment History\u00a0<\/strong><\/p>\n

If the primary cardholder consistently makes payments in full and on time, those payments will appear on the authorized user\u2019s credit report as well. This can help establish or continue a positive payment history, making it easier to qualify for credit in the future.<\/span>\u00a0<\/span><\/p>\n

What Are the Risks of Being an Authorized User?<\/span>\u00a0<\/span><\/p>\n

Though becoming an authorized user offers potential benefits, there are also risks worth considering.<\/span>\u00a0<\/span><\/p>\n