Credit Card Authorized Users, How Do They Work?

Credit card authorized users can play a big role in your credit card strategy and in managing your family's credit. But when it comes to award travel, authorized users raise a lot of questions. Can authorized users earn their own welcome offers? How do authorized users affect 5/24? This FAQ is designed to answer all these questions and explain how authorized users work.

What is a credit card authorized user?

An authorized user is someone whom you add to your credit card account so that they receive their own credit card. That credit card will have the authorized user's name on it and they can use it as they wish.

However, you–the primary account holder–will be responsible for paying the bills. So only add as an authorized user someone you trust completely.

Does being an authorized user prevent me from earning a welcome offer for that same card?

No. Being an authorized user NEVER prevents you from earning a welcome offer for that same card as long as you satisfy the bank's application rules.

For example, if you are an authorized user on someone's Chase Sapphire Preferred card, you can still earn a welcome offer for the Chase Sapphire Preferred card if you are approved for that card.

Can I refer an authorized user to the same card and earn a referral bonus?

Yes. Since being an authorized user does not prevent you from earning a welcome offer for the same card, the primary account holder can refer the authorized user and earn a referral bonus if the authorized user is approved for the card.

Does being an authorized user count against 5/24?

Generally, yes, if the underlying credit card is less than 24 months old. If the credit card account shows up on the authorized user's personal credit report as having been opened less than 24 months ago, Chase will be able to see it and they will count that as a 5/24 credit card. Until a few years ago, Chase would disregard any accounts for which you are an authorized user if you explained during a reconsideration call that you were not financially responsible for that account and that you were just an authorized user. This is no longer the case.

This means that if you are at 4/24 and your spouse adds you as an authorized user to their credit card, Chase will consider you to be at 5/24. As such, we do not recommend having yourself or your P2 added as authorized users on new cards. If the credit card is older than 24 months, then there will be no impact to the authorized user's 5/24 status. However, American Express reports an authorized user card as having been opened on the date the person becomes an authorized user, regardless of the age of the card.

Meanwhile, adding others as authorized users to your credit cards has no impact to your own 5/24 status.

How can my P2 help meet minimum spend on a card without adding them as an authorized user?

You can load your credit card to P2's mobile wallet, such as Apple Pay. This will allow your P2 to use your new card through their mobile wallet without needing to carry your physical card or having them added as an authorized user.

Who earns points from the authorized user's purchases?

Purchases made by authorized users will earn points for the primary cardholder. Purchases by authorized users also contribute to minimum spend requirements. Bottom line: when it comes to earning points or miles, authorized users work for you. Purchases made by an authorized user are no different than purchases made by the primary cardholder.

How does being a credit card authorized user affect your credit?

Being an authorized user on someone's credit card can be helpful for you if they have a more established credit than you. This is because the authorized user gets to piggy back on the primary cardholder's credit history. That is why it's so common to see parents adding their children as authorized users to one of their credit cards.

Meanwhile, adding authorized users does not affect the primary account holder's credit, unless the authorized user goes on a spending spree that affects your credit utilization ratio.

You should also on be added to someone's account as an authorized user if you trust them. That is because if they are late paying the card it will ultimately hurt the authorized user's credit as well.

Do authorized users have to be related to the primary account holder?

No, you can add whomever you wish, including friends or non-blood relatives.

Are there any minimum age limits to adding someone as an authorized user?

This varies by bank, here are the age restrictions for each bank:

• American Express
  • They impose a minimum age requirement of 13 years old for authorized users.
    • But Amex does not report authorized user credit history of minors, so they won't start reporting until the authorized user turns 18. So adding a minor as an authorized user to your Amex card is unlikely to help them build credit.
• Bank of America
  • They have no minimum age requirement
• Capital One
  • They have no minimum age requirement
• Chase
  • They have no minimum age requirement
    • However, according to Chase's website, Chase “does not report the authorized user credit history of minors.” So adding a minor as an authorized user to your Chase card is unlikely to help them build credit.
• Citi
  • They have no minimum age requirement
• Discover
  • They have a minimum age requirement of 15 years old
• U.S. Bank
  • They have a minimum age requirement of 16 years old
• Wells Fargo
  • They have no minimum age requirement
    • Like Chase and Amex, Wells Fargo only reports authorized user credit history if the authorized user is at least 18 years old.

Do authorized users enjoy the same benefits as the primary account holder?

This varies widely depending on the credit card. Check your card's benefits guide or look at our credit card reviews.

In reviewing any credit card terms, keep in mind that each bank users different terms to refer to the primary account holder and authorized users. Terms such as primary cardmember, basic card member, and the like refer to the primary account holder. Terms like additional card member refer to authorized users.

Are there any fees associated with adding credit card authorized users?

This depends on the card, so check your card's benefits guide or look at our credit card reviews. Cards without an annual fee do not charge fees for adding authorized users. Meanwhile, many premium cards (those with a high annual fee) charge an annual fee for authorized users.

How do Authorized Users Work: ToP Thoughts

Authorized users can be an important part of managing your credit and overall credit card strategy. As with everything else in award travel, it's important to understand the nuances so you can position yourself to earn points efficiently and intelligently. We hope this FAQ helps demystify authorized user rules and effects.