What is an Authorized User Account?

What is an authorized user account?

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An authorized user account is a credit card account which has been opened by the primary cardholder for an additional user. Adding a person as an authorized user usually but does not necessarily mean there is an extra credit card issued. Some personal information may be required in order to be added as an authorized user on an account. However the holder/owner of the account does not have to provide the user their private info if they choose not to. This account is many times reported to the credit bureaus by the issuing banks. Reporting history is subject to change according to each card issuing institution as well as the credit bureaus own internal rules and guidelines. Key factors to understand are:

  • The primary owner of the card does not have to give the user access to the card nor do they need to share any personal or private data.
  • The user may be required to provide personal and private information to the owner of the card in order to be added as an authorized user.
  • Limits and restrictions in reporting by institutions apply individually to each company.
  • The number of authorized users are usually restricted by each credit source.