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Difference between authorized user and Joint Account holder

Contributor

Difference between authorized user and Joint Account holder

Hi,

I asked discover to add my spouse as authorized user so that my credit limit get reported on her files. They sent me letter for adding Join Account Holder. Does both same thing ??

Walmart TU-724 on 12-2012
EX-707 on 08-2012
EQ-668on 08-2012
_________________________________
Wallet - Discover 1500 | Chase Freedom 1500 | OldNavy Visa 2750 | Walmart 2000 | Amex BCE 6000 | BoA Visa Sig 5000 | Chase Marriott 5000 | Amex Hhonor 2000 | CSP 5000
__________________________________________
9 REPLIES
Frequent Contributor

Re: Difference between authorized user and Joint Account holder

Short and Sweet

 

Authorized User is not responsible for the account.

 

A joint account holder is equally responsible.

Super Contributor

Re: Difference between authorized user and Joint Account holder

They probably assumed as a spouse you would want to make it a joint account. If you want to add an AU you can usually do it right through your online access account.


Valued Contributor

Re: Difference between authorized user and Joint Account holder

Amex has a slightly different take on AUs. They get their own card number and the account owner can manage their CLs as well as set notifications for spending levels. Amex will hold both the account owner and additional card user responsible for the additional card user's spends.

 

I like the Amex reporting spending breakdown by user and also the restaurant detail which breaks out the tip from the main charge.  I wish Chase did this.

 


I have reestablished credit over the last couple years
so my moniker is, well, rather out of date.

WM Discover $1800, WF Plat 12k, Chase Freedom Siggy18k, Amex Plat (60k H/B), Citi AA EWMC 25k
Senior Contributor

Re: Difference between authorized user and Joint Account holder

USAA also holds authorized users responsible for their charges should the primary default. AU agreement also says they'll create a seperate CRA entry (in the AU's name) for the bad account.


Starting Score: 675
Current Score: EX 753 FICO, EQ 737FICO, TU 738
Goal Score: 776 FICO


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Contributor

Re: Difference between authorized user and Joint Account holder

So if I add her as AU then also credit card will be reported to her file ? I just wanted to display my discover CLI on her reports so that she can have better credit history.

Walmart TU-724 on 12-2012
EX-707 on 08-2012
EQ-668on 08-2012
_________________________________
Wallet - Discover 1500 | Chase Freedom 1500 | OldNavy Visa 2750 | Walmart 2000 | Amex BCE 6000 | BoA Visa Sig 5000 | Chase Marriott 5000 | Amex Hhonor 2000 | CSP 5000
__________________________________________
Contributor

Re: Difference between authorized user and Joint Account holder

One more question, will they pull credit file of second applicant in both cases ??

Walmart TU-724 on 12-2012
EX-707 on 08-2012
EQ-668on 08-2012
_________________________________
Wallet - Discover 1500 | Chase Freedom 1500 | OldNavy Visa 2750 | Walmart 2000 | Amex BCE 6000 | BoA Visa Sig 5000 | Chase Marriott 5000 | Amex Hhonor 2000 | CSP 5000
__________________________________________
Super Contributor

Re: Difference between authorized user and Joint Account holder


wealthcreator wrote:

So if I add her as AU then also credit card will be reported to her file ? I just wanted to display my discover CLI on her reports so that she can have better credit history.


Yes, generally this is how it works with AU accounts ~ the AU inherits all of the credit card history ( good or bad ) onto their own credit reports.

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Super Contributor

Re: Difference between authorized user and Joint Account holder


wealthcreator wrote:

One more question, will they pull credit file of second applicant in both cases ??


For a joint application I would think that they'd likely want to do a credit pull.   AU accounts won't result in a credit pull.

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Highlighted
Valued Contributor

Re: Difference between authorized user and Joint Account holder

Amex asks for SS# and does a soft pull on additional cardholders.


I have reestablished credit over the last couple years
so my moniker is, well, rather out of date.

WM Discover $1800, WF Plat 12k, Chase Freedom Siggy18k, Amex Plat (60k H/B), Citi AA EWMC 25k