authorized user

[Anonymous]

Am I responsible for payment if I am listed as an authorized user on my credit report

[llecs]

Legally no. However, if the account owner defaults, then that will go on your CR too. If you suspect the owner may be having problems paying it, then I would bail off that account ASAP.

[RobertEG]

It depends on what you mean by "responsible for payment." An AU is not the legal card holder, so only the card holder is responsible legally for debt on the account.  But by accepting AU status you assume reporting of any account activity on your CR.   If you miss payments as an AU, you will cause derogs to report against the account, hurting both you and the card holder.  Same goes if the card holder causes a derog.  It will also hurt you.  So, yes, there is a lot of resonsibility for making payments as an AU.  And since neither party has total control over this, I would never be an AU or consent to another being an AU on any of my accounts.

[Cleanmachine]

Responsibilities of an authorized user on credit cards have now become a gray area for many reasons.

There have been cases where the credit issuer obtained a judgment in Court on an authorized user when it was established that the purchaser was the authorized user.

As a result of the misuse in the game of an “Authorized User” as many of you know, the Courts are now beginning to side with the financial industries in recouping their money.

I totally agree with “RobertEG” there is now a lot of responsibility of an authorize user. I would recommend that you follow this advice and stay away from being an authorize user and having one on you accounts.

[RobertEG]

I have been biting my tongue, but can no longer refrain.  I think the entire concept of allowing one to assume the credit history of another is rediculous and unfair to those who take responsibility for building their own credit.

I strongly support the efforts under FICO 08 to totally eliminate the piggyback loophole of AUs.