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Impact of adding someone as an Authorized User

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Trudy
Valued Contributor

Impact of adding someone as an Authorized User

I know there's been a lot of discussion regarding AU accounts which I have not paid much if any attention to because it never applied to me.  However, I am thinking about adding someone to a card to aid in their recovery.  I don't plan on providing them a card to use, just adding so they can benefit from it.

 

Is there any negative impact to me if they do not have a card or use the account?  Also, I suppose as the card holder I could remove at any time without any action needed by the AU?  

FICO - 8: 05/05/23
Message 1 of 14
13 REPLIES 13
K-in-Boston
Credit Mentor

Re: Impact of adding someone as an Authorized User



Usually the discussion is on how it impacts the authorized user rather than the primary cardholder.  Depending on the lender, they may be able to call and request a replacement card since theirs is "lost" and have it sent to an address that is not your own - remember that YOU are solely responsible for any and all charges that an AU may make with or without your permission.  Yes, you can remove an authorized user at any point, although with most lenders that will actually require a phone call; usually much easier to add one.

Message 2 of 14
Trudy
Valued Contributor

Re: Impact of adding someone as an Authorized User

Thanks.  You're right, when searching I was unable to locate anything about the primary card holder.  I'm still tossing it around and your response helps me understand more.  If I'm able to see that a card has been issued through reviewing my online account than I'll feel confident moving forward.

FICO - 8: 05/05/23
Message 3 of 14
chuckwood
Regular Contributor

Re: Impact of adding someone as an Authorized User

I know with some you have the option to just turn the card off once you add them.

Message 4 of 14
FlaDude
Valued Contributor

Re: Impact of adding someone as an Authorized User

I have my wife and daugther as AUs on some of my cards. As far as I can tell it has no affect on my scores.

Scores: March 21 FICO 8: EX 810, TU 808, EQ 813
AoOA: closed: 36 years, open: 25 years; AAoA: 11.8 years
Amex Gold, Amex Green, Amex Blue, Amex ED, Amex Delta Gold, Amex Hilton Surpass, BoA Platinum Plus, Chase Freedom Unlimited, Chase Amazon, Chase CSP, Chase United Explorer, Citi AA Plat, Sync Lowes, Sync JC Penney - total CL 145k
Loans: Chase car loan (35k/6yrs 0.9%)
Message 5 of 14
Gmood1
Super Contributor

Re: Impact of adding someone as an Authorized User

@Trudy 

The AU cards if issued are always sent to the primary user's home address.

Capital One and Navy Federal give the option of no CC being issued at all. I'm sure there are others that give this option as well. I can't remember the others at the moment.

Message 6 of 14
Trudy
Valued Contributor

Re: Impact of adding someone as an Authorized User

This is helpful.  Thank you all.

FICO - 8: 05/05/23
Message 7 of 14
Kforce
Valued Contributor

Re: Impact of adding someone as an Authorized User

More things to consider !

1)  When you add an AU with some issuers they only require a name, however if the person you are adding is not living with you they might or might not get linked for reporting.

2)  Some require full SSN, Address & Name to add an AU. (Sure to be linked but AU needs to give you his/her social)

3) Some issuers report AU account as new so they don't get age from card. (AMEX)

Message 8 of 14
Anonymous
Not applicable

Re: Impact of adding someone as an Authorized User


@Kforce wrote:

More things to consider !

1)  When you add an AU with some issuers they only require a name, however if the person you are adding is not living with you they might or might not get linked for reporting.

 

 

Very true. I was added to my sister's card and it never reported. 


 

Message 9 of 14
Wavester64
Valued Contributor

Re: Impact of adding someone as an Authorized User


@Gmood1 wrote:

@Trudy 

The AU cards if issued are always sent to the primary user's home address.

Capital One and Navy Federal give the option of no CC being issued at all. I'm sure there are others that give this option as well. I can't remember the others at the moment.


I always wondered what the impact is if you are an AU with better credit than the card holder?

For example, we'll be into the 2030s before I will be 5/24 to get a CHASE card Smiley LOL Let's say DW is 2/24 and can get a CHASE card, and puts me down as an AU. For the sake of this hypothetical story, lets say I monitor the account 100%. However her credit is not as good as mine and she lets her other cards tank (not the CHASE since she doesn't use that one) does my credit get affected?






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Message 10 of 14
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