Before we learn how an authorized user builds credit, let’s look at what an authorized user is. While it is true that having good credit is everyone’s dream, building good credit is not something that happens overnight, on the contrary, it takes investment, time and patience.
Now, let’s get down to the details. When someone gets a credit card, this allows adding another person to the account, adding one or more people is giving them the right to charge the cardholder’s credit card and this is where it is known as an authorized user, anyone who is added to someone else’s account.
Being an authorized user means becoming the person who is allowed to use someone else’s credit card account, although the authorized user is not responsible for paying the bill, this is the cardholder’s job. So it is recommended to add people close to you as an authorized user so that you can have a friendly partnership.
This is how making someone an authorized user works:
The cardholder calls the credit card issuer and asks to add someone as an authorized user.
The credit card issuer will ask for the authorized user’s information; name, address, date of birth and social security number.
A new credit card with your name on it is sent to the primary cardholder.
Once that is done, let’s get down to the part you are most interested in; how the authorized user will start building credit.
When you have been added to someone else’s credit card account, this will help you build your own personal credit. The Bank will be given the task of informing the credit bureau of your new movement, in this case, being added to a credit card account.
Therefore, if a credit card appears on your credit history once you become an authorized user, all history associated with that account will also be added to your credit report. Being added to a credit card with a good payment history means that the payment history also becomes yours.
