Adding someone as an authorized user to your credit card can be a powerful way to help them build credit while potentially boosting your rewards earning. But it's also a decision that comes with real risks to your own credit score and financial wellbeing.
Let me walk you through everything you need to know about authorized users—the benefits, risks, and which cards offer the best value for both you and your authorized user.
What Is an Authorized User on a Credit Card?
An authorized user is someone you add to your credit card account who can make purchases using the card but isn't legally responsible for paying the bill. They get their own physical card with their name on it, but all charges flow back to your account.
Here's what happens when you add an authorized user:
- They get charging privileges but you remain fully responsible for all payments
- Their credit may improve from your positive payment history (as long as your card issuer reports to all three credit bureaus)
- They can access many card benefits like purchase protection and travel insurance
- You maintain complete control over the account and can remove them anytime
Think of it like giving someone keys to your car—they can drive it, but you're still the owner and responsible for what happens.
The Benefits of Adding Authorized Users
1. Help Someone Build Credit History
This is probably the biggest reason people add authorized users. If you have excellent credit and payment habits, your authorized user can benefit from your positive history. This works especially well for:
- Young adults just starting their credit journey
- Spouses who haven't built credit in their own name
- Family members recovering from credit issues
The key is that your card issuer must report authorized user activity to credit bureaus. Most major issuers do this, but it's worth confirming.
2. Pool Your Spending for Rewards
Two people using the same rewards card means more spending in bonus categories and faster progress toward welcome bonuses. If your household spends $6,000 monthly across dining and travel, concentrating that on one high-earning card like the Chase Sapphire Reserve can maximize your points earning.
3. Share Premium Benefits
Many premium cards extend valuable benefits to authorized users. For example, authorized users on the Chase Sapphire Reserve get:
- Priority Pass lounge access (valued at $469 annually)
- Global Entry/TSA PreCheck fee reimbursement
- Trip cancellation and interruption insurance
- Purchase protection
The Amex Platinum authorized users also receive impressive benefits including lounge access and hotel elite status.
4. Simplified Finance Management
Having all household spending on one card creates a single statement to review and one payment to make. This can simplify budgeting and expense tracking, especially for couples managing joint finances.
5. Keep Rarely Used Cards Active
If you have a card you don't use much but want to keep for its credit history, adding an authorized user who will occasionally use it can keep the account active without you needing to remember to use it.
The Risks and Downsides
1. You're Liable for All Spending
This is the big one. Every dollar your authorized user spends becomes your responsibility. If they run up $10,000 in charges and can't or won't pay, that debt is yours. There's no legal recourse—you signed up for this responsibility.
2. Your Credit Is at Risk
Your authorized user's spending affects your:
- Credit utilization ratio (if they max out the card)
- Payment history (if you can't make payments due to their spending)
- Average account age (if you're forced to close the account)
A single authorized user who overspends can undo years of careful credit building.
3. Relationship Strain
Money issues destroy relationships. If your authorized user overspends or doesn't contribute to payments as agreed, it can create lasting family tension or end friendships.
4. Additional Fees
Many cards charge for authorized users:
- Chase Sapphire Reserve: $195 per authorized user (increased from $75 in 2025)
- Chase Sapphire Preferred: $0 for authorized users
- Amex Platinum: $195 for up to 3 authorized users
Calculate whether the benefits justify these costs for your situation.
5. Limited Control Options
While you can set spending limits on some cards, your control is limited. You can't prevent specific types of purchases or get real-time alerts for every transaction on most cards.
Best Credit Cards for Authorized Users
Based on the balance of benefits versus costs, here are the top cards for authorized users:
Capital One Venture X ($0 Authorized User Fee)
The Capital One Venture X stands out for offering premium benefits with no additional cost for authorized users. Both primary and authorized users get:
- 2x miles on all purchases
- Priority Pass lounge access
- $300 annual travel credit
- TSA PreCheck/Global Entry credit
Chase Sapphire Preferred (Free Authorized Users)
If you want Chase Ultimate Rewards flexibility without the high authorized user fees, the Chase Sapphire Preferred offers solid value:
- 3x points on dining
- 2x points on travel
- Transfer partners for award bookings
- Strong travel protections
American Express Gold Card (Free Authorized Users)
The Amex Gold Card excels for everyday spending with no authorized user fees:
- 4x points at restaurants (up to $50,000 annually)
- 4x points at US supermarkets (up to $25,000 annually)
- Strong customer service and protections
For Premium Benefits: Chase Sapphire Reserve
Despite the high $195 authorized user fee, the Chase Sapphire Reserve delivers exceptional value if you use the benefits:
- Priority Pass lounge access
- $300 annual travel credit
- Enhanced points earning (4x on travel, 3x dining)
- Comprehensive travel insurance
Who Should Add Authorized Users?
Perfect Candidates
- Parents helping children build credit who can monitor spending closely
- Couples with joint finances and good communication about money
- Those with excellent payment habits who won't be tempted to overspend
- Households wanting to maximize category spending on premium cards
Skip If You're...
- Uncomfortable with financial risk or tight on your budget
- Adding someone with poor spending habits or financial stress
- Unable to afford the additional fees without strain
- Unsure about the relationship's stability (dating, new friendships)
How to Minimize Risk
1. Set Clear Expectations
Before adding anyone, have an explicit conversation about:
- Spending limits and acceptable purchases
- Who pays for what and when
- Consequences for overspending
- How you'll handle disagreements
2. Monitor Regularly
- Set up account alerts for all transactions
- Review statements together monthly
- Track spending against your budget
- Address issues immediately
3. Start Small
Begin with a low credit limit or a card with modest benefits. You can always upgrade later once you've established trust and good habits.
4. Use Spending Controls
Many cards offer:
- Real-time spending alerts
- Category restrictions
- Monthly spending limits
- Ability to freeze the card instantly
5. Have an Exit Plan
Know how to remove an authorized user quickly if needed. Most issuers allow instant removal online or over the phone.
Alternatives to Consider
Joint Credit Cards
Some issuers offer true joint accounts where both parties are equally responsible. This eliminates the power imbalance but requires both parties to qualify.
Secured Credit Cards
For credit building, a secured credit card might be better for teaching responsible habits.
Individual Cards with Shared Benefits
Some families prefer individual cards that can pool points or share benefits. Chase Ultimate Rewards and American Express Membership Rewards allow point transfers between family members.
Frequently Asked Questions
Q: Does adding an authorized user hurt my credit score? A: Not directly. However, their spending affects your credit utilization, and you're responsible for all payments. High balances or missed payments will hurt your score.
Q: Can an authorized user build credit without the primary cardholder having good credit? A: The authorized user's credit improvement depends on the primary cardholder's payment history and account management. Poor payment habits will negatively impact both parties.
Q: What's the minimum age for authorized users? A: This varies by issuer. Chase allows authorized users of any age, while Amex requires them to be 13 or older. Some cards require authorized users to be 18+.
Q: Can I set spending limits for authorized users? A: Some cards offer this feature, but it's not universal. Capital One and Citi offer more robust spending controls than Chase or Amex.
Q: What happens to the authorized user's credit if I close the account? A: The positive history typically remains on their credit report for up to 10 years, but they'll lose the ongoing benefits of your payment history.
Q: Can authorized users see my full account information? A: This varies by issuer. Most allow authorized users to see transactions and balances but not sensitive information like your SSN or payment history from before they were added.
The Bottom Line
Adding an authorized user can be a generous way to help someone build credit while maximizing your rewards earning—if you choose carefully and manage the relationship well.
The key is honest assessment: Are you financially stable enough to handle their spending? Do you trust this person completely? Are you comfortable with the ongoing responsibility?
If you can answer yes to all three, authorized users can provide real value. Start with a card that offers strong benefits at a reasonable cost, like the Chase Sapphire Preferred or Capital One Venture X, and establish good habits before considering premium options.
For building credit history specifically, make sure to check out our complete guide to credit building strategies and our analysis of the best starter credit cards.
Remember: Credit cards are tools, and like any tool, they work best when used thoughtfully and responsibly.
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