7+ The Best Ways Can Being An Authorized User Hurt Your Credit. However, these benefits don’t always show up on all credit scores or reports. So, for this reason, removing a person as an authorized user could hurt their credit score if the credit utilization significantly increases.
However, bank of america, capital one, chase, citi and. There also may be a fee for adding an authorized user, so consult with your credit card provider to determine if it charges a fee and how much it is. Below are three ways being an authorized user might impact your credit.
Anyone Can Be An Authorized User As Long As They Meet The Card Issuer’s Age Requirements;
For example, american express has a minimum age of 13, discover 15 and us bank 16. Being an authorized user could help you build credit. Being an authorized user on a credit card can affect the credit of both the primary account holder and the added user.
Just As Your Credit Score Is Affected By The Primary Users Positive History, Its Also Affected By Any Negative Activity.
Simply adding an authorized user to an account will not have an impact on your credit score, as. Keep in mind that any credit score boost you receive will only persist as long as you remain an authorized user on the credit card account. Adding someone as an authorized user may help your score as well in some instances.
Not All Credit Card Issuers.
In many cases, your usage will affect your credit score just as if you were the primary user. So, for this reason, removing a person as an authorized user could hurt their credit score if the credit utilization significantly increases. Removing your partner as an authorized user.
If You Have An Account You Rarely Use, The Card Issuer Might Be Tempted To Close Your Account Due To Lack Of Use.
If you have a total credit line of $20,000 on your own cards and $15,000 on your authorized user accounts, your total credit line, which used to be $35,000 will now drop to $20,000. Just note that some credit card issuers have minimum age requirements for becoming an authorized user. Being added as an authorized user on someone else’s credit card account can help improve your bad credit score and build your credit.
1) Lowering Your Credit Card Utilization.
However, the reality is that adding an authorized user is more likely to affect their credit score than your own. Yes, an authorized user can affect the primary accountholder's credit score if the authorized user is able to charge purchases to the account, either with their own card or because they know the account number. Kendall morris, credit cards moderator.