How to Become an Authorized User on a Credit Card
These days, having a credit card is quickly becoming a necessity for most people. Whether you’re looking to build your credit or you just need more ways to pay for things, getting a credit card can be a great option. One option that many people don’t know about is becoming an authorized user on someone else’s credit card.
What is an Authorized User?
An authorized user is someone who is given permission to use a credit card that is not in their name. The primary cardholder, usually a parent or guardian, allows the authorized user access to their card. This means that the authorized user can make purchases on the account, but the primary cardholder remains liable for any debt incurred.
Benefits of Being an Authorized User
Build Credit
One of the greatest advantages to becoming an authorized user is the ability to build credit early on. Since the authorized user is accountable for any transactions related to the card, their credit score can directly benefit. The primary cardholder, however, is still liable for any debt accumulated by the authorized user.
Access to Better Rewards
If the primary cardholder has a rewards program, the authorized user will benefit from these rewards as well. This means the authorized user will also be able to take advantage of any cash back or points programs associated with this card.
Avoid Bank Accounts
Becoming an authorized user to someone else’s credit card is also a great way to avoid having to open up a bank account. This is especially useful for people who are under 18 or cannot open a bank account for other reasons.
How to Become an Authorized User
Ask the Primary Cardholder
The first step to becoming an authorized user on a credit card is to speak directly with the primary cardholder. Make sure the cardholder knows what being an authorized user entails and that they are comfortable with you using their credit card.
Have the Cardholder Add You
This is the most important part. If the primary cardholder does decide to add you as an authorized user, they will need to request that their card issuer add you to the account. This can usually be done by calling their card issuer or visiting a local branch.
Get Your Card
Once you’ve been added to the account, the card issuer will send you your card. You may even be able to customize this card with your name if the card issuer allows it.
The Future of Authorized Users and AI
The future of becoming an authorized user could potentially look bright thanks to new developments in artificial intelligence (AI). Some credit card issuers are already using AI to determine whether someone would make a more suitable authorized user than another. AI could also be used to monitor the spending habits of authorized users in order to mitigate any potential risks associated with the cardholder.
Conclusion
Being an authorized user on someone else’s credit card can be a great way to build credit and avoid having to open a bank account. As long as the primary cardholder is comfortable with you using their card, becoming an authorized user is usually just a matter of asking and having the cardholder add you to their account. With the future of AI, becoming an authorized user may even become easier and more accessible.