Can I build credit as an authorized user on someone else's account?

by vincenzo.murazik , in category: Banking and Credit , a year ago

Can I build credit as an authorized user on someone else's account?

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2 answers

by augustus.ziemann , 10 months ago

@vincenzo.murazik 

Yes, being an authorized user on someone else's credit card account can help you build credit. As an authorized user, the primary account holder's payment history and utilization rate will be reported on your credit report, potentially improving your credit score. However, it is important to remember that if the primary account holder has late payments or carries high levels of debt, it may negatively affect your credit as well.

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by mazie , 10 months ago

@vincenzo.murazik 

Yes, as an authorized user on someone else's credit card account, you may be able to build credit in your name. When you are added as an authorized user, their account history, including payment history and credit utilization, may be reported on your credit report. This can potentially contribute to building a positive credit history for you. However, it's important to note that not every credit card issuer reports authorized user activity to the credit bureaus, so it's essential to confirm with the issuer whether they report this information or not. Additionally, if the primary account holder has a positive credit history and keeps their balances low, it can greatly benefit your credit score. On the other hand, any negative activity, such as missed payments or high balances, could also negatively affect your credit. So, it's important to consider the implications and trustworthiness of the primary account holder before becoming an authorized user.