How To Add An Authorized Your Credit Card User?

Let’s start with your question – how to fix my credit score fast. Hardly any lender or a credit card issuer shows trust in you when you have a bad credit score. Low FICO score makes getting credit cards and loans a tall order. However, you need money to get your finances back on track. There is only one way to achieve this. You have to increase your credit score. 

There are 6 ways you can improve your credit score.

  • Timely payments. 
  • Efficient use of credit limit. 
  • Credit-builder or secured loan.
  • Getting a co-signer 
  • Becoming an authorized user 
  • Secured Credit Card

In this article, we will see how can you become an authorized user and build your credit score fast. Most credit card issuers allow a credit card holder to add a person to his credit card account. The card holder can add a child or an employee. The person being authorized don’t even need to apply for a credit card.

When you become an authorized user, you receive a credit card with the holder’s name on it. You and the credit card holder, both can use their respective cards. All purchases are made using the same account. These purchases appear on one card statement. Both of you share the credit limit. Purchases reduce the available balance for both. 

Becoming an authorized credit card holder is different from becoming a joint account holder. You don’t have to go through a credit check. However, your credit card issuer may charge a fee to add you as an authorized user. 

Becoming An Authorized User

Ask the credit card holder to contact the credit card issuer and ask them to add you as an authorized user. You have to provide the issuer with personal information including name, date of birth, address, and SSN.

The credit card issuer limits the number of authorized users that can be added to an account. It is not easy to keep track of the charges when there are many users using the same account to make purchases. 

Pros And Cons

You receive a credit card and can use the account of the credit card holder. However, you are not responsible for the purchases you have made on that account. You will not be included if there is a lawsuit regarding debts. However, you cannot change the address on the account, add other authorized user, negotiate a lower interest rate, request a credit limit increase or perform other account maintenance activities. 

Impact On Credit 

The purchases and payments you are making are reflected on your credit score. This is good for you if you are using your credit card responsibly. However, it is not good for the primary credit card holder if you are making late payments and building a negative credit history. 

Some credit card issuers have the policy of not reporting the authorized user’s accounts to the bureaus. So, your account may not be shown on the credit report of the primary account holder. The primary credit card holder can call the credit card issuer and tell them whether he wants your credit account to be shown in his credit report.

This is one of the best ways to fix your credit. This method of improving credit score works only when you are using your credit card wisely. However, when it comes to the question ‘how to fix my credit score fast’, you have to use other methods as well. 

There are companies offering credit repair services. You can get in touch with one of these companies. However, don’t hire a company without going through the Credit Repair Organizations Act. This will help you in avoiding fraud.

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