Should You Add an Authorized User to Your Credit Card? Mar 20th

Most credit card companies allow their cardholders to add an authorized user to their account – but why would you want to? There are various benefits; for example, you can kickstart your child’s credit history or provide a helping hand to a friend in a financial crisis. While these benefits appear fantastic, hold the phone before you call up your credit card company! Before you add an authorized user to your account, there are some risks to consider too.
What Is an Authorized User?
An authorized user is an individual who uses someone else’s credit card in their name. Authorized users can use the credit card as if it was their own, but they aren’t the primary account holder. Authorized users don’t have the authority to increase credit limits, add more authorized users, or perform any other administrative activities.
What Are the Benefits?
Adding an authorized user has benefits for both the primary account holder and the secondary cardholder. Sometimes both parties can benefit from shared card perks, which can be particularly great on fee cards…