Authorized User Account

Having an authorized user account means you are added to a friend or family member’s credit card account as an authorized user. You will have no legal obligation to the creditor and will receive the credit history of the account on your credit report.

Pros

Adding credit history to your credit report can be very beneficial toward your scores. It is a quick way to receive credit history.

Cons

You are an authorized user, not the account holder. Past and future payments are up to the account holder so you have no ability to regulate timely payments. If there are any negative comments tied to the account then that will show up on your credit report as well. A creditor will not be very willing to remove you as an authorized user if the account is in bad standing.

Authorized User and Credit Repair

If you do decide to get an authorized user account then be very careful of the account holder you are tying yourself to. Make sure they have a good credit history and are responsible with their accounts. Becoming an authorized user can boost your credit scores quickly, but it is not a replacement for building your own credit. Lenders are able to tell which accounts are in your name and which are authorized user accounts on your credit report. An authorized user account is not equivalent to having a personal account in the eye of a lender.