How long does it take for an authorized user to show up on a credit report? If this information is reported, it will typically show up on your credit score in around thirty days. However, some lenders do not report authorized users to credit bureaus, in which case the authorized user may not appear at all.
According to a 2018 study done by Credit Sesame, people who had a fair credit score saw their credit score improve nearly 11% just three months after becoming an authorized user on someone's credit card.
If they do report authorized user accounts, you will typically see the account appear on your credit report within a couple of months after you are added to the account. If they do not report authorized user accounts and you are trying to build credit, you may consider opening a secured credit card instead.
Authorized users usually won't run into this problem, as there's generally no credit check involved. The authorized user strategy is common for parents who want to help their children build credit. If your parent has established a positive credit history, you may want to ask them to add you as an authorized user.
A credit check is not required to become an authorized user on someone else's card. Yet banks and card issuers will often report the full payment history of the card, including the names of each individual card user, to the three main credit bureaus: Equifax(R), Experian(R) and TransUnion(R).
When you add a friend or family member as an Authorized User to your Discover® card, you help them build a credit history, with responsible use.
When you add an authorized user to your credit card account, information from the account — like the credit limit, payment history and card balance — can show up on that person's credit reports. That means their credit can improve as a result of being added to a credit account you keep in good standing.
Yes, Capital One notifies the credit bureau when authorized users are added to any credit card account. This can be an easy way to help build someone's credit history. However, you should think twice if you plan on applying for multiple credit cards in the near future or the primary cardholder has fair credit.
There are several ways to build credit without an SSN. You can obtain an ITIN if you qualify, apply for a secured credit card with an issuer that doesn't require an SSN, have rent payments reported to a credit bureau, open a bank account, or become an authorized user on a friend or family member's credit card.
The Impact of Being Removed
If you're the primary account holder, removing an authorized user won't affect your credit score. The account will continue to be reported on your credit report as normal.
Even if a lender does report your account to Experian, there's no guarantee they'll also report your authorized user's information. But you can typically find out by contacting the card issuer before you add the authorized user to your account.
In order for an authorized user account to potentially help your credit, three things need to happen. The card issuer needs to report the account to the three major credit bureaus. Many credit card issuers do report account activity for authorized users to Equifax, TransUnion and Experian.
Editorial and user-generated content is not provided, reviewed or endorsed by any company. American Express reports to credit bureaus once per month, typically updating Experian, Equifax, and TransUnion within 5 days of a card's billing cycle ending.
Most credit card companies report an authorized user's credit activity to the three major credit bureaus in the U.S. (Transunion, Experian and Equifax). Positive account activity like on-time payments and low credit utilization will benefit an authorized user's credit as long as it's reported.
Make your spouse an authorized user on your credit card
By someone as an authorized user on your credit card account adds your credit history to their credit report. The effect is most powerful when you add someone to an account with a great record of on-time payments.
Adding your spouse as an authorized user to your credit card won't hurt your credit score, but it could help your spouse's.
Yes, adding children as authorized users can help their credit scores. It's up to the primary cardholder to maintain a healthy credit score so the authorized users can reap the benefits.
Editorial and user-generated content is not provided, reviewed or endorsed by any company. American Express authorized users can be denied if they are younger than 13 years old or if they have a bad history with Amex, such as past defaults or lawsuits with the company.
Although add-on cards do not help in improving or building the secondary user's credit score, they can be good for getting additional spending power and understanding credit.
An authorized user is a person added to a credit card account by the primary cardholder. Anyone can be an authorized user, as long as they meet the card issuer's age requirements; for instance, the primary cardholder may choose to add their child, spouse, partner or close friend as an authorized user.
Yes, American Express does report authorized users to credit bureaus. More specifically, American Express authorized users who are at least 18 years old are reported to the three major credit bureaus each month, starting as soon as they are added to an Amex account.
All major issuers NerdWallet surveyed reported authorized user activity to the three major credit bureaus — Equifax, Experian and TransUnion — in some form.
It's generally best to stay as an authorized user on your parents' credit card accounts until you've built up your own credit and are financially prepared to handle your own credit card payments. If you think you're ready to make the move to a credit card of your own, read on.
If you've added an authorized user to your credit card account, they'll typically get a credit card linked to your account and can use it to make charges, but they're not responsible for paying the balance. Any charges the authorized user makes can increase your credit utilization, which can lower your credit scores.