As with any new credit, it typically takes a month or two after you've been named an authorized user for the account to appear on your credit reports. As soon as that happens, the card's shared payment history and its age of accounts will be added to your own and will be reflected in your credit scores.
Adding yourself as an authorized user on someone else's credit card could help to build and establish your credit. However, there are some important factors to consider since becoming an authorized user can actually hurt your credit score if you're added on an account that is not in good standing.
Adding your partner as an authorized user don't rebuild her credit but will affect your credit if payment aren't done on time. Your best bet is maybe have her use a secured credit card which would act as a debit card and help her build her credit.
If you have excellent credit, high income and low credit utilization among other variables, issuers may offer you a credit line of $30,000 to $50,000.
If you have built up a solid credit history, a steady income and a good credit score, your credit limit may increase to $5,000 or $10,000 or more — plenty of credit to ensure you can purchase big ticket items.
Your credit history and credit scores can be hurt if the primary account holder doesn't stay on top of their payments. If you're an authorized user, late payments can affect your credit along with the account holder's.
Limited access: Authorized users can be removed at any time, and they cannot use all of the benefits of the card. For instance, they cannot earn their own credit card rewards points and typically are not authorized to redeem them. Fees: Some credit cards may charge a fee for adding an authorized user.
Once the authorized user account is part of your credit history, it can benefit your credit score as long as both you and the primary account holder use the account responsibly.
There are some differences around how the various data elements on a credit report factor into the score calculations. Although credit scoring models vary, generally, credit scores from 660 to 724 are considered good; 725 to 759 are considered very good; and 760 and up are considered excellent.
Your score may drop a bit when you are removed as an authorized user, but you can improve it over time by using your own credit accounts responsibly.
Most issuers allow you to add an authorized user to an account. Joint credit cards require both cardholders to do a credit check. You can add an authorized user to an account without a credit check.
An authorized user can piggyback off the good credit history of the primary cardholder. If the primary cardholder has a long history of making their payments on time and in full, the authorized user should see that positive history reflected on their own credit report.
However, it's not as easy to separate yourself from a joint credit card account, whether you are the primary user or a co-signer. If you want to be removed from the account, you'll have to call the credit card provider and be prepared to negotiate.
FICO says paying down your overall debt is one of the most effective ways to boost your score. Don't close paid-off accounts. Closing unused credit card accounts reduces your available credit and can lower your credit score. Keeping them open and unused shows you can manage credit wisely.
The average FICO credit score in the US is 717, according to the latest FICO data. The average VantageScore is 701 as of January 2024.
Your credit score can drop for a number of reasons, including a recent late or missed payment, an application for new credit or a change to your credit limit or usage. To understand why your credit may have gone down, it's important to understand what affects your credit scores.
With responsible card use and on time payments, your positive credit score may be able to help your Authorized User to build their credit. For more tips, our CreditWise app can help them access and understand their credit score—whether they're a cardholder or not.
Being an authorized user can help you build credit—increasing your credit age, overall credit limit and history of on-time payments—but creditors will also want to see that you're up to the task of repaying the money you borrow.
It boils down to your financial habits and income. A good rule of thumb is to aim for a credit limit that's about 20-30% of your annual income. For example, if you make $50,000 a year, a good credit limit might be around $10,000 to $15,000.
For a score with a range of 300 to 850, a credit score of 670 to 739 is considered good. Credit scores of 740 and above are very good while 800 and higher are excellent.
How does Capital One's credit line increase program work? For certain cards, Capital One indicates that it will automatically review your account for credit line increases after as few as six months.