Quick Points: Have good credit? Share it with an authorized user
Editor's Note
I began my journey with TPG in 2022 with no credit cards and limited credit history. Now, I have a credit score above 700, two cards and a plan to add more to my collection.
When I joined the team, TPG's director of content, Nick Ewen, added me as an authorized user to his oldest credit card. This was one of the major factors contributing to my progress.
If you want to improve your credit score, here's how to leverage authorized user status to benefit yourself and those close to you.
How authorized users work
An authorized user is someone added to a primary credit card holder's account. Sometimes referred to as additional cardholders, these individuals receive cards with their names on them, but they're linked to the primary cardholder's account. However, they work just like normal credit cards, allowing you to swipe them for online and in-store purchases.
Becoming an authorized user can be a valuable opportunity for individuals to establish their credit history and begin familiarizing themselves with points and miles. Not to mention, this arrangement is mutually beneficial. Authorized users can also assist primary cardholders in meeting minimum spending requirements, enabling them to unlock significant bonuses on cards with higher spending thresholds. It's a win-win situation for both parties involved.
Related: Here are the best credit card welcome offers
Probably the best reason to add authorized users is to take advantage of various card benefits for authorized users.
For example, you can add up to four authorized users for free on the Capital One Venture X Rewards Credit Card, granting each authorized user (plus two guests) access to Capital One lounges and their own Priority Pass membership.
Alternately, The Platinum Card® from American Express charges $195 (see rates and fees) to add each authorized user, but this comes with notable perks, including hotel elite status and extensive airport lounge access.
Of course, this strategy can backfire if your authorized user goes on a spending spree. All charges on the card are ultimately the responsibility of the primary cardholder. However, there are some ways to mitigate these risks.
Why you should add an authorized user to your card
When you add an authorized user, they can benefit from your existing (stellar) credit, but they could do significant harm by spending recklessly.
You might wonder why Nick trusted me enough to add me as an authorized user on one of his cards. New credit cards typically ship to the primary cardholder's address, so when my card arrived at Nick's house, he destroyed it upon arrival. This simple precaution allowed me to benefit from the card's credit history without concern about jeopardizing Nick's credit score with potential charges.
Some issuers (like American Express) even allow you to set spending limits for authorized users right in your online account. This can be great for parents who wish to let their teenage children use the card but not overspend on it. I later took advantage of this strategy, too. I became an authorized user on my parents' credit cards to further increase my credit score thanks to the expanded credit history I inherited.
It can be advantageous for you to become an authorized user on a card affiliated with a primary cardholder who has well-established credit.
Related: How I went from no credit score to financing a house in 2 years
Bottom line
Becoming an authorized user gave me a significant advantage when it came to my credit card journey, and this can often happen through the primary cardholder's online account.
Each issuer may have its own specific procedure for adding authorized users. However, once you navigate through the process, you (and your family, your friends and even your co-workers) can begin reaping the benefits.
For rates and fees on the Amex Platinum Card, click here.
Related: 6 things to do to improve your credit score in 2024
TPG featured card
at Bilt's secure site
Terms & restrictions apply. See rates & fees.
| 1X | Choose to earn up to 1X points on rent and mortgage payments with no transaction fee |
| 2X | Earn 2X points + the option to earn 4% back in Bilt Cash on everyday purchases |
Pros
- Choice to earn up to 1 Bilt Point per dollar spent on rent and mortgage payments
- Elevated everyday earnings with both Bilt Points and the option to earn Bilt Cash
- $400 Bilt Travel Portal hotel credit per year (up to $200 biannually)
- $200 Bilt Cash annually
- Priority Pass membership
- No foreign transaction fees
Cons
- Moderate annual fee
- Designed primarily for members seeking a premium, all-in-one card
- Earn points on housing with no transaction fee
- Choose to earn 4% back in Bilt Cash on everyday spend. Use Bilt Cash to unlock point earnings on rent and mortgage payments with no transaction fee, up to 1X.
- 2X points on everyday spend
- $400 Bilt Travel Hotel credit. Applied twice a year, as $200 statement credits, for qualifying Bilt Travel Portal hotel bookings.
- $200 Bilt Cash (awarded annually). At the end of each calendar year, any Bilt Cash balance over $100 will expire.
- Welcome bonus (subject to approval): 50,000 Bilt Points + Gold Status after spending $4,000 on everyday purchases in the first 90 days + $300 of Bilt Cash.
- Priority Pass ($469/year value). See Guide to Benefits.
- Bilt Point redemptions include airlines, hotels, future rent and mortgage payments, Lyft rides, statement credits, student loan balances, a down payment on a home, and more.