What's the difference between an authorized user and an employee card?
Editor’s note: This post has been updated with new information.
Whether you're a parent looking to help pay for your children's living expenses or a business owner trying to streamline your company's spending patterns, you may want to add an additional user to your credit card account. TPG reader Kevin wants to know what the difference is between an authorized user and an employee card...
[pullquote source="TPG READER KEVIN"]I'm trying to add additional cardholders on my small-business credit card and it says "request employee cards." Is that the same as adding an authorized user?[/pullquote]
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Kevin's right -- while the terminology is different between business and personal credit cards, there isn't a huge difference between adding an authorized user on your personal credit card account or an employee card on your business account. In both cases, you'll ultimately be responsible for any charges made on the card, so make sure you only give it to someone you trust. Also, consider putting a spending limit on the card if your issuer allows you to do so.
Beyond that, the only real differences are what you'd normally find between personal and business credit cards. Most business cards (including employee cards) don't report to your personal credit report, so these cards won't affect your credit score. Meanwhile, adding a friend or family member as an authorized user on your personal credit cards is one of the fastest ways to help them boost their credit score. Additionally, most business cards include expense-management tools that can help you better manage your employees' spending on their cards.
Related: Credit cards with the greatest value for authorized users
Bottom line
At the end of the day, there isn't much of a difference between employee cards and authorized user cards. If you have a personal credit card, you'll add authorized users, and if you have a business card you'll add additional employee cards. Just make sure to do so thoughtfully, as you, the primary account holder, will be on the hook for all charges made.
Thanks for the question, Kevin, and if you’re a TPG reader who’d like us to answer a question of your own, tweet us at @thepointsguy, message us on Facebook or email us at info@thepointsguy.com.
Additional reporting by Stella Shon
Featured photo by Hero Images/Getty Images
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- Earn 3X Miles on Delta purchases and purchases made directly with hotels.
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| 3X | Earn 3X Miles on Delta purchases and purchases made directly with hotels. |
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Why We Chose It
Build your loyalty to Delta by applying for the carrier's mid-tier card option, the Delta SkyMiles Platinum card. The annual fee is quickly recouped by the card's travel perks, such as an application credit to Global Entry or TSA Precheck, annual companion certificate and so much more. Plus you can fast-track to elite status simply through card spend.Pros
- Earn bonus Medallion® Qualification Miles (MQMs) and an Medallion Qualifying Dollar (MQD) waiver when you hit specific spending thresholds with your card within a calendar year
- Receive a Domestic Main Cabin round-trip companion certificate each year
- Statement credit for TSA PreCheck/Global Entry fee (up to $100)
- First checked bag free
Cons
- Doesn't make sense if you don't fly Delta
- SkyMiles aren't the most valuable airline currency
- Earn 90,000 bonus miles after you spend $4,000 in purchases on your new Card in your first 6 months.
- Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. Payment of the government imposed taxes and fees of no more than $80 for roundtrip domestic flights (for itineraries with up to four flight segments) is required. Baggage charges and other restrictions apply. See terms and conditions for details.
- Enjoy your first checked bag free on Delta flights. Plus enjoy Main Cabin 1 Priority Boarding and settle into your seat sooner.
- New: Card Members get 15% off when using miles to book Award Travel on Delta flights through delta.com and the Fly Delta app. Discount not applicable to partner-operated flights or to taxes and fees.
- Earn 3X Miles on Delta purchases and purchases made directly with hotels.
- Earn 2X Miles at restaurants worldwide including takeout and delivery in the U.S., and at U.S. supermarkets.
- Earn 1X Mile on all other eligible purchases.
- Enjoy a per-visit rate of $50 per person for Card Members and up to two guests to enter the Delta Sky Club when traveling on a Delta flight.
- Fee Credit for Global Entry or TSA PreCheck® after you apply through any Authorized Enrollment Provider. If approved for Global Entry, at no additional charge, you will receive access to TSA PreCheck.
- Earn up to 20,000 Medallion® Qualification Miles (MQMs) with Status Boost® per year. After you spend $25,000 in purchases on your Card in a calendar year, you can earn 10,000 MQMs up to two times per year, getting you closer to Medallion® Status. MQMs are used to determine Medallion® Status and are different than miles you earn toward flights.
- No Foreign Transaction Fees.
- $250 Annual Fee.
- Terms Apply.
- See Rates & Fees