Struggling with bad credit or no credit history? One of the fastest ways to improve your credit score is by using the authorized user strategy.
By being added as an authorized user on someone else’s well-managed credit card, you can boost your credit score without taking on additional debt.
In this guide, we’ll explain how the authorized user strategy works, its benefits, risks, and the best ways to use it to improve your credit.
1. What Is an Authorized User?
An authorized user is a person who is added to another person’s credit card account.
📌 How It Works:
✔️ The primary cardholder adds you as an authorized user.
✔️ You get a credit card with your name on it (but you’re not responsible for payments).
✔️ The card’s payment history and credit age are reported on your credit report.
✔️ Your credit score improves if the card has on-time payments and low utilization.
👉 Pro Tip: You don’t need to use the card for it to impact your credit—just being added to the account helps!
2. How Being an Authorized User Improves Your Credit Score
When you’re added as an authorized user, the primary account’s credit history appears on your credit report. This can positively impact multiple credit score factors:
📌 Credit Score Factors Affected:
✅ Payment History (35%) – You inherit the on-time payment history of the card.
✅ Credit Utilization (30%) – A low balance-to-limit ratio improves your score.
✅ Credit Age (15%) – If the card is several years old, it lengthens your credit history.
🔹 Example:
- You have bad credit (550 score) due to limited history.
- Your parent adds you as an authorized user on a 10-year-old credit card with perfect payment history.
- Within a few months, your credit score increases significantly.
👉 Pro Tip: The older and better-managed the card, the more positive impact it has on your score.
3. Who Should You Ask to Add You as an Authorized User?
Since the primary cardholder’s financial habits affect your score, choose wisely who you ask.
✅ Best People to Ask:
✔️ Parents or family members with a strong credit history.
✔️ A spouse or partner who manages credit responsibly.
✔️ A close friend or mentor who trusts you.
📌 What to Look for in the Primary Cardholder:
🔹 On-time payment history – No late payments.
🔹 Low credit utilization – Under 30% (ideally below 10%).
🔹 Long credit history – A card 3+ years old helps more than a new one.
👉 Pro Tip: Avoid being added to a card with late payments or high balances, as this can hurt your score instead!
4. Risks of the Authorized User Strategy
While the authorized user strategy can be powerful, there are some risks to be aware of.
❌ 1. If the Primary Cardholder Misses Payments, Your Score Drops
If the main cardholder misses a payment or maxes out the card, this negative information appears on your credit report too.
✔️ Solution: Only choose reliable, financially responsible individuals.
❌ 2. The Card Issuer Might Not Report Authorized Users
Not all credit card companies report authorized user accounts to credit bureaus.
✔️ Solution: Before being added, confirm with the issuer that they report authorized user activity to Equifax, Experian, and TransUnion.
❌ 3. You Could Lose the Benefit If You’re Removed
If the primary cardholder removes you from the account, the card’s history may disappear from your credit report, potentially lowering your score.
✔️ Solution: Use this time to build your own credit so you don’t rely on the authorized user strategy forever.
5. Best Practices for Using the Authorized User Strategy
📌 Follow these steps to maximize your credit boost:
✔️ Choose a card with excellent history – Long credit history, low balance, and no late payments.
✔️ Ask the primary cardholder to keep balances low – Utilization under 30% (10% is ideal).
✔️ Confirm reporting to all 3 credit bureaus – Not all issuers report authorized user data.
✔️ Use this opportunity to build independent credit – While benefiting from this strategy, open your own secured credit card or credit-builder loan.
👉 Pro Tip: If the cardholder is concerned about you overspending, they can add you as an authorized user but keep the physical card.
6. How Long Does It Take to See Results?
🔹 Most authorized users see credit score increases within 30–90 days, depending on when the card issuer reports the account.
📌 Estimated Timeline:
📆 First 30 days – New account appears on your report.
📆 60–90 days – Noticeable improvement in credit score.
📆 6–12 months – Established credit history starts making a long-term impact.
👉 Pro Tip: If your score doesn’t improve within 90 days, check if the issuer actually reports authorized users to the credit bureaus.
7. Alternatives to the Authorized User Strategy
If you can’t become an authorized user, here are other ways to build credit quickly:
🔹 Get a Secured Credit Card – Requires a refundable deposit, helps build credit.
🔹 Apply for a Credit-Builder Loan – Reports positive payments to credit bureaus.
🔹 Ask for a Credit Limit Increase – Lowers your credit utilization.
🔹 Use a Co-Signer for a Loan – A co-signer with good credit can help you qualify for credit.
👉 Pro Tip: Combining multiple strategies leads to faster credit improvement!
8. Is the Authorized User Strategy Worth It?
Becoming an authorized user is one of the fastest and easiest ways to boost your credit score, especially if you’re just starting out or rebuilding.
🎯 Quick Recap:
✅ Being added to a good account can increase your score in as little as 30–90 days.
✅ Choose a primary cardholder with excellent credit habits—on-time payments and low balances.
✅ Monitor your credit and use this opportunity to build your own credit.
✅ Combine this strategy with a secured card or credit-builder loan for better results.
📞 Need help improving your credit? Contact Credit Restore Lab for a FREE consultation today!
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