Does adding authorized users affect my credit score?

Adding an authorized user to your credit card account can have a number of benefits. For one, it can make it easier for the primary account holder to meet spending requirements or earn extra points. Authorized users can also benefit from build their credit history and take advantage of perks, such as lounge access Capital One Venture X Rewards Credit Card authorized user

Before adding someone to your card, you may wonder if an authorized user’s credit history will affect your credit history. We share what you need to know about authorized user basics.

Does authorized user affect my credit score?

Most credit cards allow you to add an authorized user to your account, allowing that person to make purchases against your credit limit using their personal card. But if you’re worried that adding a user might negatively impact your credit rating, don’t worry. In fact, adding an authorized user is more likely to impact their credit score than yours.

This is because when you add an authorized user, the account may appear in that person’s account. credit reportso your account history, balance, and credit limit count toward their score. Here’s why Adding users can help someone establish or improve credit. — they can take advantage of your high rating. Of course, any missed payments or other negative marks will also appear on their account, so I don’t recommend adding authorized users unless you have control over your finances.

In contrast, an authorized user won’t appear on your credit report, but their card activity will. Ultimately, you’re responsible for any charges they make, including those they don’t disclose to you. If you incur a balance or miss a payment because an authorized user makes charges you didn’t approve or weren’t aware of, you could be negatively impacted.

Related: How does credit score work?

Benefits of adding authorized users

Adding users to your account can benefit you in a number of ways. For one thing, authorized users’ charges are rewarded, so you can enlist family, friends, and employees to help you earn more points and miles or meet membership requirements. Welcome Offers and spend the bonus.

Some cards, such as Chase Sapphire Preferred® Card And The Platinum Card® from American Expresscan expand some Additional benefits for authorized users.

While some cards limit benefits to the primary account holder, others are generous with their perks. For example, Capital One X Venture Fund allows you to add up to four additional cards at no charge, and each of those cardholders gets access to Capital One and Priority Pass Lounge Can bring up to two guests at no extra cost.

The last line

There is very little reason not to add users to your account as long as you trust the people you add. Set some ground rules about how they can use your card and monitor your account activity regularly. If you do that, you should be fine.

Related: Everything you need to know about authorized users