As an authorized user, you’re not legally responsible to pay the credit card bill or any debts that build up. This is still the primary account holder’s responsibility.

Do business credit cards report authorized users?

Not all credit card companies report authorized users to the credit bureau. The major credit card issuers (American Express, Bank of America, Chase, Citibank, Capital One and Discover) do report. However, many smaller banks and credit unions do not. Make sure you ask your credit card company to see who is eligible.

Is a card holder the same as an authorized user?

Authorized users are similar to joint cardholders in that they are able to make purchases on the shared card. The major difference is that they do not have any legal accountability when it comes to paying the bill. “The principal cardholder is the only one legally on the hook for debt on the account,” says Lowry.

How do I know if I am an authorized user?

The most straightforward way to find out if you’re an authorized user on a credit card is to call the issuer of the credit card in question and ask them directly. You can find the number on the back of your credit card.

What does it mean to be an authorized user of a credit card?

“Typically, the entire account history will show up on the authorized user’s credit report,” says Gerri Detweiler, education director for Nav, which matches small businesses with loans and credit cards. “If the primary cardholder has a good payment history and low debt, that can be a tremendous benefit.”

How can I remove an authorized user from my account?

As primary cardholder, you can remove the authorized user from your account anytime. Typically, you’ll call your credit card issuer’s customer service department and make the request. If the authorized user has your credit card number, you should ask for a new card. Once the authorized user is removed, he or she no longer can spend on your account.

Who is responsible for the debt of an authorized user?

By law, authorized users are not responsible for their debts. The primary cardholder must pay if the authorized user fails to do so. Make sure you know the pros and cons when you add an authorized user to your credit card.

Do you have to report authorized user activity to credit bureaus?

But you will need to confirm that the card issuer reports authorized user activity to credit bureaus. If the issuer does not, then card activity will have no effect on your credit. The account holder and the authorized user must use the card wisely.