Being a primary cardholder with a good credit history, you can add numerous official cardholders who are called as authorized users. An authorized user or AU is thus a secondary cardholder who enjoys limited rights of the primary cardholder’s credit line.
Only the primary holder of the card is legally responsible for paying dues of the credit card to which an AU is added. An authorized user is not obligated to pay against that card and equally is not permitted to make changes or manipulate the usage of the card.
An Authorized user doesn’t require having any credit history or even income. However, having a low credit score or poor credit history of the AU can be fixed brilliantly and lawfully which has emerged as the easiest way to build credit fast.
Depending on the type of card you hold, you can benchmark a spending limit for all authorized users while adding authorized user to credit card ( improvemycreditfitness.com/blog ).
While most credit card companies report on the AU’s credit reports to the credit bureaus which helps them to build a credit score, there are a few that won’t report. Therefore, instead of making any direct deal with a stranger, always go for reputed tradeline companies to ensure you buy the right tradeline.
For all special facilities like travel, credits may be available exclusively to the primary cardholder whereas an authorized user may or may not have access to such services, depending on a card type.
Whereas the primary account boasts a strong payment history, this can definitely have a constructive impact on an AU’s credit history. In addition to that, if the credit card’s utilization rate is low, that is simply fantastic to enjoy a solid credit score.
On the contrary, if the primary a misses a payment on that specific card or makes a late payment, this will impact severely on your credit score. As quick as possible, being an authorized user you should appeal for disconnecting you from the account.
The level of credit boost that you can expect is determined on the primary card holder’s credit line status in addition to your credit history. Adding to more number of cards is often considered as a way to get the high score, but may not be accepted by the credit bureaus based on various factors as your age and credit card history, be cautious before investing in more.
It takes nearly 60-90 days to get the boost up to a record of your tradeline on your credit statement.