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Guide to Adding an Authorized User to Your Credit Card

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication. This site may be compensated through a credit card partnership.

Disclaimer: Though we have done our best to research information regarding this topic, be aware that issuing banks may have unique rules and agreement terms that apply to their particular credit card accounts. Contact issuing banks directly for questions on terms and policies relevant to specific credit card accounts.

What is an Authorized User?

An authorized user on a credit card account is any person you allow to access your credit card account. Not to be confused with a joint account holder, an authorized user can only make purchases and, in some cases, have access to certain card benefits and perks. Joint account holdership is becoming extremely rare, but typically occurs when two people apply for a credit card together. In joint account ownership, both people are liable for charges and can access and make changes to a credit card account.

An authorized user can be a spouse, relative, or employee. When you designate an authorized user on your credit card account, this person usually gets a card bearing their name with the same credit card number as the primary cardholder. In this scenario, the primary cardholder is liable for all transactions made by themselves as well as by any authorized user tied to their account.

Why Would You Add an Authorized User to Your Credit Card Account?

There are many reasons you might think about designating an authorized user for your credit card account. It all comes down to convenience and extending benefits that a credit account offers: access to credit, related perks, and credit card rewards, as well as the potential to improve the credit score of the authorized user.

For example, couples that share expenses might find it easier to designate one or the other as an authorized user to avoid passing a single card back and forth to make purchases. Perhaps you have a relative who lives far away, and it would be easier to give them access to your credit account for emergency purchases. You may also have a child that you want to assist in building credit history to increase their credit score. Adding them as an authorized user could help with this, but we’ll cover that more in another section.

Additionally, if you are an employer whose employees need to make purchases on behalf of the company, it would make sense to make them an authorized user. Without this designation, it could be extremely inconvenient for them to not have a company credit card at their disposal.

In some cases, adding an authorized user can also accrue reward points connected to a credit card account. These reward points can be used to make purchases or receive discounted pricing on things like travel and retail products. Typically, points are accrued from reaching credit card spending amounts within a certain time frame. Sometimes, the act of adding an authorized user can garner additional rewards as well.

How Can I Add an Authorized User to My Credit Card Account?

Credit Card Issuer

Age Requirement

American Express

13 or 15 years old, depending on the card

Barclays

13 years old

Bank of America

No minimum age requirement

Capital One

No minimum age requirement

Chase

No minimum age requirement

Citi

No minimum age requirement

Discover

15 years old

U.S. Bank

16 years old

Wells Fargo

No minimum age requirement

As the primary cardholder you are the only person who can designate an authorized user. The authorized user cannot contact the credit card issuer and add themselves to your account. You will have to contact the issuing bank and request to add one or more authorized users to your account.

Depending on the bank and the technology in place, you may be able to handle this process entirely online. Some banks allow you to log in to your banking portal to designate additional authorized users, create their own bank login and profile as well as determine the level of access you’d like them to have to your account. Levels of access can range from being able to view transactions only to making purchases. If your bank doesn’t have this technology in place, usually a phone call is sufficient.

Adding Authorized Users Online

How to Add an Authorized User to a Chase Credit Card Account:

  1. Log into your Chase credit card account
  2. Under “My Accounts” click “Add Authorized User”
  3. Complete the information requested (see screenshot below for reference)How to Add an Authorized User to a Chase Credit Card Account

How to Add an Authorized User to a Bank of America Account:

  1. Log onto your Bank of America account.
  2. Select the credit card you’d like to change.
  3. Click on the tab labeled ‘Information & Services’
  4. Scroll down to the section labeled “Services”
  5. Click on “Add an authorized user”

How to Add an Authorized User to a Chase Credit Card Account

screen shot 2

How to Add an Authorized User to a Capital One account:

  1. Log onto your Capital One credit card account online.
  2. Under the “Services” tab, click “Manage Authorized Users”
  3. Click “Add New User”

screen shot 6
screen shot 7

How to Add an Authorized User to a American Express credit card account:

  1. Log onto your Amex account online.
  2. Click on “Account services”
  3. From the lefthand menu, select “Card Management”
  4. Under “Account Managers”, click “Add and Manage Users with Account Manager”screen shot 10
    screen shot 11

How to Add an Authorized User to a Citi credit card account:

1. Log onto your Citi credit card account online.
2. Select the “Account Management” tab.
3. Click “Services” from the lefthand menu.
4. Click “Authorized Users”
5. Click “Add an authorized user”
6. Fill in the authorized user’s personal information.

 

screen shot 14

 

 

screen shot 12

How to Add an Authorized User to a Barclays credit card account:

  1. Log onto your Barclays credit card account.
  2. Select the “services” tab.
  3. Under the dropdown menu, select “Authorized users”
  4. Select “Add an authorized user”
  5. Complete the form to add an authorized user.
    screen shot 17screen shot 18screen shot 20

Who Can Be an Authorized User on My Account?

An authorized user can be anyone you choose, whether they are related to you in some way or not. In most cases, the bank will request identifying information such as name, birthdate, Social Security number, and address. Some card issuers require that authorized users meet age requirements, and others do not have age requirements. As always, check with the bank to understand the criteria authorized users must meet for your card.

The Fees

Some credit cards will charge an additional fee for more additional authorized users, while others will offer this benefit at no charge. Make sure you read the fine print in your cardholder agreement so that you are aware of all the fees associated with having one or more authorized users on your account.

Fees can range from less than $100 to a few hundred dollars and beyond each year. Business accounts especially can carry higher fees when multiple authorized users are associated to one account.

Liability

As the primary account holder, you must understand that you are 100% solely liable for any and all charges made on your account by both yourself and your authorized user. If you have been designated as an authorized user, you do not legally share liability for purchases made on the credit card account. However, you may have a personal arrangement with the primary account holder to pay your share of charges when the bill is due.

What Can an Authorized User Do?

This can depend on the level of access you’ve chosen with your card issuer for your authorized user. If there are not varying levels of access to choose from, check with the card issuer to find out exactly what an authorized user can and cannot do.

In most cases, an authorized user cannot make changes to an account. They cannot close an account, request changes in bill due dates, change account information, or request limit increases or a lower annual percentage rate.

Again, this varies from card issuer to card issuer, but there are many other things an authorized user can do.

Here are some possible capabilities based on the terms of your credit card issuer:

  • Make purchases
  • Report any lost or stolen cards
  • Obtain account information
  • Initiate billing disputes
  • Request statement copies
  • Make payments and inquire about fees

Benefits of Adding an Authorized User

As mentioned before, adding an authorized user to a card can be for convenience, accruing rewards, or sharing card perks and benefits. An authorized user can be incredibly convenient in the case that you don’t have your personal card or for some reason don’t have immediate access to it.

Having an authorized user can help a primary user reach limits to earn reward points for some cards. One of the most effective marketing strategies of credit card companies is to offer bonuses and rewards for adding authorized users to your account. Adding another user to your account could add a few thousand extra reward points you would not have earned without adding the user. Then, there’s always the chance that the authorized user will make purchases that contribute even more to your attempt to accrue reward points.

Finally, there are a number of credit cards that offer perks or benefits that can extend to your authorized users. Depending on your credit card, benefits like car rental insurance, lost luggage reimbursement, and extended warranties could apply to all purchases made, including those by your authorized users, on your credit card account.

Benefits of Becoming an Authorized User

Though the credit-reporting landscape is changing, there’s still the potential to “piggyback” on a primary account holder’s credit history for a card in good standing. But not all credit card companies report information to credit bureaus for authorized users in all circumstances. However, to know for sure what will be reported to the credit bureaus in regard to your authorized user status, speak with your card issuer for the details of what information is reported and when to credit bureaus.

Another benefit is having access to more credit. If you are in a bind and have emergencies that come up, access to credit can be helpful. Plus, exercising diligence in managing purchases and bill payment can help you develop good credit habits.

You should also know that being an authorized user may grant you access to certain perks for account holders and their primary users. There are benefits like access to travel lounges, Global Entry or TSA PreCheck application, travel credits, and discounts an authorized user could be privy to as well.

What Could Go Wrong?

If for some reason the credit card account doesn’t remain in good standing, the credit score of both the primary account holder and the authorized user could be affected. If you are a primary account holder, make sure your authorized user understands the terms under which they can make purchases. If they make purchases that cause your payments to be delinquent, your credit score could suffer.

Even if you did not give this person permission to make purchases with your credit card account, the fact that you designated them as an authorized user is evidence that you at some point trusted them with your credit card access. A claim of criminal or fraudulent activity in this instance would be extremely difficult to prove, so choose your authorized users wisely.

Though not as common with an authorized user, your credit score could be negatively affected if an account becomes delinquent. Because tradeline reporting for authorized user accounts to credit bureaus varies from card to card and scenario to scenario, a delinquent account status could still appear on your credit report. If you will be added to someone’s account as an authorized user, find out whether or not the credit history of the account will be reported to credit bureaus under your authorized user status.

Removing an Authorized User from an Account

Either the primary cardholder or the authorized user can remove an authorized user from an account by contacting the credit card issuer. You may be asked to verify your information as well as the information of the primary account holder.

In many cases, only one card number is issued between one or more users. Your credit card company may deactivate the primary cardholder’s credit card number and reissue a new card and number once an authorized user is removed from an account.

If your status as an authorized user does show up on your credit report for the credit account after you’ve been removed from a credit card account, you may have to contact credit bureaus to have it removed.

The Best Way to Manage Shared Credit Access

Designating someone as an authorized user is not something to be taken lightly. Even a small misunderstanding of credit card issuer terms and your own interpersonal credit arrangement can cause problems. Before adding an authorized user to your account, set ground rules around card use that covers access to perks and making purchases.

Some things to consider and discuss with your authorized user include:

  • What is the goal in having the authorized user on the account?
  • Will the authorized user have a physical card?
  • When is it OK to use or not use the credit card to make purchases or access card perks?
  • The credit history of both the primary cardholder and the authorized user
  • Good credit habits that will prevent identity theft and fraud
  • Setting up monitoring alerts with the credit card company or an identity theft protection service

The ability to add an authorized user to a credit card account can be a double-edged sword. On one hand, convenient benefits of access to credit and credit card perks can make life easier in so many ways.

On the other hand, this same convenience can cause problems if both the primary cardholder and the authorized user don’t understand the rules of engagement with each other or the terms set forth by the credit card company.

Adding an authorized user to your account has the potential to be incredibly convenient and mutually beneficial if handled the right way. Make sure you follow best practices to get the most out of this financial arrangement.

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Annual fee
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3% cash back in your choice category, 2% cash back at grocery stores and wholesale clubs for the first $2,500 in combined choice category/grocery store/wholesale club quarterly purchases & 1% cash back on every purchase
Balance Transfer Fee
Either $10 or 3% of the amount of each transaction, whichever is greater.
Credit required
good-credit
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Aja McClanahan |

Aja McClanahan is a writer at MagnifyMoney. You can email Aja here

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Convert a Secured Card to an Unsecured Credit Card

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication. This site may be compensated through a credit card partnership.

Young couple calculating their domestic bills

A secured credit card is a great way to build your credit history. When no one else will give you a credit card, a secured card offers you the opportunity to improve your credit score in a controlled way. However, at some point the goal is to convert from a secured card to an unsecured card. We will help you decide when is the best time to make that conversion, and how to do it.

When to Make the Switch

The only reason to have a secured credit card is to get a better credit score. Once your score is good enough to get another credit card, you should consider making the switch. Some secured cards, like Capital One, actually show your credit score on your statement every month, which can help you plan.

Once your credit score is 650 or higher, you will have a number of options for a credit card. Once your score is 700, you can pretty much take your pick of any credit card out there.

So, we recommend keeping the secured card for at least a year. After 12 months of positive activity (never spending more than 20% of the available limit and paying on time), you should start looking closely at your score. If it is above 650, you have a very good chance. If your score is above 700, you should definitely switch.

How to Make the Switch

You have 2 options when switching from secured to unsecured:

  1. Your secured card is migrated to a new credit card, or
  2. You apply for a new credit card and close your secured credit card

For the first option, just call your bank directly and ask for a conversion. I helped my wife establish credit with a secured credit card, and I had to pro-actively speak with the bank in order to get the conversion completed. Just make sure you remember to do the following:

  • Ask to be converted to a credit card that does not have an annual fee
  • Ensure that you receive a refund of your original deposit. At Bank of America, I had to chase them a few times before we received our deposit refund
  • Ask to keep the same account number, so that your credit history continues to build

Banks like secured cards, because you are keeping money with them, and they earn interest on that money. They are not always eager to make the conversion for you. If that is the case, then you need to apply for a new card.

If your credit score is less than perfect, you should consider a credit card issued by a department store. For example, Synchrony Bank issues a Walmart Credit Card that has no annual fee and typically approve less than perfect credit scores. You can learn more about that card here.

Store card options:

Walmart Credit Card®

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Walmart Credit Card®

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$0
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Save 3% on Walmart.com purchases including Grocery Pickup, 2% on Murphy USA & Walmart gas, and 1% at Walmart & anywhere your card is accepted.
Regular Purchase APR
24.65% Variable

Target REDcard™ Credit Card

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Target REDcard™ Credit Card

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Regular Purchase APR
24.65% Variable

If your have a good or excellent credit score, find the best cashback credit card for your needs.

Cashback card options:

Blue Cash Preferred® Card from American Express

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Regular Purchase APR
15.24%-26.24% Variable
Intro Purchase APR
0% for 12 months
Intro BT APR
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Annual fee
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Rewards Rate
6% cash back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%). 3% cash back at U.S. gas stations, 1% cash back on other purchases.
Balance Transfer Fee
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Do not close your secured card until you are approved for a new credit card. Once you are approved for your new credit card, call the bank that issued your secured card. Tell them that you are going to close the account unless they convert you to a secured card. It is always worthwhile trying to get the conversion, and here you will be making a threat that you will keep. Because, if they don’t convert your card, you will close it. That means you will likely end up in retention unit.

If you do close the card, make sure you receive a refund of the deposit. Closed accounts stay on your credit report for 7 years, so you should not worry about your credit score. The other credit card you opened will help to build your score, so long as you continue to use it responsibly.

If the retention office agrees to convert your card, follow the same advice we gave above: get your deposit refunded, switch to a fee-free credit card, and make sure you keep the same account number.

The purpose of a secured credit card is to establish your credit score. Once you have a good score, you shouldn’t continue to pay fees or keep you money tied up in a deposit with the credit card company.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Nick Clements
Nick Clements |

Nick Clements is a writer at MagnifyMoney. You can email Nick at nick@magnifymoney.com

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How to Dispute Credit Report Errors

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Your credit reports are maintained by each of the three national credit bureaus: Experian, Equifax and TransUnion. These important documents list how much money you owe on your credit cards and the balances on any auto, student or mortgage loans you might carry. They also list any financial mistakes you’ve made in the recent past, everything from missed and late credit card payments to bankruptcy declarations and foreclosures.

This information makes up your three-digit credit score, the number lenders use to determine if they’ll lend you money or extend you credit. A high score means you’re more likely to qualify for the best credit cards and loans at lower interest rates.

That’s why it’s so important to make sure that the information on your credit reports is accurate. A single mistake on these reports could send your credit score tumbling — and errors aren’t as uncommon as you might think. In fact, a report by the Federal Trade Commission in 2012 found that 26% of participants in a study found at least one potential error on their credit reports. That same study found that 5.2% of the participants who corrected these mistakes saw their credit scores increase enough so that they would be more likely to nab a lower interest rate on a loan.

Fortunately, it is easier today to dispute and correct a mistake on your credit reports. And doing so could help you improve your credit score.

How to dispute errors in your credit report

It’s easier to dispute items on your credit report today, because you can open an inquiry with each credit bureau online.

When you find an error on your credit report, you’ll work directly with the bureau that issued the report. You might have a mistake on your TransUnion credit report while your reports from Experian and Equifax are error-free. In this case, you’d start an online dispute with TransUnion.

Log onto the bureau’s dispute resolution center — using the information listed earlier in this story — and click on the appropriate button to start a new dispute. Doing this will bring up your credit report with an option to dispute each piece of information on the report. Once you locate the incorrect information, whether it is a credit account still listed as open even though you’ve closed it or a late payment that you believe is inaccurate, click on the “dispute” option for that item.

You will then have the option to select a reason for your dispute. If you’ve never paid your auto loan late, but Experian reports that you have, you’d be able to explain using a dropdown box that you never paid that bill late.

Once you’ve selected all the items you want to dispute, you’ll be given the option to upload documents that help prove there is a mistake in your report. Take advantage of this: the more information you can provide, the better your chances of winning your dispute. If Equifax lists a late credit card payment from April 2017, attach the credit card statement from that month showing that you paid your bill on time. If TransUnion lists an auto loan as being open even though you’ve paid it off, upload your title paperwork showing that you own the car free and clear.

After you submit your online dispute, the credit bureau will send you alerts by email confirming that an investigation has been launched. The bureau will also send you emails every time there is new information about your dispute and when the investigation has been concluded.

You can also write a letter to the credit bureau if you’d prefer that method to opening a dispute online. Again, you can contact the bureaus using the information listed earlier in this story.

According to the Federal Trade Commission, your letter should include your complete name and address and should clearly identify each item in your report that is incorrect. Include the reasons why an item is incorrect and request that the offending item be removed or corrected.

The commission recommends sending a copy of your credit report with the incorrect items circled or highlighted. You should send this letter by certified mail, with a return receipt requested. This way, you can be certain that the credit bureau will have received your letter.

The Federal Trade Commission also recommends that you contact the institution that provided the credit bureau with the incorrect information. If the bureau reports a missed payment from your mortgage lender and you are disputing this, contact your mortgage lender, too, to inquire about the mistake.

Sample dispute letters for credit bureaus and creditors

Want to send a dispute letter to one of the three credit bureaus? Here is a sample dispute letter provided by the Federal Trade Commission. Just fill in the blanks when you send it.

The Federal Trade Commission recommends that you also send a dispute letter to the company — bank, lender or credit card provider, usually — that send the information you think is incorrect.

Here is a sample letter, provided by the FTC, for that step in the process:

What happens after you submit a dispute

The credit bureaus are required to investigate your dispute and will usually do so within 30 days, according to the Federal Trade Commission. Once you submit your dispute, either online or by writing, the bureau will forward your information to whatever organization provided it with the information in dispute. If you are disputing a late payment by one of your credit card providers, the credit bureau will send your information to that provider.

If the company does find that the information you are disputing is incorrect, it must then notify all three credit bureaus so that they can correct the information in your reports.

Once the investigation concludes, the credit bureau must provide you the results in writing, along with a free copy of your credit report if the dispute ended with a change. The bureau will also send you a written notice that contains the name, address and phone number of the company that provided the incorrect information.

Where to dispute credit report errors

You can report credit report errors online — however, we recommend doing it both in writing and online. If you do not like the outcome of the dispute, a paper trail will be helpful if you want to continue pressing for a change in your credit report. Plus, a written letter, sent by certified mail, can be more effective.

TransUnion

You can dispute with TransUnion at dispute.transunion.com, or contact the bureau by phone at 1-800-916-8800. You can also dispute information on your TransUnion report in writing at TransUnion, LLC, Consumer Dispute Center, P.O. Box 2000, Chester, PA 19022.

Equifax

You can dispute online with Equifax online at equifax.com/personal/disputes/. If you’d prefer to dispute in writing, you can send a letter to Equifax Information Services LLC, P.O. Box 740256, Atlanta, GA 30374-0256. You can also call Equifax at 1-866-349-5191.

Experian

You can dispute online with Experian at www.experian.com/disputes/. You can dispute in writing at P.O. Box 4500, Allen, TX 75013.

How to check your credit report for errors

The first step to checking your credit reports is to order your free copies. You can order one free credit report from each of the three credit bureaus every year from AnnualCreditReport.com. Be sure to only order your reports from this site. Other sites offering free credit reports might try to sign you up for credit-monitoring services that you might not need.

But once you get your reports, how do you check them for errors? The key is to figure how credit reports are organized and what information they contain.

Your credit reports start with a list of personal information, including items such as:

  • Your full name
  • Current and recent addresses
  • Telephone number
  • Social Security number
  • Date of birth
  • Spouse’s name
  • Current and recent employers

Reports also contain a section for three types of public records: bankruptcies, tax liens and civil judgments. (Credit reports won’t list arrests, misdemeanors or other non-financial records.)

Maybe you failed to pay a tax bill. Your credit report would list the amount of the unpaid taxes and the filing date of a tax lien against you. If you’ve recently declared bankruptcy, your report will list the type of bankruptcy you’ve filed, the filing date of your bankruptcy and the court in which you filed.

You don’t want public records listed on your reports; these will cause your credit score to tumble. Fortunately, these records don’t stay on your reports forever: foreclosures and Chapter 13 bankruptcies fall off your credit report seven years after their filing dates, while Chapter 7 bankruptcies disappear from your report after 10 years.

Another important part of your credit reports is the accounts section. This section lists your credit card accounts and balances, and the balances of installment loans like auto and mortgage loans. Your report will list these accounts as either open, negative or closed.

For instance, your credit reports will list a mortgage loan that you are still paying off as open, including the loan’s current balance, the date you took out the loan and the lender behind the loan. Reports will also list whether you have any late or missed payments on this loan and will list whether the loan is open — meaning you are still paying it off; closed — you’ve finishing paying off the mortgage; or in foreclosure.

This section will list open credit card accounts, too, listing your current balance, the highest your balance has ever been and whether you are late on your payments.

If you are interested in a sample credit report, credit bureau Experian has a good example here.

Common errors in credit reports

Certain errors are more likely to pop up in credit reports. The Consumer Financial Protection Bureau warns consumers to look for:

  • Errors made in your personal information, including reports that list your name incorrectly or contain an incorrect address or phone number.
  • Closed credit card accounts that are still listed as open.
  • Credit card or installment loan payments reported as late, even if you paid them on time.
  • Debt that is listed on your report more than once, possibly with different names for each listing.
  • Reports might say you owe more on your credit cards than you actually do.
  • Reports might list credit limits on your accounts that are too low.

If you spot any of these errors, make sure to correct them. All of them could impact your credit score.

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Dan Rafter
Dan Rafter |

Dan Rafter is a writer at MagnifyMoney. You can email Dan here

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