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What Is An Authorised User on a Credit Card?

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Created on
May 5, 2023


What’s Inside

A credit card-authorised user is someone who has been permitted by the main credit card holder to use their credit card. The authorised user can buy things using the card, but they are not legally responsible for paying off the balance. It's a way to allow someone you trust, like a family member or friend, to use your card while building their credit history. However, the primary cardholder is responsible for all charges made to the account. So, it's important to establish clear guidelines to avoid misunderstandings.

Adding an authorised user to your credit card can have numerous benefits for the person being added. Usually, primary cardholders tend to add their partners or children to their credit cards.

How do you add someone as an authorised user?

Here are the main points to add an authorised user to a credit card account:

  • Contact the credit card issuer either online or by phone.
  • Provide the authorised user's full name, date of birth and identification details.
  • Agree to the accountability for charges made by the authorised user.
  • Review any limitations or restrictions on the authorised user's card.
  • A unique credit card in the authorised user's name will be issued.
  • The authorised user will receive the card in the mail and must activate it before use.
  • To remove an authorised user, contact the issuer by phone and explain the situation.

Should you add an authorised user to your credit card?

Adding an authorised user to your credit card is a personal decision that is influenced by several variables-

Building credit:

Adding an authorised user may be advantageous if the person has little or no credit history. The authorised user can benefit from building their credit history by using their credit card responsibly because it will aid them later when they need credit.

Sharing responsibility:

The authorised user's charges are entirely your responsibility as the primary cardholder. Ask yourself if you can rely on the cardholder to handle their spending wisely and pay their bills on schedule. Remember that credit history can be impacted by abuse or nonpayment.

Financial repercussions:

Adding an authorised user may damage your credit score and credit utilisation ratio. The authorised user's excessive use of the card or large balances might raise your debt load and credit utilisation, harming your creditworthiness.

Risk of debt buildup:

Adding an authorised user increases the likelihood of using your credit card for subsequent purchases. Consider whether the authorised user's spending patterns fit your financial objectives and whether you're okay with the possibility of your credit card amount rising.

Privacy issues:

When adding a user, you must disclose their account and transactional information. Adding an authorised user might not be the best option if you are concerned about privacy or desire to keep your financial issues secret.

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Adding someone to your credit card account isn’t the only way to help them financially. Helping them manage their personal finances can go a long way in helping them become financially independent!

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Frequently Asked Questions

1. How many authorised users can be on a credit card?

Credit card providers have rules on authorised users, but not always a strict limit. Adding more users affects both the cardholder and authorised users. The primary cardholder is responsible for all charges, no matter who made the purchase.

2. How old does an authorised user have to be?

The minimum age requirement for an authorised user on a credit card varies by issuer, but generally, most require users to be at least 18 years old due to legal capacity requirements. However, some issuers may allow teenagers to be added if certain conditions are met, such as having a parent or guardian as the primary cardholder assuming responsibility for charges.


Fi Money is not a bank; it offers banking services through licensed partners and investment services through epiFi Wealth Pvt. Ltd. and its partners. This post is for information only and is not professional financial advice.
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