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Extend Your Rewards and Share the Benefits: Adding Authorized Users to Your Credit Card Account

Are you looking for ways to give family members or friends access to your credit card account or want to provide them with the benefits and rewards that come with it? Adding an authorized user to your credit card account may be the way to go.

This article will help you understand what authorized users are and why you might want to add them to your account. Additionally, we’ll share some of the best credit cards for authorized users, highlighting their key features and benefits.

What are Authorized Users? Authorized users are people you give permission to access your credit card account.

Typically, authorized users have their own cards with their names on it and a separate credit card number that’s linked to your primary account. The primary account holder is responsible for paying all charges and fees associated with the authorized users accounts.

Authorized users may have different levels of access to your credit card account. Some may have a limited credit limit or be restricted in how they can use the card.

Other authorized users may have unrestricted access to your credit card account and may have a credit limit equal to the primary account holder.

Reasons to Add Authorized Users

Adding authorized users to your credit card account can be beneficial in several ways, including:

Helping to Build Credit: If you add someone with little or no credit history as an authorized user to your credit card, their credit score may improve over time. As the primary account holder, youll be responsible for paying all charges, so its important to set limits on the authorized users spending to ensure that you can pay the balance in full each month.

Sharing Card Benefits and Features: Many credit cards offer unique benefits and features such as travel rewards, cashback, or low-interest rates. By adding an authorized user, you can share these benefits with someone else.

Lower Annual Fees: Some credit cards charge annual fees, but adding authorized users to your account may help you offset some of the costs. This is because most credit card companies offer a free card for authorized users, which can help you avoid paying an additional annual fee.

Best Credit Cards for Authorized Users

1. Capital One Venture X Rewards Credit Card

The Capital One Venture X Rewards Credit Card offers a range of premium travel benefits that can be enjoyed by both the primary account holder and authorized users.

With this card, you get free access to the Priority Pass airport lounge network, Hertz President’s Circle status, and a variety of other travel-related perks. 2.

The Platinum Card from American Express

The Platinum Card from American Express is one of the premier travel credit cards on the market. With this card, you and your authorized users can enjoy access to the Global Lounge Collection, Marriott Bonvoy, Hilton Honors, TSA PreCheck, and Global Entry.

The card comes with a yearly fee, but its benefits can more than justify the cost. 3.

Chase Sapphire Reserve

The Chase Sapphire Reserve is a premium travel credit card that offers significant annual travel credit and access to the Priority Pass airport lounge network. It also provides travel and purchase coverages that can be helpful for both the primary account holder and authorized users.

4. Chase Sapphire Preferred Card

The Chase Sapphire Preferred Card is an excellent option for someone looking for a low annual fee while still enjoying some of the benefits that come with a premium travel credit card.

It also provides travel coverage and purchase protection that could be useful for you and your authorized users. 5.

American Express Gold Card

The American Express Gold Card is a unique card best suited for people who frequently dine out and enjoy trying new restaurants. This card offers bonus rewards at US restaurants and grocery stores and doesn’t charge an annual fee.

6. Blue Cash Preferred Card from American Express

The Blue Cash Preferred Card from American Express is a good option for those who spend heavily on groceries.

It offers bonus rewards at US supermarkets with no annual fee for the first year.

Final Thoughts

Adding authorized users to your credit card account can provide you and your loved ones with a range of benefits. However, before you add someone to your account, it’s essential to consider the risks and responsibilities that come with it.

Make sure to communicate expectations with the authorized user and ensure they understand the rules and restrictions before granting them access to your account. Adding an authorized user to your credit card account is a relatively simple process that varies slightly depending on your card issuer.

Below is a general process that outlines the necessary steps:

1. Contact your Credit Card Issuer: The first step is to call your credit card issuer or visit their website to determine their specific process for adding authorized users.

Most credit card companies will provide you with a clear set of instructions for adding an authorized user. 2.

Provide Personal Information: You’ll need to provide personal information about the authorized user, such as their name, address, date of birth, and Social Security number. 3.

Set Account Access Limits: As the primary account holder, you can choose the level of access that an authorized user will have to your credit card account. This may include setting a lower credit limit or determining which types of purchases the authorized user can make.

4. Order the Card: The final step is to order the authorized user’s card.

In most cases, this can be done online or over the phone. The authorized user will receive their card in the mail within a few business days.

It’s important to note that adding an authorized user to your credit card account comes with some responsibilities. As the primary account holder, you are responsible for all charges made by the authorized user.

You’ll also be responsible for paying the balance in full each month, so it’s essential to monitor the authorized user’s spending to ensure that it stays within your budget. FAQs:

1.

Building Credit as an Authorized User:

Adding an authorized user to your credit card account can be an effective way to help them build credit. As an authorized user, the individual’s credit history will be reported to the credit bureaus, and their credit score could improve over time.

To ensure that the authorized user’s credit score improves, it’s essential to keep their credit utilization low and make all payments on time. Credit utilization is the amount of credit being used compared to the amount of credit available.

Keeping it below 30% is ideal. Late or missed payments impact your credit score negatively.

If the authorized user consistently pays their bills on time and keeps their credit utilization low, their credit score will improve over time. 2.

Annual Fees for Authorized Users:

Credit card companies have different policies regarding annual fees for authorized users. Some premium travel cards charge additional fees for authorized users.

In contrast, others are free. It’s important to weigh the benefits of adding an authorized user against the cost of having an additional cardholder.

If the benefits of adding an authorized user outweigh the cost, then it may be worth paying the annual fee. However, if the authorized user will not be using the card frequently or the annual fee is too high, it may not be a wise investment.

3. Credit Score Increase as an Authorized User:

Being an authorized user can contribute positively to credit history and impact your credit score.

However, adding an authorized user isn’t guaranteed to lead to a credit score increase. If the primary account holder’s credit history and utilization are poor, then it’s possible that adding an authorized user could harm their credit score.

For an authorized user to impact their credit score positively, they should be added to a credit card that has a low balance and a long credit history. The primary account holder’s on-time payments, credit utilization ratio, and other credit habits all have an effect on the authorized user’s credit score.

Conclusion:

Adding an authorized user to your credit card account can be an excellent way to help someone build credit, share card benefits, or offset annual fees. The process of adding an authorized user is generally straightforward, but it’s important to understand the responsibilities that come with it as the primary account holder.

If you are considering adding an authorized user to your account, it’s essential to weigh the benefits against the cost. Some premium travel cards charge annual fees for authorized users, and if the cost of the card outweighs the benefits, then it may not be worth it.

Ensure that the authorized user adheres to the set credit limits and understands the spending rules to avoid any discrepancies. Ultimately, adding authorized users can be a great way to build credit and enjoy card benefits together.

Overall, adding an authorized user to your credit card account can be a great way to extend the benefits of your credit card to your family members or friends. It can help your loved ones build their credit over time and share the rewards and benefits that come with your credit card.

However, it’s essential to understand the responsibility that comes with adding an authorized user and ensure that they adhere to the set credit limits. To make the most out of this option, it’s important to choose the right credit card for your needs and compare the costs and benefits to ensure the best value.

With this guide, you can now add authorized users to your account confidently.

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