How Does Being an Authorized User Affect My Credit Score?
Hey everyone! We’re back to answer
another one of your credit questions: How does being an authorized user
affect your credit score? It can help it, but it can
also hurt it. Let us explain. An authorized user is someone who “piggybacks” off
someone else’s credit, usually a friend or relative. Let’s say I let Ezra use one of my credit cards. The account will now appear on my credit
report even if I don’t use the card. So if Bethy pays her bills on time
and has good credit utilization, I should see my score go up. But on the flip side, if I become delinquent on payments,
Ezra’s score could fall. Bottom line: if I want to build my credit I’m not eligible for favorable
rates on my own, I can find someone who I trust
who I know has good financial habits. Maybe not Bethy…. Then, I’ll ask that person if they can add me
as an authorized user to one of their accounts. And make sure you’re responsible,
too, Ezra. He isn’t legally responsible to pay the
balance due on my credit card, But if he racks up debt that I can’t pay off,
his credit score will also suffer. Thanks, everyone.
See you next time.