What are the pros and cons of adding an authorized user to a credit card?

The pros of adding an authorized user to a credit card outweigh the cons in most cases. The primary pro of adding an authorized user to an account is that it allows the authorized user to build credit, while the biggest con is that you are responsible for any purchases the authorized user makes.

Fortunately, there are ways to manage the downsides of this arrangement. For one thing, you don’t have to give the authorized user an actual card to use as they see fit. Simply being listed on your account is enough for them to build credit, provided you pay the bills on time. You can learn more about the possible pros and cons of adding an authorized user below.  

Pros of Adding an Authorized User

• Helps a friend or family member improve their credit score.
• Gives the authorized user access to better rewards or lower interest rates than they might get otherwise.
• Enables the user to make purchases, whether for everyday needs or emergencies, if you decide to give them an actual card.
• You will earn rewards on the authorized user’s purchases if you have a rewards card.
• Some credit cards give bonus rewards for adding an authorized user.
• Adding an authorized user will not affect your credit score.

While there are some obvious benefits to adding an authorized user, there are also some downsides to consider before you add one.

Cons of Adding an Authorized User

• You share your credit limit with another user, so you may have less available credit when you go to buy something due to their purchases.
• You are legally responsible for paying off the authorized user’s purchases.
• Missed payments can hurt the authorized user's credit score as well as the primary accountholder’s score.  

Adding an authorized user can be both convenient and a great way to help someone else build their credit, so long as it’s a person you trust to use your account responsibly. Be sure to take a look at WalletHub’s authorized user guide for a full breakdown of how to add an authorized user and everything that comes along with doing so.