Becoming an Authorized User Vs. Opening a Secured Credit Card

First things first, what’s the authorized user strategy? An authorized user is someone who is added to an existing credit card account as someone who can use the account, but has no contractual liability for the payment.

The authorized user gets a card with their name on it, but cannot make changes to the account. They have full access to the card’s credit limit, but they don’t get the bill at the end of the statement period. It’s like having a credit card with training wheels.

Credit card issuers commonly report the credit card account to the credit reports of the authorized user. And, if the account is old, has a clean payment history and a low balance relative to the credit limit, it can help to establish a strong credit report and credit score for the authorized user.