How to add an authorized person to your credit card?

There are several reasons why adding an authorized person to your credit card might be beneficial to your or that person's personal finances.

You may be thinking about improving a child's credit history, caring for a parent, or sharing expenses with a partner. It's a simple process that we'll explain in detail.

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What is an authorized user

An authorized user of your credit card is a person who is assigned an additional plastic with his or her name on it so that he or she can use it under your responsibility.

When you sign up for this instrument, you become the primary cardholder, but you have the possibility to take out additional cards for family, friends or business partners.

We can summarize some of the most important aspects in this way:

• An authorized user does not need to have income or credit history. Nor does the authorized user have to apply for the card.
• An authorized user is not responsible under the law for repaying the credit debt incurred. That is the responsibility of the primary cardholder.
• Both the person responsible for the plastic and the aggregate share the same credit limit and, depending on the bank, you can assign a certain amount of spending.
• Depending on the bank, there may be a limited number of authorized ones and having them may or may not mean an additional commission.
• When spending or buying, the authorized user usually receives the same promotions or discounts for the primary cardholder. However, this is not the case with certain benefits.

How to add an authorized user for your TDC

Again, the process of adding an authorized user to your credit card is uncomplicated. Generally, it is done with the application for the plastic, but there are banks or issuers that allow you to do it at any time.

If you do not do the operation in person, you can call the phone number on the card or visit the bank's website. When you add the authorized user online through the bank's website, you should find the section or link that says Authorized users or Add authorized user.

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You will then need to provide some basic personal information about the beneficiary, which usually includes:

• Address
• Full name
• Date of birth
• Social Security Number (if applicable)
• U.S. citizenship status (if applicable)
• Relationship to primary cardholder (if applicable)

Once you enter the information, you can apply. Depending on the entity or issuer, approval could be instantaneous or take longer due to identity verification of the authorized user.

If everything is correct, you or the beneficiary will receive the new credit card in the mail in several days, which must be activated.

Each bank use to explain the process in its website, like Wells Fargo in its FAQ, Chase Bank or TD Bank, which explain it to help users to add authorized persons to their credit cards.

Advantages and disadvantages of adding an authorized person

Based on what we have seen, you can assume that adding an authorized person also has its share of risks if it does not turn out to be the person you thought it would be. However, the worst that could happen include:

• How it affects your score. Depending on the bureau or card issuer, any negative credit behavior could be included in the cardholder's file.
• Legal liability. You run the risk of the authorized user deciding to spend it all at a moment's notice and without remorse. Since he/she is not obliged to pay the debt, you will be responsible for taking it on.
• Increased possibility of overspending. The fact that two people use the same account means you have to pay more attention to spending. If you go over the limit, you could incur overdraft fees, denied purchases and even negatively affect your credit score.

Among the good things about this process, we highlight:

• Greater convenience. Having another card at your disposal will prevent you from borrowing from time to time and transferring money to your family or friends who need it.
• Improves your credit score. Depending on how the issuer reports the authorized person's behavior, your responsibility could raise your score.
• You don't lose rewards. Any rewards available to the authorized user will be reflected in your accumulated points or cash back balance.

Removing an authorized user from your credit card

Just as there will be times to add authorized users to your card, there will also be times to remove them. A failed romance, a friend who didn't honor an agreement or an out-of-control partner can be reasons to change your mind.

The good news is that removing an authorized user is just as easy as adding them. You can visit the bank, go online or call. We recommend that you remove the person's plastic and back up the request with a certified letter.

In the event that the card is not returned to you, notify the issuer so that they can assign you another number. Some credit card issuers send you a new one automatically when you remove the authorized person.

At Busconómico we are pleased that you are well aware of your financial alternatives, so that you can take full advantage of the usefulness of having an authorized person to use your credit card.

Español: ¿Cómo añadir un autorizado a tu tarjeta de crédito?