For years, my husband and I ALWAYS applied jointly for each credit card. Both of our names were on each and every card. That worked fine for years. Then I found how to use credit card points and miles, and we quit that for good. Most major credit card issuers don’t even allow joint accounts anymore. But they do allow authorized users. Let’s talk all about credit card-authorized users.

The reason that we advise not adding authorized users is that when you do this, EACH of you takes a Chase 5/24 spot. This means that you will be approved for fewer Chase cards in the long run. You can also have them remove the authorized user, but it’s just easier not even to do it. An authorized user can still get their own card.

To remove an authorized user so that their 5/24 status isn’t affected, do the following:

• Call the number on the back of your card and ask that the authorized user be removed.
• Call all 3 credit bureaus to remove the authorized user account from your report (Equifax, Experian, TransUnion).

You can actually add anyone as an authorized user. Just be careful, as YOU are the one responsible for the payment.

 

 

Logistics

When someone is added as an authorized user, they get their own card with their own number. That number is just linked to the original user’s account. The primary cardholder is still responsible for all payments. Because any credit card earning of points/miles will be credited to the primary cardholder, there is not a lot of benefit to the authorized user unless they are trying to build credit. In this case, it can help a spouse with a low score or a college-age student to be added as an authorized user.

Occasionally, the primary cardholder may earn extra miles/points for adding an authorized user, but it is usually not a significant amount. For instance, AMEX often will offer me 10k Membership Rewards for an authorized user. Not worth it to me to do this for my spouse and have him use a 5/24 spot.

Adding an authorized user can have benefits occasionally. This is true if you hold the AMEX Platinum card and can get lounge access, but your spouse can’t. If you don’t want to open up another card with a high annual fee, you may justify adding them on as an authorized user (at a cost of $175 for 3 people) so you can go into airport lounges together. Taking a family member into a Centurion Lounge would cost you $50/visit, so it might make sense to add them as an authorized user if airport lounges are your thing (they are definitely my thing)!

 

Sharing a Card

We often hear about people who put their spouse/partner as an authorized user so they can get two cards to make it easier to meet minimum spend. This is not necessary. It is easier for one person to add it to their “wallet” on their phone. This lets both parties use the card but does not take a 5/24 spot.

 

Exceptions to the Rule

One of the best lounge access credit cards is the Capital One Venture X card, as you can bring in two guests with you to Capital One Lounges, Priority Pass Lounges, Plaza Premium Lounges, and Virgin Atlantic Clubhouses. You can add an authorized user for free. If you have a family, it may make sense to add your spouse as an authorized user so that you can bring your entire family into a lounge. Saving on food and beverage for a family can add up and make it worth a 5/24 spot.

 

Costs for Authorized Users

Costs for authorized users vary per card. Many cards allow you free authorized users, some let you have one free authorized user, and others charge you for each authorized user.

 

Building Credit History

Credit card issuers report to the secondary cardholder’s credit file. Utilization, age of account, and history of repayment, are the same for all cardholders on the account, so adding an authorized user can help build a credit history. If the account has been open for a long time and the primary account holder has used it responsibly—including making all payments on time and keeping the balance low relative to the credit limit, it can really help the authorized user increase their credit score.

The age for authorized users varies per credit card issuer, so check with your bank to see how old a child needs to be. This is a fabulous way to start building credit for your child. If the account has been open for a long time and the primary account holder has used it responsibly—including making all payments on time and maintaining a low credit utilization ratio, meaning the balance is low relative to the credit limit—it can benefit you.

 

 

Bottom Line

You may be tempted to add a spouse or a partner as an authorized user. We don’t ever advise this unless you decide that you want the Venture X card for lounge access for the rest of the family. Otherwise, always apply separately. We want ALL the points we can get, so we want to get those points that our spouses can get too. You seriously limit the number of credit cards you can apply for if you are an authorized user on a card, so think twice!