Definition:

A credit card authorized user is an individual who has been approved to use a credit card issued by a bank or other financial institution, but does not own the card. Instead, the card is owned by the primary cardholder, who has authorized the user to make purchases on their behalf.

Key Points:

• Authorized User: The user is not the owner of the credit card, but has been authorized by the primary cardholder to use it.
• Primary Cardholder: The owner of the credit card who has authorized the user to use it.
• Credit Limit: The user has a credit limit that they can charge against, as determined by the primary cardholder’s credit limit.
• Billing: The primary cardholder receives consolidated billing for all charges made by the authorized user.
• Shared Responsibility: The primary cardholder and authorized user are jointly responsible for any charges made on the card.
• Credit History: The authorized user’s credit history is affected by the primary cardholder’s credit history.
• Benefits: The authorized user may be eligible for the same benefits as the primary cardholder, such as rewards programs, cash back, and purchase protection.

Examples:

• A spouse is authorized to use a credit card owned by their partner.
• A parent authorizes their child to use a credit card.
• A business owner authorizes employees to make purchases on the company credit card.

Additional Notes:

• The authorized user does not have their own separate credit history. Their credit history is tied to the primary cardholder’s credit history.
• The primary cardholder can revoke authorization at any time.
• The authorized user is responsible for protecting the primary cardholder’s credit card from unauthorized use.
• The primary cardholder is ultimately responsible for all charges made on the card, regardless of whether they were authorized or not.