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Adding an authorized user help others build credit — handy for anyone just getting started with credit cards.
Some cards don’t charge a fee for authorized users, but many of the best do (such as The Platinum Card® from American Express and Chase Sapphire Reserve®).
Even though additional fees don’t sound great, authorized users can get a bunch of benefits like airport lounge access and travel coverage.

See Insider’s guide to the best rewards credit cards.

If you’ve opened a rewards credit card that earns you valuable points, miles, or cash back, there are several reasons why you might consider adding an authorized user to your card.

For one, adding someone as an authorized user can help improve their credit score — as long as you make all your payments on time and in full, since your account record will be reflected in their score. Plus, when you add someone as an authorized user, you’ll earn points on all the purchases they make (though the flipside to this is you’ll only want to add someone you trust to not make purchases without your permission). 

Most credit cards don’t charge an additional fee to add authorized users. Premium cards, on the other hand, usually do charge fees to add a partner, family member, or spouse to your account. It can be worth paying the fee, though, because authorized users on premium cards like the Chase Sapphire Reserve® or The Platinum Card® from American Express can get benefits like airport lounge access and even hotel elite status.

If you’re considering paying to add an authorized user to your credit card, it makes sense to perform a cost/benefit analysis first, taking into account your personal situation. It’s also essential to fully understand the risks and benefits of adding an authorized user.

What is an authorized user?

Authorized users aren’t the main account holder; instead, they’re using a credit card that’s tied to the main account. Being added as an authorized user means the main account holder is assuming the risk. 

Although the bank will have identifying information for the other person, the account will usually be reported …read more

Source:: Business Insider


The 6 best credit cards for adding someone as an authorized user — so they can build credit and get benefits like airport lounge access

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