Becoming an authorized user is a common tip for individuals trying to build their credit. As long as you’re making payments on time and neither of you accrues a significant amount of debt, you shouldn’t notice any changes to your credit reports. However, what about the people who are being asked to add authorized users? How do authorized users affect you and your credit scores? In fact, authorized users won’t show up on your credit reports at all.
Building credit can feel like a slow and arduous process especially for young adults or those with limited credit history. One way to jumpstart your credit journey is by becoming an authorized user on someone else’s credit card. But how long does it take for an authorized user to show up on a credit report?
The answer, unfortunately, isn’t as straightforward as you might hope It depends on several factors, including:
- Whether the credit card issuer reports authorized user activity to credit bureaus. Not all credit card companies do this, so it’s important to check with the issuer beforehand.
- How long it takes for the credit card issuer to report information to credit bureaus. This can vary from issuer to issuer, but it typically takes 30-60 days.
- Whether the primary cardholder is using the credit card responsibly. If the primary cardholder is making on-time payments and keeping their credit utilization low, it will positively impact your credit score. However, if they miss payments or run up a high balance, it could hurt your credit score.
In general, you can expect to see your credit score change within 30-60 days of the authorized user account being reported to the credit bureaus. However, it’s important to note that this is just an estimate, and it could take longer or shorter depending on the factors mentioned above.
Here are some additional things to keep in mind about authorized users and credit reports:
- Only the primary cardholder is responsible for the debt on the account. Even if you are an authorized user, you are not legally obligated to pay off the balance. However, if the primary cardholder defaults on the debt, it could still negatively impact your credit score.
- You can remove yourself as an authorized user at any time. If you are concerned about the primary cardholder’s credit habits, you can request to be removed from the account. This will not affect your credit score, but it will prevent the account from appearing on your credit report in the future.
- Becoming an authorized user is not a guaranteed way to build credit. If the primary cardholder is not using the credit card responsibly, it could actually hurt your credit score.
If you are considering becoming an authorized user, it’s important to weigh the risks and benefits carefully. Talk to the primary cardholder about their credit habits and make sure you are comfortable with their financial situation. If you decide to become an authorized user, be sure to monitor your credit report regularly to make sure the account is being reported correctly.
Here are some additional resources that you may find helpful:
- Bankrate: How Being An Authorized User Affects Your Credit
- Reddit: When will my authorized user status show up on my credit report?
What’s the Point of Making Someone an Authorized User?
One reason people add an authorized user is for convenience. Making someone an authorized user could be a smart move if you regularly ask them to make purchases on your behalf. It can save you the trouble of giving them cash before a purchase is made or of having to reimburse them after one is made. It’s an easy way to monitor spending.
You might also be able to increase credit card rewards earnings. If you’re both spending money on your rewards card account, you could rack up points even faster. Some cards even offer bonuses for adding authorized users.
Another reason to make someone an authorized user is that it might help improve their credit score. Your credit limit, credit utilization, and payment history will impact their credit if your credit card company reports on authorized user credit reports. Your good account management may be helpful if someone has a short credit history or a bad credit history.
Does Removing an Authorized User Hurt Their Credit Score?
Depending on their credit history and whether the credit card was ever reported to the credit bureaus, removing an authorized user may or may not lower their credit score. When you remove them, the credit card company will eventually stop reporting your account on that person’s record. That can have a few impacts.
- It could change the person’s credit age. This reflects both the average age of the credit accounts and the age of the oldest credit account on a report. Eliminating an account that is among the oldest items on a person’s credit report can lower the total credit age. That can negatively affect a credit score.
- It could change the person’s credit mix. Credit mix is another factor that determines a credit score. A person’s credit mix may be harmed if they have no other revolving credit accounts and your credit card account is deleted from their report.
- It could change the person’s credit utilization. The amount of total credit limits that a person is using is known as credit utilization. Someone’s ratio may have decreased as a result of your credit limit raising their total credit limit. Removing your account could change that ratio. When determining credit score, credit utilization frequently has a greater impact than credit age and mix.
There are lots of options in the Credit Repair section, whether you’re looking to repair your credit or are ready for a rewards credit card. com credit card marketplace. Additionally, you should think about registering for ExtraCredit if you want to closely monitor your credit and add authorized users to your accounts.
How long does it take for authorized user to show on credit report?
How long does an authorized user account take to show up?
Before you’re added as an authorized user, you may want the primary account holder to ask their credit card issuer whether it reports authorized user accounts to the three major credit bureaus. If the card issuer reports to the bureaus, then the account will typically show up on your credit reports within 30 to 45 days.
When do authorized users show up on my credit report?
If this information is reported, it will typically show up on your credit report in around 30 days. However, some lenders do not report authorized users to credit bureaus, in which case the authorized user may not appear at all.
Do credit card issuers report account activity for authorized users?
Many credit card issuers do report account activity for authorized users to Equifax, TransUnion and Experian. However, be careful not to assume this is the case. You should review your three credit reports around 60 days after becoming an authorized user to verify whether the account shows up.
Does your credit card company report on authorized user credit reports?
If your credit card company reports on authorized user credit reports, your credit limit, credit utilization and payment history will affect their credit. If someone doesn’t have a lengthy credit history or has poor credit history, your positive account management might help.