In the United States, some card issuers report authorized-user activity to credit bureaus. This may allow a young person to begin establishing history before having a card of their own, but it does not guarantee a credit score or a particular benefit.
How an authorized user may appear in credit history
When an issuer reports authorized users, information from the primary account may appear on the young person's credit report. Practices vary among both card issuers and credit bureaus, and the person does not need to use the card personally for account history to potentially be reported.
Adding someone as an authorized user does not guarantee a credit score or improvement. The effect depends on what is reported, the scoring model, and the other information in that person's credit file.
Management of the primary account matters
On-time payments, controlled balances, and an account in good standing may be treated differently from late payments, high balances, or other problems. The decision should therefore consider how the primary account will be managed over time.
The young person does not necessarily need to receive or use a physical card. Ask the issuer how it handles authorized users, which information it reports, and which bureaus receive the data.
Check the details before deciding
Ask whether the issuer reports authorized users to the major credit bureaus and whether age or identification requirements apply. Then monitor credit reports and keep the account in good standing.
Building credit early may make several steps of adult life in the United States easier. This educational information is not individualized financial advice.
What to confirm before adding your child
- Whether the issuer reports authorized users to credit bureaus
- Which bureaus receive information about the account
- Whether age or identification requirements apply
- How payments and balances on the primary account are managed
- How to monitor the young person's credit report
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