Hey WalletHubbers! Today we'll talkabout how being an authorized user on a credit card affects your credit score.
When you become an authorized user, the account is added to your credit report,which means on-time payments by the primary cardholder will help you buildgood credit history.
But because authorized users are not responsible for paying thebills, credit scores don't give authorized user accounts as much wait.
Sobeing one won't allow you to build credit as fast as you could with yourown credit card account.
And one other thing to watch out for is that being anauthorized user can hurt your credit if the primary account holder doesn't paythe bills on time.
But the good news here is that you can just remove yourselffrom that account in question and file a dispute with the credit bureaus to getany of that negative information removed and the account taken off of your creditreports.
So now that you know more about becomingan authorized user on a credit card account, here's how it actually works.
Step one: you ask a friend or family member to add you to their credit cardaccount as an authorized user.
and actually, they don't even need to giveyou a physical credit card to do that.
So they don't need to hand over the plastic.
Number two is that the credit card account gets added to your creditreports just like if it were your own account.
Then the issuer gives updated account information to the credit bureaus on amonthly basis.
So all of this new information is now coming into yourcredit reports.
Your credit score improves as long as the account ownerhas on-time payments and low credit utilization.
But your credit does get hurt if the account holder behaves irresponsiblywith that account.
And that's it! To track what happens to your credit scoreafter being added as an authorized user, sign up for a free WalletHub accounttoday.