Your credit report shows positive credit behavior when the principal cardholder performs a timely payment but instead pays off an outstanding debt. Know the method for canceling your authorized user status and the deadline for doing so before agreeing to add yourself as a cardholder. Treasury Department investigator Walter Delva-Gonzalez offers community-driven financial advice on his blog, The Neighborhood Finance Guy. "Anyone trying to be an authorized user for another person's card ought to have a purpose and exit plan from the outset," he says. When should someone think about deleting himself as an authorized user? We questioned Delva-Gonzalez.

What Exactly Is An Authorized User?

One who has been permitted to use another person's credit card as a primary user. One may phone their credit card company and request to add an authorized user. Then it might vary from card to card within the same issuer, or it may be offered at no additional cost by certain companies, while some impose a price for each approved user. Users who have been approved for access will get their credit cards. Authorized users may use the card the same way a primary cardholder would: to purchase items and add to their credit history. Most issuers will record approved user activity to credit agencies to help those with limited or no payment history establish a favorable credit profile.

What Effects Do Being An Authorized User Have On Your Credit

Responsible usage of the payment card history associated with an authorized user account may boost your credit score. This is to say, you've never been late with a payment, and your debt has never exceeded 30% of your available credit. However, even if you are an authorized user, problems like missed payments and large balances may hurt your credit.

Removing Yourself From The List Of Authorized Users

Getting yourself removed as an authorized user might be desirable for several reasons. Because unless your credit score but instead your ability to get approved for new credit card debts is taking a hit because of the account, you can have it eliminated from having a good credit report by removing yourself as an authorized user. 2 Potential reasons for wanting to cut off contact with the predominant account holder include the end of a romantic relationship. If you had been added to the list without your knowledge, you might want to remove yourself. You should contact the card issuer directly if you no longer wish to be listed as an authorized user on a credit card account. Depending upon that bank, you may be able to make this request as an authorized user.

What To Expect If You Have A Joint Account

Only a legitimate user will have this option to log out. If you and someone else are listed as joint banking customers on a credit card, you are legally responsible for the card's outstanding amount. Instead, you must settle the account by making the last payment and requesting its closure. Just like with a joint bank account, anyone cannot get it removed from your bank statement unless it was created unlawfully (some other person confirmed your name absent your knowledge or consent). If the account is maintained active and in good academic standing, this should continue to be somehow recognized for as long as the reporting time restriction allows.

Conclusion

Adding yourself as an authorized user on someone else's credit card is an excellent way to kickstart your credit history. Your credit may develop further if you know when to stop using it to make purchases. Don't join the ranks of authorized users unless you have a plan to leave. The sooner you start applying for your credit cards, the sooner you may stop being an authorized user without negatively impacting your credit rating. Credit card companies often don't need a reason for canceling an authorized user's access, but it's still polite to let them know in case they have any questions. That way, if they try to use the card and are denied at the register, they will know precisely why and will not keep trying to use it. What does adding someone as an authorized user to your account mean? Also included: are some compelling arguments for disabling that person's access to your credit card details.