Definition
Someone added to another person's credit card who can spend on the account but has no legal obligation to pay it. The account's history often appears on the authorized user's credit report, which can help build credit.
Why it matters
Being added to a well-managed, long-standing card is one of the few legitimate shortcuts in credit building, common for young adults and partners. The flip side: the primary holder's missed payments can land on your report too.
Example
A parent adds their 19-year-old to a card with a 10-year spotless history and a $10,000 limit kept at low utilization. That history flows onto the teen's report, and within months they qualify for a starter card of their own.
Put it into practice
Related terms
This definition is educational, not financial, legal, or tax advice. U.S. rules and limits change; verify time-sensitive details with official sources. See our disclaimer.