How to add an authorized person to your credit card

There are several reasons why add an authorized person to your credit card It could be beneficial to your personal or that person's finances.

You may be thinking about enhancing a child's credit history, taking care of one of your parents, or sharing expenses with a partner. It is a simple process that we will explain to you in detail.

Article content

1. What is an authorized user
2. How to add an authorized user for your TOC
3. Advantages and disadvantages of adding an authorized
4. How to remove an authorized person from your credit card

What is an authorized user

An authorized user of your credit card is a person who is assigned an additional plastic with their name so that they can use it under your responsability.

When you contract this instrument, you become the primary cardholder, but you have the possibility of taking out additional plastics for family, friends or business partners.

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We can summarize some of the most important aspects in this way:

• The authorized user does not need to have income or credit history. Nor should you apply for the card.
• The authorized person is not responsible under the law to pay the credit debt contracted. That is up to the primary cardholder.
• Both the person responsible for the plastic and the aggregate share the same credit limit and, depending on the bank, you can assign a specific amount of expense.
• Depending on the bank, there may be a limited number of authorized and having them may mean an additional commission or not.
• When spending or purchasing, the authorized user usually receives the same promotions or discounts for the primary cardholder. Although this does not happen with certain benefits.

How to add an authorized user for your TOC

We reiterate that the process of adding an authorized person to your credit card has no complications. In general, it is done with the request of the plastic, but there are banks or issuers that allow you to do it at any time.

If you don't do the operation in person, you can call the number on the TDC or visit the bank's website. When you add the authorized online through the bank's page, you should find the section or link that indicates Authorized users (AU) or Add authorized user.

Then you will have to provide certain personal information basic beneficiary, which usually includes:

• Direction
• Full name
• Date of birth
• Social security number (if applicable)
• United States Citizenship Status (if applicable)
• Relationship with the main cardholder (if applicable)

Once you enter the information, you can make the request. Depending on the entity or issuer, approval could be instantaneous or take longer due to the identity verification of the authorized user.

If everything is correct, you or the beneficiary will receive the new credit card by mail, which must be activated.

Advantages and disadvantages of adding an authorized

According to what we have seen, you can assume that adding an authorized person also has its share of risk if it does not turn out to be the person you thought. However, the worst that could happen includes:

• How does your score. Depending on the bureau or the card issuer, any negative credit behavior could be included in the cardholder's file.
• Legal responsability. You run the risk of the authorized user deciding to spend it all at one point and without remorse. As you are not obligated to pay the debt, you will be responsible for assuming it.
• Greater possibility of overspending. The fact that two people use the same account means that you should pay more attention to expenses. If you go over the limit, you could incur overdraft fees, denied purchases, and even negatively affect your credit score.

Among the good things about this process, we highlight:

• Greater comfort. Having another card prevents you from lending all the time and transferring money to your family or friends who need it.
• Improve your credit score. Depending on how the issuer reports the licensee's behavior, your liability could raise your score.
• You don't lose rewards. Any prize available to the authorized user will be reflected in your accumulated balance of points or cash back.

How to remove an authorized person from your credit card

Just as there will be good times to add authorized to your TOC, there will also be others to remove them. A failed romance, a friend who failed to honor an agreement, or an out-of-control partner can all be reasons to change your mind.

The good news is that removing an authorized user is just as easy as adding it. You can visit the bank, do it online or call by phone. We recommend that you remove the plastic from the person and support the request with a certified letter.

In the event that the TDC is not returned, notify the issuer so they can assign you another number. Some entities that issue credit cards automatically send you a new one when you remove the authorized one.

At Hispanic Business Blog we are pleased that you know your financial alternatives well, so that you can make the most of the usefulness of having an authorized person to use your credit card.