Being an authorized user on a positive credit account is one of the most commonly used strategies for boosting credit scores with tradelines quickly and painlessly. Of course, those who are looking to become authorized users must find an account that has been in good standing for a long time for the best possible outcome.
If you are someone who is just dipping your toes into the world of credit, you might have a pretty thin account. This is when becoming an authorized user is the most beneficial. However, this can also work if you’re just looking to overcome some negative credit lines in your past.
Before we dive into how this is possible, let’s make sure that you know exactly what an authorized user is.
The Definition of an Authorized User
An authorized user is someone who has been added to another person’s credit card account to hopefully build their own credit quicker. You can then decide whether you want to actually carry out purchases on that account or just have the authorized user title. This is truly up to you and the account holder.
Regardless, becoming an authorized user can help to add a bit of meat to your credit history.
How Will Becoming an Authorized User Affect Your Credit Score?
The effect can vary greatly depending on whether or not you have attempted to build up credit before. The people who see the most benefit from becoming authorized users are the people who have little to no credit history overall.
Your best bet is to find someone that has a solid payment history and that has an account that has been seasoned (aka open for a long time). You’ll also want to make sure that the card issuer in question actually reports authorized users to bureaus. If not, it won’t have any effect on your credit score whatsoever.
What Else Can I Do To Boost My Credit Score?
Of course, becoming an authorized user isn’t the only thing that you should do if you’re trying to boost your credit score. Serious lenders who decide to dig into your account will want to see an honorable payment history, meaning they’ll want to see that you’ve paid your bills on time.
Alongside becoming an authorized user, we recommend applying for a credit card that you will be the primary holder for. If you are the primary account holder, the positive impact on your account will be far greater. It also works the other way too, so always make purchases with caution and pay on time.
By now, you should have a decent understanding of authorized users and whether or not it is the best solution for you. Make sure to find someone reliable, someone that you trust, and someone that has a positive credit history.
We hope that our article has helped you to take those next steps to increase your credit so that you can one day make a large financial decision of your own!