An authorized user is a secondary account holder on a credit card, which means the user has access to an existing credit card account but ultimately isn’t responsible for making payments. Although someone can become an authorized user of a sibling’s or even a friend’s account, the most common arrangement is between a parent and a child. The arrangement benefits young adults who may not qualify for credit on their own because they have little or no credit history and limited income. Although most credit card companies won’t issue a card to someone who is younger than 18, a child who is younger than that can be an authorized user.
This story is from the February 2021 edition of Kiplinger's Personal Finance.
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This story is from the February 2021 edition of Kiplinger's Personal Finance.
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