Explore commonly used personal finance terms.
An authorized user is someone who is allowed to use a credit card account owned by another person but is not legally responsible for the debt. This setup is often used to help build a credit history, especially for family members or friends. If the primary account holder maintains good credit practices, it can positively impact the authorized user’s credit score. However, any missed payments by the primary holder can negatively impact the authorized user’s credit, underscoring the importance of managing the account responsibly.
