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Writer's pictureClare R. Okyere

Credit Boosting Tip: Become an Authorized User

Becoming an authorized user may be a way to boost your credit score as you prepare for a home loan. Read to learn more!

What is an Authorized User?


Any willing credit card holder may add an authorized user to their account.


An authorized user has permission to make purchases on the credit card, so obviously this status would only be granted when there is a relationship of trust.


An authorized user is NOT responsible for making payments on the credit card.


How Could Being an Authorized User Help Me?


On-time payments and low card balances have the same positive impact on the credit of an authorized user as they do on the primary account holder.


This can be extremely helpful for someone with limited credit history to begin establishing a strong credit score. It can also help someone with a less than ideal credit score raise their score.


Maintaining a credit score at or above 640, the preferred score for most lenders, will give you the most options and best available rates for your scenario when applying for your home loan.




How Could Being an Authorized User Hurt Me?


As an authorized user, you can be negatively impacted as well. Any late payments and/or high balances will negatively impact the credit score of an authorized user.


Be sure the individual willing to add you as an authorized user has responsible spending habits and a good credit history, or else this scenario could hurt you more than it helps.



Most Common Scenarios for Authorized Users

  • A parent with good credit habits adds a child with limited credit history as an authorized user

  • A family member with good credit habits adds a close relative working to establish or rebuild their credit

  • An individual with good credit habits adds a close friend looking to establish or rebuild credit


Terminating Authorized User Status


The primary account user can terminate an authorized user's status at any time for any reason.


Many times, the primary account user will have communicated a set time period or credit score increase after which he will terminate the authorized user's status.


Other times, the primary account user chooses to leave the authorized user on indefinitely until in no longer serves to be beneficial for one or both parties.


This is entirely at the discretion of the primary account holder.



Take Your Next Steps Today

Taking your next step today will bring you closer toward the reality of homeownership.

If you are thinking about buying a home in the future, talking to a licensed, professional mortgage expert is your first step. They can give you an honest assessment of where you currently stand, and suggest some steps to make home buying a reality.

At O Capital Group, we are happy to provide a no-cost phone or in person consultation. Call (602) 492-8930 today to connect with someone who can help you learn more.

Or, get started on your own through Blink - a safe, secure online loan application you can use on your own time:



Keep Us Posted On Your Journey Have you started working to improve your credit score? Let us know an accomplishment you've had, or a challenge you are working to overcome. We'd love to learn from your journey! Leave us a comment below.




At O Capital Group, we make home loans easy!

Call today: (602) 492-8930


This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.

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