If you’ve got your parents’ credit card in your wallet, even if it has your name on it, you’re likely an authorized user. It’s a super common way that families share money. When it comes to credit scores, it can be a way to help build your credit before you turn 18. Being an authorized user also keeps you from having to navigate the process of obtaining a student credit card or a normal credit card while you’re in college. All that said, there are some definitive pitfalls to being an authorized user that we should talk about.
When someone gets a credit card, they’ll usually have the option to add authorized users onto their account. For example, if your parent opens a credit card under their own name, they can give you a card with your own name on it too - though the card is still tied to their account.
All the purchases that an authorized user makes are are the responsibility of the accountholder. So when you’re an authorized user on your parents’ credit card, they’re ultimately responsible for what you charge to the card.
If you look around for the answer to this question, you’ll find a pretty resounding yes - as long as the account holder is being financially responsible. If the account holder isn't paying their bills on time, it could be negatively impacting your score. If this is the case, you can ask to be taken off as an authorized user or you can contact the card company to request that they remove you. However, it’s true -in many circumstances, being an authorized user can be a good way to kickstart your journey towards a great credit score.
But, as we mentioned, as an authorized user you’re not an account holder. You’re reported to the credit bureaus as an authorized user - and some cards don’t report authorized user data at all. Think of it as creating a soft credit score. Being reported as an authorized user doesn’t necessarily increase your chances of being approved for other lines of credit. A lot of times it leaves you with a high score without an accompanying history of having your own account. For many lenders, that’s the same as having a low score - or no score at all.
Look, if you want to keep a parent’s credit card in your back pocket in case of emergencies, we won’t blame you. But there are a handful of reasons why you should look elsewhere for your day-to-day spending as soon as you start college. And a Fizz card is a great way to do so.
A Fizz card is the best option out there for college students looking to build credit, earn rewards, and build towards financial independence. With Fizz, you won’t have to worry about the small stuff. We don’t let you spend more than you have and your purchases are paid off every day so they don’t pile up.
Fizz is your own card. It’s your own account, attached to your name, and it helps build your credit while earning you rewards. In terms of financial independence, it’s way better than just being an authorized user. Plus, we’ve got loads of financial resources to help you get ahead and stay ahead. So what are you waiting for! Click the button below and join Fizz today.
If you’ve got your parents’ credit card in your wallet, even if it has your name on it, you’re likely an authorized user. It’s a super common way that families share money. When it comes to credit scores, it can be a way to help build your credit before you turn 18. Being an authorized user also keeps you from having to navigate the process of obtaining a student credit card or a normal credit card while you’re in college. All that said, there are some definitive pitfalls to being an authorized user that we should talk about.
When someone gets a credit card, they’ll usually have the option to add authorized users onto their account. For example, if your parent opens a credit card under their own name, they can give you a card with your own name on it too - though the card is still tied to their account.
All the purchases that an authorized user makes are are the responsibility of the accountholder. So when you’re an authorized user on your parents’ credit card, they’re ultimately responsible for what you charge to the card.
If you look around for the answer to this question, you’ll find a pretty resounding yes - as long as the account holder is being financially responsible. If the account holder isn't paying their bills on time, it could be negatively impacting your score. If this is the case, you can ask to be taken off as an authorized user or you can contact the card company to request that they remove you. However, it’s true -in many circumstances, being an authorized user can be a good way to kickstart your journey towards a great credit score.
But, as we mentioned, as an authorized user you’re not an account holder. You’re reported to the credit bureaus as an authorized user - and some cards don’t report authorized user data at all. Think of it as creating a soft credit score. Being reported as an authorized user doesn’t necessarily increase your chances of being approved for other lines of credit. A lot of times it leaves you with a high score without an accompanying history of having your own account. For many lenders, that’s the same as having a low score - or no score at all.
Look, if you want to keep a parent’s credit card in your back pocket in case of emergencies, we won’t blame you. But there are a handful of reasons why you should look elsewhere for your day-to-day spending as soon as you start college. And a Fizz card is a great way to do so.
A Fizz card is the best option out there for college students looking to build credit, earn rewards, and build towards financial independence. With Fizz, you won’t have to worry about the small stuff. We don’t let you spend more than you have and your purchases are paid off every day so they don’t pile up.
Fizz is your own card. It’s your own account, attached to your name, and it helps build your credit while earning you rewards. In terms of financial independence, it’s way better than just being an authorized user. Plus, we’ve got loads of financial resources to help you get ahead and stay ahead. So what are you waiting for! Click the button below and join Fizz today.
