What is an additional cardholder?

An additional cardholder or authorized user, is a second user on someone’s credit card account. Additional cardholders usually don’t qualify for a card because they have little or no credit history. Additional cardholders can begin to build their credit history if the credit card company reports payments to a credit bureau.

What can additional cardholders do?

Additional cardholders can:

• Make purchases
• Get cash advances
• Check the account balance
• Report suspicious transactions
• Set up a PIN distinct from the primary cardholder
• Order and activate a replacement card
• Cancel their cardlet me think
• View the transaction history
• Make payments
• Earn and redeem reward points

How to add an additional cardholder

Most credit card issuers allow the primary cardholder to add other people—usually a family member—to their account with a small fee or sometimes for free.

The primary cardholder needs to provide their card provider with the additional cardholder’s name and date of birth. This can be done over the phone or online.
Once added, the additional cardholder receives a credit card in their name, sometimes with the same number as the primary account and sometimes with a different number. The additional cardholder can make purchases as soon as they receive the card.

The additional cardholder typically shares the same credit line and has the same credit limit as the primary cardholder.

Why add a cardholder?

The most common reason why someone adds and additional cardholder is because the latter doesn’t have enough credit to qualify for a card on their own. This is common with students or graduates who are just starting to become independent.
Adding an additional cardholder allows them to build credit and eventually qualify for a card.

Pros and cons of adding an additional cardholder

The major benefit is that the additional cardholder can make purchases without needing to use the primary account holder’s card. The primary card holder also receives rewards or benefits such as cash back, airline miles, and so on when more purchases on their card.

On the flip side, adding someone to a credit card risks the primary cardholder’s financial health and credit standing. The primary cardholder is responsible for all of the charges on the card and will need to pay the credit card bill each month, whether or not the additional cardholder contributes. If they can’t make payments in time, it negatively impacts their credit score. If the additional cardholder charges massive sums and doesn’t pay them, the primary cardholder could face bankruptcy.

Alternatives to adding or being an additional cardholder

There are several alternatives to becoming an additional cardholder. These include:

• Opening a joint credit card account
• Opening a credit card account with a co-signer
• Applying for a secured credit card

Additional cardholders vs. joint accounts

Joint account holders apply for a credit card together, with both of their credit histories considered by the card issuer when deciding whether to approve the application. Joint account applicants must be at least age 18. In addition, both joint account holders are responsible for the payments on the account.

Additional cardholders are added to an existing account and don’t need to be 18. Unlike joint account holders, only the primary account holder is ultimately responsible for paying the credit card bills.

How does co-signing for a credit card work?

A person who does not qualify for a credit card can also ask someone with a strong credit history to co-sign their application to get a card in their name. The co-signer is responsible for the bill if the other person does not make payments.

How does a secured credit card work?

With a secured credit card, the cardholder deposits money into a bank account for the card issuer. The deposit is a credit limit they can charge against when they use their card. If they pay their credit bills each month, they can qualify for an unsecured card after a certain period.

Can you remove an authorized or additional user from your credit card?

Yes, you can remove users by contacting the card issuer. The Consumer Financial Protection Bureau says, “you can also ask the card issuer if you should get a new card with a new number. This is a good idea if the authorized user has your card number.”