Credit one bank authorized user
Will Authorized User Status Help You Build Credit?
What being an authorized user means
If you become an authorized user on someone else’s credit card, the issuer will send them a card with your name on it. As an authorized user, you’re not legally obligated to pay the debts that might accumulate on the account — that responsibility lies with the primary account holder. Work out with the account holder whether you’ll carry and use the card to make purchases, or simply be listed as an authorized user (the effect on your credit is the same either way).
How your credit report is affected
Because you’re not technically responsible for paying the bills, being an authorized user may not have a huge impact on your credit score. But it helps those with little or no credit history beef up their credit files.
Ask someone who uses a small portion of their credit card limit and has a clean payment history on an account that’s been open for a long time. Make sure the card issuer reports authorized users to the credit bureaus: If your authorized user status doesn’t show up on your credit reports, it won’t help your score.
Authorized user status alone might not increase your chances of getting approved for credit cards and loans in the future. Lenders checking your credit history want to see that you’ve managed your own credit accounts responsibly.
While you’re working on your score, consider applying for a secured credit card. You’ll have to pay a deposit up front if you’re approved. Secured cards allow you to prove that you can manage your own card. Being the primary account holder will have a much bigger impact on your credit score.
Know where your credit stands
How to build your credit significantly
- Pay your bills on time. Your payment history weighs heavily in your credit score, so don’t pay late — ever.
- Keep your balances low. Your credit utilization ratio (the amount you owe compared with your total available credit) also plays a big role. Aim to use no more than 30% of your credit limit on any card, and lower is better. If you can lower it to single digits, you are likely to get even better results.
- Take the long view. The length of your credit history is also important. Keep old accounts open even if you don’t use them often — unless there’s an annual fee or another good reason to close the account. Avo >