20 Apr 2022

The Authorized User Credit Strategy

Sometimes referred to as “credit piggybacking,” the authorized user credit-building strategy is a very common method where you build credit as an authorized user on someone else’s account. While this method has been around for quite some time, it has gained popularity in the past decade, especially with those who have low or no credit and want to build their credit fast.

Today, we’re going to explore the ins and outs of the authorized user credit strategy to help you determine if it’s the right move for you in your quest to boost your credit.

The Authorized User Credit Strategy
The Authorized User Credit Strategy

What Is an Authorized User?

An authorized user is someone who has been added to the existing credit card account of a primary cardholder. The beauty of becoming an authorized user is that you do not have any responsibility for the debt on the credit card account, yet you can take advantage of the benefits of that credit account, such as age, history, etc.


Why This Strategy Works

The authorized user strategy is a great strategy for building credit, as the majority of credit card issuers will take the history of the primary account holder’s existing account and add it to the authorized user’s credit reports, whether through TransUnion, Equifax, or Experian.

The authorized user method has become such a popular method for consumers trying to build or strengthen their credit. Many parents use the authorized user method so that their children can start building credit sooner than later, at least once they turn 18.


How Can Being an Authorized User Impact My Credit?

With so many financial “gurus” on YouTube and Reddit forums claiming false information surrounding authorized users, it’s no wonder so many people never take advantage of this method.

However, reality is that pretty much all of the credit scoring models out there, including VantageScore and FICO, consider authorized user accounts when calculating the credit scores of consumers.

So, if a consumer with a credit card account has properly managed it, they have the potential to bump another person’s credit score up on their credit report by allowing them to become an authorized user.


Do Authorized User Tradelines Still Work in 2021?

If you have poor credit, authorized user tradelines CAN help boost your credit score.

By making use of an authorized user tradeline, reaping the benefits of a higher credit score isn’t far out of reach. Consumers with great credit scores will often use authorized user tradelines so they can take the next steps in life and have greater access to loans that would otherwise be beyond their financial means.

Here at Boost Credit 101, we like to make sure that our customers have the best understanding of tradelines so they can make the perfect financial decisions for their futures.

We know that trying to obtain good credit might feel like an uphill battle, which is why we believe it is so important to have the right company by your side, as the right company can provide you with all of the necessary knowledge and tools to get you through the tradeline buying process.

Are you ready to take your first steps toward better credit?

Make sure to get in contact with us!