Learn the pros and cons of building credit as an authorized user, plus other ways to establish credit on your own.
If someone you trust has offered to add you to their credit card as an authorized user, you might wonder if it's a smart shortcut to building credit. It can help, but it's important to understand how it works and the risks involved.
What is an Authorized User?
An authorized user is someone added to another person's credit card account. You may receive a card with your name on it, but you didn't open the account, and the primary cardholder remains responsible for paying the bill.
How Can It Help Build Credit?
Many credit card issuers report account activity for both the primary cardholder and authorized user. If they do, the account's payment history, age and credit utilization may become part of your credit profile.
That can be helpful if the primary cardholder has a long history of paying on time and keeps their balance low. For someone with little or no credit history, it may provide a head start.
Understanding the Risks
The biggest drawback is that you're relying on someone else's financial habits. If the primary cardholder misses a payment or carries a high balance, it could negatively impact your credit, too.
You also have limited control over the account, and not every card issuer reports authorized-user activity to the credit bureaus. Before agreeing, confirm how the account is reported and have an honest conversation about spending, payments and expectations.
Want to Build Credit on Your Own?
Becoming an authorized user isn't the only option. If you'd rather establish credit based on your own financial habits, MMFCU offers tools designed to help.
- Secured Credit Card: With an MMFCU Secured Credit Card, you set aside $100 to $500 in a secured savings account, which becomes your card limit. MMFCU reports the card's status to the three major credit bureaus, so using the card responsibly and making payments when they're due can help you build your own credit history over time.
- Credit Builder Loan: MMFCU's Credit Build Loan offers another approach. MMFCU provides $500 to $2,000 as collateral. As you make monthly loan payments and build credit history, the money is released to you to use or save toward a future purchase.
Both give you an opportunity to build credit through your own payment history, rather than depending entirely on someone else's account.
The Bottom Line
Becoming an authorized user can be a helpful way to begin building credit, but it comes with shared risk. Before deciding, look at the primary cardholder's financial habits, understand how the account will be reported, and consider whether building credit independently might be a better fit.
MMFCU members can access SavvyMoney® at no cost through Online Banking and the Mobile App to monitor their credit score, see what's impacting it, receive credit monitoring alerts and explore tools to help improve their financial health.
Log in to Online Banking or the Mobile App and check your credit score with SavvyMoney® today.
Sources: SavvyMoney, "Should You Become an Authorized User to Build Credit?" by Matthew Mack, July 30, 2026; Mid Minnesota Federal Credit Union, mmfcu.org.