An authorized user is a person who is added to someone else’s credit card account, gaining the ability to make purchases without being legally responsible for the payments. This arrangement is often used as a credit-building strategy because, if the card issuer reports authorized user data to the credit bureaus, the account’s history, such as credit age, payment record, and credit utilization, can be added to the authorized user’s credit report.

This process, sometimes called credit piggybacking, can be especially helpful for individuals with little or no credit history, or for those trying to rebuild after past financial setbacks. For example, parents might add a teenager to their card to help them start establishing credit before they apply for student loans or an auto loan. Similarly, spouses may use this method to help one partner improve their credit score more quickly.

However, the strategy only works when the primary cardholder has a strong history of on-time payments, low utilization, and a long-standing account in good standing. If the account carries high balances, late payments, or other negative marks, those issues can also be reported to the authorized user’s file, hurting their credit instead of helping.