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Old 08-18-2018, 02:01 PM
 
Location: Not where I want to be
4,827 posts, read 6,929,752 times
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Someone has a credit card and makes you an authorized user (and you have your own card under their account). Now, this person decides to stop paying the bill. Does this also affect the authorized user's credit? The authorized user did not find out for a few months after the fact.

FACTUAL ANSWERS ONLY PLEASE. No opinions or judgments
Thank you
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Old 08-18-2018, 02:22 PM
 
5,046 posts, read 3,330,095 times
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Quote:
Originally Posted by Amisi View Post
Someone has a credit card and makes you an authorized user (and you have your own card under their account). Now, this person decides to stop paying the bill. Does this also affect the authorized user's credit? The authorized user did not find out for a few months after the fact.

FACTUAL ANSWERS ONLY PLEASE. No opinions or judgments
Thank you

They use your social security number?



Most credit cards don't hold authorized users responsible. However, that doesn't mean they don't report to the credit bureaus.
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Old 08-18-2018, 05:00 PM
 
18,258 posts, read 11,653,926 times
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Quote:
Originally Posted by Amisi View Post
Someone has a credit card and makes you an authorized user (and you have your own card under their account). Now, this person decides to stop paying the bill. Does this also affect the authorized user's credit? The authorized user did not find out for a few months after the fact.

FACTUAL ANSWERS ONLY PLEASE. No opinions or judgments
Thank you

Authorized user means nothing more than legal holder of account has given you permission to use; it carries no other legal liabilities. Things remain as they were previously; person who opened the account, signed required documents, provided SSN and so forth incurs all benefits and or liabilities.


https://www.creditkarma.com/credit-c...r-credit-card/


If legal account holder stops paying CC bills both him/her self and authorized user(s) will see their credit cards likely shut down (temporarily or permanently). But the CC company will take action against the only person they legally can; one who opened account.


Authorized user is how many wives for decades obtained a credit card. The husband applied and opened the account, and it was under his name. He could add an "authorized user" (the wife) who got a card in her name but the account was still legally the husband's. If the couple divorced wife soon found she had *nothing* in terms of a credit record. This is because regardless of who paid the bills, account legally belonged to the husband. He of course got screwed if the wife (or now ex) ran up huge bills.


Solution was and still is to open a joint CC account where two persons are jointly and severely responsible. https://www.bankrate.com/finance/cre...ccounts-1.aspx
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Old 08-18-2018, 05:05 PM
 
Location: USA
128 posts, read 65,696 times
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Quote:
Originally Posted by Amisi View Post
Someone has a credit card and makes you an authorized user (and you have your own card under their account). Now, this person decides to stop paying the bill. Does this also affect the authorized user's credit? The authorized user did not find out for a few months after the fact.

FACTUAL ANSWERS ONLY PLEASE. No opinions or judgments
Thank you
YES! Your score will go down.
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Old 08-18-2018, 05:13 PM
 
Location: Honolulu, HI
4,575 posts, read 1,141,729 times
Reputation: 6538
Quote:
Originally Posted by Amisi View Post
Someone has a credit card and makes you an authorized user (and you have your own card under their account). Now, this person decides to stop paying the bill. Does this also affect the authorized user's credit? The authorized user did not find out for a few months after the fact.

FACTUAL ANSWERS ONLY PLEASE. No opinions or judgments
Thank you
Both the primary user and authorized user credit score will go down due to not paying the bill.

The authorize user should remove their name from the account before it gets any worse
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Old 08-19-2018, 05:39 PM
 
18,258 posts, read 11,653,926 times
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Quote:
Originally Posted by Rocko20 View Post
Both the primary user and authorized user credit score will go down due to not paying the bill.

The authorize user should remove their name from the account before it gets any worse
For the last GD time *No*, this is not totally true. People need to research things and not just say something for sake of doing so, giving out totally inaccurate information.


An authorized user is just that; someone allowed to use a credit/charge account not their own. The account isn't in their name, nor did or do they go through any sort of vetting process. Responsibility for account in nearly all cases remains with named legal account holder.


While some credit or charge card companies will report authorized users account activity to credit agencies and or whatever, that is *NOT* universal nor is it legally required.
https://www.nerdwallet.com/blog/fina...-credit-score/


By federal and state laws the person responsible for CC accounts is the person(s) who made the application. There is reason for joint credit card accounts, mortgages, loans and so forth. There is where more than one person is held liable for debts/actions of another.
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