Should You Add Your Partner As An Authorized User?

Westend61/Getty Images: Illustration by Issiah Davis/Bankrate

You and your partner probably share a lot of financial responsibilities. Maybe you have a joint mortgage or are splitting rent on a shared apartment. You and your partner may also be working together to cover the costs of groceries, childcare or car payments, not to mention the everyday expenses that come up when you share a life with someone you love.

Should you and your partner share a line of credit? While few credit cards allow joint cardholders, many credit issuers allow you to add your partner as an authorized user on your credit card. That way, your partner can use your line of credit to make purchases — and, in some cases, use your credit history to build their credit score.

Here are some of the pros and cons of being an authorized user, as well as a couple of the best credit cards to consider for adding a user.

What are the benefits of adding your partner as an authorized user?

Adding your partner as an authorized user on your credit card allows you and your partner to share a line of credit, but those aren’t the only benefits that come with an authorized user relationship.

Building good credit

One of the biggest benefits of being an authorized user is the opportunity to build credit quickly. When you add your partner to a credit card that reports authorized users to the major credit bureaus, all of your positive credit activity — on-time payments, balance management and more — becomes part of your partner’s credit history as well.

And you don’t have to be married to add your partner as an authorized user. Bankrate writer Brendan Dyer added his girlfriend as an authorized user on his American Express® Gold Card. “She was hesitant at first because it seemed like a big step tying even just one part of your finances to your partner’s, but she was shopping for cars at the time, and she was only getting pre-approved for loans with fairly high interest rates,” Dyer recalls. “The banks were citing her limited credit history and imperfect score. Since being added as an authorized user on my card, her credit score has gone up and we’re hoping she’ll see much lower rates with her next pre-approval.”

Building good credit is so important that many parents add their children as authorized users on their accounts, just to give their kids a head start. If your partner’s credit could use a boost, adding them as an authorized user could be one of the best ways to help them earn a good credit score.

Earning rewards

Once your partner is an authorized user on your credit card, their purchases can earn credit card rewards — and you can use those rewards to pay off statement balances, book flights, cover travel expenses and more.

Sharing a line of credit with your partner also helps you maximize your credit card rewards. If every household purchase goes on a top travel credit card, for example, the two of you can work together to earn enough points to cover the cost of your next trip.

Balancing the budget

Adding your partner as an authorized user on your credit card also helps you keep your household budget balanced. When all your grocery spending goes on the same card, for example, it becomes easier to determine how much you’ve spent on groceries that month (and whether you can afford an evening at your favorite restaurant).

Cons of adding your partner as an authorized user

While there are many benefits to adding your partner as an authorized user on your credit card, there are also two big disadvantages to consider.

Full financial responsibility

As the primary cardholder, you have full financial responsibility for all charges made on the credit card. This means that if your partner spends more than you can afford to pay off, you’ll be the one responsible for the credit card debt.

Some credit cards allow you to set authorized user spending limits, which can help prevent your partner from accidentally maxing out your credit card. Either way, it’s important to be aware of what your partner is purchasing and to have a plan if they overspend.

Potential to damage credit score

When you and your partner share a line of credit, you both have the potential to damage each other’s credit score. If you make a late payment, for example, your partner’s credit could suffer. Some credit issuers solve this problem by only reporting positive credit activity on an authorized user account. That way, a negative action on your part won’t hurt your partner — but it won’t help them build their credit, either.

Your partner also has the potential to damage your credit. Whether they max out your credit card or simply make a purchase you can’t afford to pay off, your partner could increase your credit utilization ratio and lower your credit score.

Credit cards that offer benefits for authorized users

While authorized users can benefit from nearly any credit card, a few cards offer specific benefits just for authorized users. Here are two of our top picks for rewards credit cards that have benefits for authorized users:

The bottom line

Adding your partner as an authorized user on your credit card can help them build credit, and sharing a line of credit can help you both balance the household budget. As long as you both use your shared credit card responsibly, you’ll be able to take advantage of all the benefits that come with having an authorized user on a card — without worrying about any of the drawbacks that come with missed payments or overspending.