If you’ve added an authorized user to your credit card, you’ve given them the power to spend on your account. But remember, their charges are ultimately your responsibility. If you’re considering removing an authorized user, whether due to a change in circumstances or a simple desire for more control, this guide will walk you through the decision-making process and the steps involved in taking them off your account.
What is an authorized user on a credit card?
A credit card authorized user is someone who is added to another person’s credit card account.
“An authorized user receives a card of their own to make purchases, but they aren’t liable for payments,” says Rod Griffin, senior director of consumer education and advocacy with Experian. They can make purchases and sometimes have access to benefits like rewards programs, but they are not legally responsible for repaying debts incurred, he says.
Bear in mind that the credit card company reports authorized user activity to the credit bureaus, and all the credit card’s characteristics will be reflected on your credit report.
“If the card’s been managed responsibly, meaning no missed payments or high levels of debt, an authorized user account has the potential to improve your credit scores,” Griffin says. But if they overspend and you can’t pay off your balances in full and on time, this could affect your credit standing.
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Why would a primary cardholder want to remove a credit card authorized user?
It’s a good idea to regularly review and manage authorized users on your credit card accounts to safeguard your credit standing. There are a few reasons a primary cardholder may want to consider removing an authorized user.
Overspending. An authorized user on your credit card can make charges but they aren’t responsible to the credit card company for paying them off. You are. “Given this, as a primary cardholder, you may need to remove an authorized user if they aren’t managing their spending responsibly,” says Griffin. “This ensures your credit will not continue to be negatively impacted by their actions.”
Shift in a relationship. If the relationship with the authorized user changes, such as ending a partnership or friendship, removing them can protect your financial interests, Griffin says.
Change of credit needs. You may consider removing an authorized user from your credit card accounts if there’s no longer a reason to keep them on your account. “For example, you might add a relative as an authorized user to your account as [a] way to help them improve their credit history. Once they’ve built a stronger history, having them as an authorized user may no longer be necessary,” notes Griffin.
➤ SEE MORE:7 rules to set for credit card authorized users
How to remove authorized user from credit card
The specific steps can vary slightly depending on your credit card issuer, but the most reliable way to remove an authorized user is by contacting your credit card company directly. In most cases, a quick phone call to their customer service line will do the trick. Most issuers also offer the convenience of managing authorized users through their mobile app or online account portal. Alternatively, if you prefer a more formal approach, sending a certified letter outlining your request can ensure your message is received and documented.
Are you required to let an authorized user know that you’re removing them from your credit card account?
You aren’t legally required to let an authorized user know you’re removing them from an account, but it may be better to tell them. “If possible, the primary account holder should communicate this to the authorized user and ask them to give back their card, destroy it and/or remove [it] from their digital wallet or reoccurring payments,” says Chris Roncari, head of product and experience at U.S. Bank.
If you want more peace of mind, Roncari says a primary account holder can request a new account number for added security after removing an authorized user to ensure that no further transactions can be made.
