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Secondary Cardholders vs Authorized Users: What's the Difference?
July 1, 2025
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You're ready to share your credit card with your spouse, child, or business partner—but which option protects your credit score while maximizing rewards? The decision between adding an authorized user versus applying for a joint account could mean the difference between building someone's credit history safely or exposing yourself to thousands in unexpected debt.
Here's the reality: 73% of Americans have added or been added as an authorized user at some point, but only 8% understand the legal and financial implications. Meanwhile, joint credit card accounts have become increasingly rare, with most major issuers discontinuing them entirely—yet many consumers don't know why or what replaced them.
The wrong choice can tank your credit score by 100+ points if spending gets out of control, leave you legally responsible for debt you didn't create, or prevent your teenager from establishing the credit history they need for their first apartment. The right choice, however, can help build generational wealth through strategic credit access.
In this comprehensive guide, you'll discover exactly which arrangement suits your situation, how each impacts credit scores, what legal protections exist, and how to avoid the costly mistakes 41% of cardholders make when sharing access.
What Is an Authorized User?
An authorized user is someone you add to your credit card account who can make purchases using your credit line—but has zero legal responsibility to pay the bill. They receive their own physical card with their name on it, linked to your account number.
How Authorized User Status Works
When you add an authorized user:
1. The Account History Appears on Their Credit Report
The entire account history—age, payment history, credit limit, and utilization—transfers to their credit file immediately. If your card is 5 years old with perfect payment history, they inherit that positive history.
2. They Can Spend, But You're Liable
Authorized users can make purchases up to your credit limit, but you (the primary cardholder) remain 100% responsible for all payments.
3. Either Party Can Terminate Anytime
You can remove them, or they can remove themselves, with one phone call. Once removed, the account disappears from their credit report.
4. No Credit Check Required
Card issuers don't check the authorized user's credit—you can even add minors (as young as 13-15 with some issuers).
What Is a Secondary Cardholder (Joint Account Holder)?
A secondary cardholder, technically called a "joint account holder," is a co-borrower who applies for the credit card alongside you. Both parties undergo credit checks, and both are equally liable for 100% of the debt.
The Critical Distinction: Co-Borrower Status
Unlike authorized users, joint account holders:
1. Both Apply Together
You submit a joint application during the initial credit card application. Both credit scores are reviewed, and approval depends on both applicants' creditworthiness.
2. Equal Legal Responsibility
If $10,000 in charges accumulate, the card issuer can pursue either party for the full amount—not just half. This is called "joint and several liability."
3. Both Credit Reports Are Affected
Late payments, high balances, or collections impact both credit scores equally and remain for 7 years.
4. Cannot Be Removed Without Closing the Account
The only way to end a joint account arrangement is to close the card entirely.
The Disappearing Option
Here's what most consumers don't know: Major credit card issuers no longer offer joint credit card accounts.
Issuers That Discontinued Joint Accounts:
- Chase (discontinued 2018)
- American Express
- Capital One
- Citi
- Discover
- Bank of America
Who Still Offers Them:
Some regional credit unions and smaller banks offer joint accounts, but they represent less than 5% of credit card accounts issued annually.
Why The Change?
Card issuers cite complications from divorces, business dissolutions, and lawsuits where one party refused to pay. Authorized user arrangements provide 99% of the same benefits with far less legal complexity.
The Practical Reality: If you're searching for a "joint credit card" in 2026, you're likely being routed toward adding an authorized user instead—even if the issuer's marketing materials use confusing terminology.
Key Differences: Side-by-Side Comparison
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The Strategic Takeaway: For 95% of situations in 2026, authorized user status provides all the benefits with significantly less risk.
Credit Score Impact: What Really Happens
For Authorized Users
Positive Impacts:
- +30-100 Credit Score Boost: Average authorized user sees 50-point increase within 90 days (assuming positive account history)
- Instant Credit History: Inherit the account age, even if it's 10+ years old
- Improved Utilization Ratio: Your available credit increases without new inquiries
Potential Negative Impacts:
- If Primary Cardholder Has Issues: Late payments, high balances, or defaults immediately hurt your score
- Temporary Score Dip: Some scoring models count the new account as reducing average account age if you already have multiple cards
Critical Safeguard: You can remove yourself as an authorized user anytime, and the account vanishes from your credit report within 30-45 days. The negative impact doesn't linger.
For Joint Account Holders
Same Positive Impacts:
- Credit score improvements from positive account history
- Shared credit limit helps utilization ratios
Permanent Negative Impacts:
- Cannot Remove Negative History: Late payments remain on your credit report for 7 years, even after closing the account
- Hard Inquiry: Both applicants receive a hard credit inquiry (5-10 point temporary drop)
- Permanent Association: The debt remains associated with both parties indefinitely
The $50,000 Question: If your joint account partner maxes out a $30,000 credit limit and refuses to pay, the issuer can sue you for the full amount. Even if you win the lawsuit, the credit damage lasts 7 years.
Best Credit Cards for Adding Authorized Users
Not all cards are created equal when it comes to authorized user benefits. Here are the top cards in 2026:
1. Chase Sapphire Preferred® Card
[[ SINGLE_CARD * {"id": "509", "isExpanded": "false", "bestForCategoryId": "15", "bestForText": "Frequent Travelers", "headerHint": "Exceptional Travel Value"} ]]
2. American Express® Gold Card
[[ SINGLE_CARD * {"id": "118", "isExpanded": "false", "bestForCategoryId": "15", "bestForText": "Frequent Travelers", "headerHint": "Generous Travel Rewards"} ]]
3. Capital One Venture Rewards Credit Card
[[ SINGLE_CARD * {"id": "438", "isExpanded": "true", "bestForCategoryId": "52", "bestForText": "Frequent Travelers", "headerHint" : "High Travel Rewards" } ]]
4. Citi Double Cash® Card
[[ SINGLE_CARD * {"id": "580", "isExpanded": "false", "bestForCategoryId": "15", "bestForText": "Everyday Spenders", "headerHint": "No Annual Fee"} ]]
5. American Express Platinum Card®
[[ SINGLE_CARD * {"id": "106", "isExpanded": "false", "bestForCategoryId": "15", "bestForText": "Frequent Travelers", "headerHint": "Serious Points on Flights"} ]]
When to Choose Each Option
Choose Authorized User Status When:
1. Building Credit for Someone
Perfect for college students, young adults, or anyone establishing credit history without risk.
2. You Want Control
You can set spending limits (with some issuers), remove the user anytime, and retain full account management.
3. The Relationship Could Change
Romantic partners not married, adult children, or friends can be removed cleanly if circumstances change.
4. You Want to Pool Rewards
Family members can help earn bonus category rewards while you maintain control.
5. The Person Has Bad Credit
Authorized users don't need good credit—or any credit—to be added.
Choose Joint Account Holder Status When:
Reality Check: Given that major issuers no longer offer joint accounts, this option is primarily theoretical for most consumers in 2026.
Historical Use Cases (Now Addressed Through Authorized Users):
- Married couples sharing finances: Most now use authorized user status
- Business partners: Business credit cards now use employee card systems
- Applying with a co-signer: No longer commonly available
If You Can Find a Joint Account:
Consider it only if you're comfortable with permanent, equal legal liability and the relationship is exceptionally stable (such as long-term marriage).
How to Add an Authorized User (Step-by-Step)
Method 1: Online Account Management
Step 1: Log into your credit card account
Step 2: Navigate to "Account Services" or "Authorized Users"
Step 3: Click "Add Authorized User"
Step 4: Provide the authorized user's information:
- Full legal name
- Date of birth
- Social Security Number (required by most issuers)
- Mailing address (if different from yours)
Step 5: Review spending limit options (if available)
Step 6: Confirm and submit
Timeline: The authorized user card typically arrives within 7-10 business days. The account appears on their credit report within 30-60 days.
Method 2: Phone Call
Call the number on the back of your card and request to add an authorized user. Have their information ready.
Pro Tip: Some issuers allow you to set spending alerts specifically for authorized user activity. Set up notifications at $100, $500, and $1,000 to monitor usage.
Common Mistakes to Avoid
1. Not Setting Expectations
Before adding someone, discuss spending limits, payment responsibilities, and financial goals. Put it in writing if necessary.
2. Adding Someone to a Card with Negative History
Check your card's payment history and utilization before adding someone. If you have late payments or high balances, you'll hurt their credit instead of helping.
3. Forgetting About Authorized User Fees
Premium cards like the Amex Platinum charge $175 per authorized user. Calculate whether the benefits justify the cost.
4. Not Monitoring Spending
Set up transaction alerts for all authorized user purchases. Review statements weekly, not monthly.
5. Assuming You Can't Remove Them
Many people think authorized user status is permanent. It's not—removal takes one phone call and 30 days.
6. Confusing Authorized Users With Joint Accounts
When calling issuers, verify you're discussing authorized users, not joint account holders. The terminology confusion leads to mistakes.
FAQ: Authorized Users and Secondary Cardholders
Can an authorized user improve their credit score?
Yes, significantly. Authorized users inherit the primary cardholder's entire account history. If the account is old with perfect payment history and low utilization, the authorized user can see credit score increases of 30-100 points within 90 days.
Who pays the bill when there's an authorized user?
The primary cardholder is 100% responsible for all charges, regardless of who made them. Authorized users have zero legal payment obligation.
Can I remove an authorized user?
Yes, instantly. Call your card issuer or manage it online. The account disappears from the authorized user's credit report within 30-45 days. There are no penalties or fees.
Do authorized users get rewards?
It depends on the card. Most cards allow authorized users to earn rewards that accumulate in the primary cardholder's account. Some issuers allow reward transfers between the primary and authorized user.
What happens to authorized users if the primary cardholder dies?
The card is typically closed, and authorized users can no longer make purchases. However, the account history remains on the authorized user's credit report, and they face no liability for the balance.
Can authorized users see the primary cardholder's transactions?
No. Authorized users can only see transactions they made with their own card. The primary cardholder, however, can see all activity including authorized user purchases.
Do joint credit card accounts still exist?
Rarely. Major issuers (Chase, American Express, Capital One, Citi) discontinued joint accounts. Some small regional banks and credit unions still offer them, but they represent less than 5% of new accounts.
Can you add an authorized user under 18?
Yes, with most issuers. Minimum ages vary: American Express allows 13+, Chase 16+, Capital One 16+. The authorized user builds credit history from that age.
Does adding an authorized user hurt the primary cardholder's credit?
Not directly. However, if the authorized user overspends and you can't pay the balance, high utilization or late payments will hurt your credit score. Set spending alerts to prevent this.
How do I remove myself as an authorized user?
Call the card issuer (number on your card) and request removal. You can also have the primary cardholder remove you. The account disappears from your credit report within 30-45 days.
Bottom Line: Make the Strategic Choice
For 95% of situations in 2026, authorized user status provides all the benefits of sharing a credit card while protecting the primary cardholder and giving both parties flexibility. Joint accounts have largely disappeared from the credit card landscape—and for good reason.
Your decision framework:
Add someone as an authorized user if:
- You want to help them build credit safely
- You need control and flexibility
- You want to pool rewards strategically
- The relationship might change in the future
Look for the rare joint account if:
- You can find an issuer that still offers them
- You're willing to accept permanent, equal liability
- The relationship is exceptionally stable
- You understand the removal requires closing the account
Your action plan:
- Review your current credit card standing (payment history, utilization ratio)
- Discuss expectations and spending limits with the potential authorized user
- Choose the right card based on rewards and authorized user fees
- Set up spending alerts and monitoring systems
- Review activity monthly and adjust as needed
The math is simple: Strategic authorized user management can help families pool rewards worth $1,200+ annually while building credit for the next generation—all without the legal risks of joint account liability.
Ready to optimize your credit card strategy? Download Kudos to discover which of your cards offers the best authorized user benefits, monitor spending across multiple users, and unlock hidden perks you didn't know existed.
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