Do Comenity Credit Card Authorized Users Build Credit? (2024)

FAQs

Do Comenity Credit Card Authorized Users Build Credit? ›

No, Comenity Bank credit card authorized users do not build credit. The issuer only collects credit reporting information for the primary cardholder.

Being added as an authorized user on another person's card may help you establish a credit history or build your credit. Yet cardholders and authorized users' on-time, late or missed payments will be added to both parties' credit reports, so it's important that cardholders and authorized users see eye to eye.

A 2018 Credit Sesame survey found that people with bad credit who were added as authorized users saw a 24% increase in their FICO Score in 6 months and a 30% increase in 12 months. The lower your starting credit score, the more you benefit from being an authorized user.

As with any new credit, it typically takes a month or two after you've been named an authorized user for the account to appear on your credit reports. As soon as that happens, the card's shared payment history and its age of accounts will be added to your own and will be reflected in your credit scores.

Being an authorized user can help you build credit—increasing your credit age, overall credit limit and history of on-time payments—but creditors will also want to see that you're up to the task of repaying the money you borrow.

Adding an authorized user to your Capital One account helps you see household purchases in one place. And it could help a loved one establish credit. It's important to remember that the only way to build credit with a credit card is with responsible use.

While authorized users receive their own credit card, they do not have all the same permissions as the primary account holder. For example, authorized users typically cannot redeem rewards, request a credit line increase, close the account or add another authorized user.

Will removing an authorized user hurt their credit? It depends on the situation. If the card in question has been well maintained with on-time payments and low credit utilization, removing the authorized user from the account will effectively erase that positive payment history from their credit report.

If your credit reports show an authorized user account with a high balance relative to its credit limit, it could be bad for your credit scores even if all of the payments are on time. It's generally good to aim for a credit utilization under 30%.

Sharing a credit card can help the partner with the lower credit score start to build their credit and raise their score. There are two options for sharing a card, Kuderna explains. You can open a joint card or have the spouse with the lower credit score become an authorized user on the other's credit card.

Can an authorized user have bad credit? ›

However, if you have poor credit history, being an authorized user on someone's credit card will have less of an effect because you already have a lengthy credit history. Mackenzie Stewart, a personal finance blogger at Life@23k, was an authorized user on both her parent's credit cards.

If you are removing yourself as an authorized user

Step 1: Call your credit card company's customer service number (found on the back of your card) and ask to be removed as an authorized user on the account. Depending on the issuer, you may be able to do this through your online account or via the company's mobile app.

Being an authorized user on a credit card could affect your credit positively if the account holder makes on-time payments and keeps the credit utilization rate low. If they don't, your credit could take a hit.

If you're just starting out and have a thin credit file, becoming an authorized user is likely to benefit you more in terms of payment history than it would if you've been using credit longer and have setbacks to overcome. But lowering credit utilization can have a significant impact for newbies or rebuilders.

Being added as an authorized user is just like applying for a new credit card but without the hard inquiry. Some companies, like Amex have even been known to backdate your card to the original member's 'member since date'.

Sharing a credit card can help the partner with the lower credit score start to build their credit and raise their score. There are two options for sharing a card, Kuderna explains. You can open a joint card or have the spouse with the lower credit score become an authorized user on the other's credit card.

Will adding my child as an authorized user help his or her credit? Yes, adding children as authorized users can help their credit scores. It's up to the primary cardholder to maintain a healthy credit score so the authorized users can reap the benefits.

Adding an authorized user to your credit card account alone shouldn't have a negative impact on your credit. But keep in mind that if that person uses your credit in a way that hurts your financial situation, negative credit impact could follow.

On the other hand, if the account in question has had frequent late payments or carries a high credit utilization, removing an authorized user (or removing yourself as an authorized user) could give a boost to your credit scores.