Have You Heard the Term Authorized User Tradelines?

Like most people, you have a few credit cards in your wallet. It could be one you use to pay for groceries and gas and another reserved for your favorite restaurant or retailer. But what about those times when there's only one card left? In this case, maybe the last resort credit card gets used when all else fails.

What Are Authorized User Tradelines?

Authorized User Tradelines are a way for people to build up their credit scores in a legal, ethical, and helpful way. An authorized user on your credit report is not financially responsible for any transactions made using the card, except for making payments on time (previously, there was no requirement to use autopay).

How Do Authorized User Tradelines Work?

Authorized User Tradelines are special accounts that allow you to be added to another person's credit card account. This can happen when you open an account for someone else or if the person who owns the account chooses to add you as an authorized user. When an authorized user is added, they'll receive a new credit line in their name and will be responsible for paying any debts on time (if applicable) and keeping up with payments as required by the agreement between them and their creditor(s). The debt reported on your credit report will reflect this information and any other outstanding balances from other accounts associated with it—specifically, any unpaid bills owed by either party involved in its creation or use would appear under "Other Accounts" instead of "Credit Cards."

How Can Authorized User Tradelines Help Your Credit Score?

Authorized users have access to your credit card account but are not responsible for making payments. The issuer (the company that issued the card) reports the activity of an authorized user to the credit bureaus. This can help boost your FICO score if you don't carry a balance on any other accounts and use it only as intended. The way authorized users work is that they're permitted by their parent or guardian (if they're under 18) to add an item, such as an ATM withdrawal, onto their bill without paying anything back in return.

Conclusion

You might wonder, "so what is an Authorized User Tradelines?". Well, it's a way for one person to authorize another person to use their credit card. This means you can use someone else's credit card without paying the full amount of the bill yourself. When you sign up for this type of account at a store like Macy's or PNC Bank, they'll ask that when you make purchases with your new account (which will have a different name than yours), they'll send off an authorization request form with each purchase asking that transaction be put through as though your name were on file there too.