Adding Authorized Users to Your Credit Card

Ever thought about adding your child as an authorized user to your credit card? Or have you ever just wanted to help a friend or family member who is dealing with bad credit? Whatever your reasons may be, adding someone else to your credit card is a pretty easy and straightforward process. And the best part? You can even get paid to do it and it is totally legal.

Adding an authorized user to your account can help you make some extra cash – $400 to $2,000 plus per month, depending on your cards. The authorized user do not receive a credit card to use, it is simply a means to boost their credit score. A few things to consider:

• Quite simply, it’s a win-win for all parties involved. By adding an authorized user by selling your tradeline to a reputable tradeline company, this company will in turn pay you for your tradeline. The tradeline company already has people who are looking to become an authorized user by purchasing a tradeline. Once a person purchases a tradeline, they win because they’ll have the benefit of your credit history being placed on their credit report to boost their credit score, thereby increasing their chances of being approved for any type of loan or line of credit they apply for.

• Authorized users have certain account restrictions. Authorized users when added via a tradeline company are restricted from certain account activities. For example, authorized users don’t have access to your actual credit card and they won’t receive one either. As a result, they cannot carry out account maintenance activities like making purchases, adding other users, changing the contact information on the account, etc.

• Authorized user have no legal liability to the account. Authorized users are not legally responsible for any purchases charged to that account. In the case of a sold tradeline, you’ll still be the only person able to make a purchase anyway, so there’s nothing to worry about here.

• Authorized users do not need a credit history. The credit card company will not run a credit check on the authorized user when you add them to your credit card. This is why becoming an authorized user is a great option for people who have a bad credit history or no credit history at all.

Adding a New User to Your Credit Card

Now that you know all the basics about authorized users and what adding them to your credit card could mean for you, here are a few tips on how to add authorized users to your credit card.

• The first step to adding an authorized user to your credit card is gathering all the information. In the case where you are selling your tradeline and adding an authorized user, the tradeline company will provide you with all of the information you need to add an authorized user. You’ll be provided basic information such as the person’s name, their date of birth, their social security number and some other information depending on what your credit card company requires.

• The next step would to add the authorized user. For some credit cards, this can be quickly and easily done online if you have your account setup online. However, some other credit card companies might need you to call them. Whatever your credit card company requires, it usually is easy, meaning the process is fairly quick. In fact, if you can do it online, all you’ll have to do is log into your online account and search for the right menu option. The menu option usually says something like “authorized users” or “add another user”.

• Once you click on the link, the next step would be providing all the information of the user you want to add – the information the tradeline company provided you with. After doing that, click on the submit button.

If there was ever a way to do some good for someone else while also benefiting financially, adding an authorized user is by far the absolute best way to do it. Since the authorized user will not have any access whatsoever to a credit card, account information, or know who you are, in addition to the fact that you’ll continue using your credit card and making payments on time anyway; you may as well go ahead and get paid for it. It’s the fastest and easiest way to passively add several hundred dollars a month to thousands of dollars a month in income.

The great thing about this is that when you sell your tradeline for the purposes of adding an authorized user simply to help the other person boost their credit score, all of the hard work has been done for you. Once your tradeline has been purchased, you’ll receive either a phone call or an email providing you with the information you’ll need to add the authorized user to your credit card. That user has no access, but you’ll get paid by the tradeline company for adding that person as an authorized user.

Credit Tradelines

There are several ways to boost, repair or simply improve the overall quality of your credit score. More traditional means include taking out small personal loans and paying them back over time. Also, you can take out a secured credit card and slowly repair your credit if you have a lower credit score.

However, the issue with these is that if you have a damaged or low credit score, it can be difficult to obtain a credit card or installment loan. An effective way to boost your credit score and make obtaining a loan easier is utilizing a credit tradeline.

A credit tradeline allows you to become an authorized user on a line of credit, giving you the ability to reap the benefits of that line of credit. With that comes a variety of options and we’ll go into greater detail on how a tradeline works.

How it Works

As stated, using a tradeline will allow you to become an authorized user on an established line of credit. What that means for you is when that credit card reports to the credit bureaus, your name will be associated with that line of credit and the full history of the tradeline will show on your report.

However, when you are an authorized user for the purpose of improving your credit, you do not have access to that line of credit, you do not have the ability to alter any information and you will not see whose line of credit it is. You simply reap the benefits of a well-established, healthy line of credit.

Age of Credit

When searching for the right tradeline, you will notice there are lines of credit that have been around for a year, all the way up to several decades. The age of the line of credit will dictate the premium you pay for that tradeline, as well as how it will boost your credit score.

An aged line of credit will benefit your score by adding payment and age history, and will show lenders you can maintain debt and use it in a responsible manner.

Size of Credit

The other part of the credit tradeline to consider is the size of the credit limit. If you go for a tradeline with a higher line of credit and small balance, your credit utilization can be lowered greatly. Same can be said for a smaller line of credit, it simply depends on your current credit situation.

For example, if you have $10,000 worth of credit and you are using $9,000 of it, you have a 90% utilization rate. However, if you add a credit line with a line of credit of $20,000 and zero balance, you are now reporting $30,000 worth of credit, utilizing $9,000 worth, thus lowering your percentage to 30%.

With these three details, you’ll be able to find the right tradeline for you. Keep in mind, the more established a line of credit, combined with a higher limit, the greater premium you’ll pay. By paying that higher premium you’ll likely see a spike to your credit score.

Keep Your Credit Score High in Retirement

Most people look forward to retiring with gusto. It’s a time to sit back and relax after decades of hard work. It’s time to enjoy the fruits of your labor, but don’t get lax about your credit. Keeping your credit score high in retirement is just as important now as ever. Here are some ways you can keep that credit in good standing as you enter your golden years.

Pay Down Your Cards

Do you pay more than the minimum due each month? Paying more than the minimum due will dramatically lower the length of time required to pay off the balance and it will lower the amount of money that goes to the interest on the account. It may also help your credit score by lowering the credit to debt ratio. The little things do make a difference.

Keep Accounts Open

Closing a credit card you don’t use may affect your debt to credit ratio, and as a result your credit report history and score. This means when you have a credit card with an open balance available it increases the amount of credit you have available.

Fix Errors in Your Credit Report

The credit reporting system is not perfect and because of errors, inaccuracies and mistakes, many consumers do not have accurate credit scores and reports and that affects the way lenders and credit issuers review your credit risk. If this is you, a bad credit report will cost you money. You can fix your credit, and there are consumer laws in place to protect you.

Fixing your credit is more than just about fixing your credit score. It is about repairing the errors so that your credit is a true and accurate reflection of your credit history. Every error, outdated and incomplete account history should be carefully reviewed, verified and corrected. It requires diligence and thoroughness in order to get the job done correctly. Inaccurate, unverifiable and incomplete information must be deleted, removed, updated or re-characterized by the credit bureaus and creditors.

Good Credit

Maintaining good credit after retirement provides you with the opportunity to refinance your home for travel or perhaps you want to start that business you always dreamed of, you’ll need funds to get it off the ground. Maybe you want to downsize to a smaller home and lower mortgage payments. Good credit is your key to the future and continued financial freedom.