December 2nd, 2013
How Does Being an Authorized User Affect My Credit Score?
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In this Credit Karma FAQ video, Bethy and Ezra (and some special guests!) tackle another commonly asked question in our Credit Advice Center: “How Does Being an Authorized User Affect My Credit Score?” In short, it can help it… but it can also hurt it. Check out the video to learn more!
An authorized user is someone who “piggybacks” off someone else’s credit, usually a friend or relative. If someone wants to build his credit and isn’t eligible for favorable rates on his own, he can find someone he trusts and who he knows has good financial habits. Then, he can ask that person if they’ll add him as an authorized user to one of their accounts.
If both users pay the bills on time and have good credit utilization, both scores could rise. But if both rack up debt that can’t be paid off, both scores could suffer.
Disclaimer: This video provides general information about credit and is not intended to advise about your personal financial situation. Consult a financial, legal, or other professional adviser. In other words, someone who’s not a video.
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