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English | español Building credit without a Social Security number can be quite difficult, but it isn't impossible. Credit card issuers can't require you to provide a Social Security number. Instead, many credit card issuers ask for an individual taxpayer identification number (ITIN). An ITIN is a nine-digit identifier that acts like a Social Security number. For information on how to apply for an ITIN, visit General ITIN information on the IRS website. The tricky thing is that not all credit card companies allow the use of an ITIN to apply for a credit card. This means you will need to do some research to learn which companies allow you to use your ITIN. Credit card issuers that accept ITIN numbers may deny your application if you don't have a credit history. So, go ahead and apply for a regular credit card with your ITIN even if you lack a credit history. But if you are denied, you should next apply for a secured credit card to establish that history. Qualifying for a secured credit card is easier than for a regular card because you put down a deposit as collateral. This reduces risk for the card company because it can collect money from your initial deposit if you don't pay your balance on time. The credit limit on secured cards usually equals the amount of your deposit. To keep your secured card (and credit!) in good standing, always pay your balance off on time and in full. Once you have a good payment record on your secured credit card, you may qualify for a regular, unsecured credit card. Sarah Butler, Extension educator in financial empowerment Reviewed by Sharon Powell, Extension educator in family resiliency Reviewed in 2020 Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations. There are many ways to build your credit when you’re starting from scratch or trying to bounce back from past financial mistakes. One strategy that might help you is becoming an authorized user on someone else’s credit card account. Research shows that nearly half of authorized users typically have a credit score of 680 or higher—a score that’s considered good according to Experian. Although the authorized user strategy works well for many consumers, it’s not always as straightforward as it seems. Piggybacking on someone else’s credit card might help you build credit, but sometimes it won’t help you at all. And in certain unfortunate situations, being an authorized user could actually backfire and send your credit scores sliding downward instead. What Is an Authorized User?Being an authorized user means you have a credit card in your name that’s attached to someone else’s account. Because you’re not the primary account holder, you’re generally not responsible for the charges made on the card—at least not in the eyes of the card issuer. As an authorized user, you can use a credit card to make purchases. However, you do not have the authority to make changes to the account. For example, you can’t request a credit limit increase or add other authorized users. That power lies with the primary account holder. Be careful not to confuse authorized user status with having a joint credit card account with someone else. With a joint credit card, you apply for the account alongside another person like a spouse or parent. If the card issuer approves your application, but you and your co-borrower are equally liable for any charges made to the account. How To Become an Authorized UserThe process of becoming an authorized user on someone else’s account is relatively easy. It starts with your family member or friend reaching out to their credit card company over the phone or online to make the request. From there, your loved one gives the card issuer your name and some personal information like your date of birth and Social Security number. Once the card issuer approves the request, it will mail a credit card in your name to the primary account holder. At that point, it’s up to your loved one to decide whether to give you the credit card to use or hang onto it for safekeeping. Parents, for example, might want to hold on to the card and only give it to their son or daughter to use at specific times. With most credit cards, adding an authorized user is free. Yet some card issuers may charge fees to include authorized users on your account. (This practice is more common with premium rewards credit cards.) Adding an authorized user to The Platinum Card® from American Express will cost you $175 per year (for up to three authorized card holders – Terms Apply. See rates & fees). With the Chase Sapphire Reserve®, you’ll pay $75 per year for each authorized user you add to your account. Featured Partner OffersHow Does Becoming an Authorized User Affect Your Credit?Being an authorized user on someone else’s account could affect your credit. And although there’s a solid chance your credit rating could benefit from becoming an authorized user, whether it ultimately does or doesn’t is largely out of your control. Below are three ways being an authorized user might impact your credit. 1. Being an Authorized User Could Help You Build CreditLet’s take a look at the best-case scenario first. When a loved one adds you as an authorized user onto an existing account, the action might give your credit scores a boost. In order for an authorized user account to potentially help your credit, three things need to happen.
Asking your loved one to add you to an older credit card account could potentially give your credit scores an extra boost. Older accounts tend to be better for your credit scores thanks to the way scoring models work. 2. Being an Authorized User Might Not Impact Your CreditCredit scoring models only consider information that’s currently on your credit report—nothing more and nothing less. So, in order for a credit card to affect your scores, it must show up on your credit reports with Equifax, TransUnion and Experian. If a card issuer doesn’t report authorized user activity to the credit bureaus, being added to the account won’t impact your credit in any way. Thankfully, many card issuers do report authorized user activity to the major credit bureaus. The primary account holder can ask about the company’s credit reporting policy when he or she calls to add you to the account. 3. Being an Authorized User Could Hurt Your CreditThere are a few situations where piggybacking on a loved one’s credit card account might hurt you. Your credit score could be in trouble if the primary cardholder:
Note: Experian states that it does not include negative payment history on the credit reports of authorized users. So, your Experian-based credit score might be fine even if the primary account holder pays late. Equifax and TransUnion, however, both warn that negative payment history on authorized user accounts could hurt both you and the primary account holder. Remember, as an authorized user you’re not legally liable for the debt. So, if the primary account holder pays late or runs up a big balance relative to his or her credit limit, you have the option to be removed from the account. A phone call or online request to the credit card issuer is often all it takes to remove yourself from an account. Some card issuers, however, only allow the primary account holder to make this request. Once you’re no longer an authorized user, the credit card company should ask the credit bureaus to delete the account from your credit reports. However, if the account continues to show up on your reports after you’re removed from it, you can also dispute the mistake with the credit bureaus on your end. Risks of Being an Authorized UserIf you’re comfortable asking someone you trust to do you a favor and make you an authorized user, there’s minimal risk involved with giving the authorized user strategy a try. Becoming an authorized user on a well-managed credit card could help you build good credit, even if you’re starting from scratch. And in the event something goes wrong, you or your loved one have the option to call the card issuer and remove the authorized user from the account. The primary account holder, on the other hand, will be accepting more risk than the authorized user. He or she will be legally on the hook for any charges an authorized user makes on the credit card account. If your loved one is worried about accepting this responsibility, he or she could opt to keep the physical card instead of handing it over to you when it arrives. Alternatively, some credit card companies let cardholders set individual spending limits for authorized users. Finally, remember that having a friend or family member add you to an existing credit card is just one step in a credit-building journey. It’s still important to establish credit on your own. As you open accounts and develop good credit management habits yourself, there’s a good chance your credit scores will continue to climb. Find The Best Credit Cards For 2022No single credit card is the best option for every family, every purchase or every budget. We've picked the best credit cards in a way designed to be the most helpful to the widest variety of readers. Bottom LineAuthorized usership is a great and relatively safe way to build credit with the help of a more creditworthy trusted family member or friend. Becoming an authorized user comes with the same responsibilities of card ownership, but can be rewarding in terms of both opportunity to strengthen credit and access to cards with better rewards and benefits. To view rates and fees for The Platinum Card® from American Express please visit this page. Frequently Asked Questions (FAQs)How long does it take for an authorized user account to show on a credit report?An authorized user’s credit report will show a new account by the end of the next billing cycle. Typically, an authorized user’s account will report within 30 days of account opening. How much will my credit score go up if I become an authorized user?How your credit score is affected by your use of an authorized user account will depend on a number of factors related to how credit is scored. For example, if you fail to make payments on time, your score will drop. If you use too much of your available credit, your score can also suffer. With responsible use, your credit score can steadily improve and your credit history will strengthen as time goes on. Building a strong credit profile takes time—often years—so remain patient and always make payments on time. Why did my credit score drop when I was added as an authorized user?A few factors may cause a drop in a credit score following a new account opening. An issuer typically makes a hard inquiry into your credit when evaluating you for a new account, so if you applied for cards on your own before deciding to become an authorized user, this may have caused your score to temporarily drop a few points. If you have applied for too many accounts recently, your score may also drop. If you have many accounts but no variety—for instance, only credit card accounts and no other types of accounts, this may also affect your credit score negatively. Finally, if you immediately make large purchases with your card and your credit utilization rises too high, your credit may also suffer. Can an authorized user be denied?Yes, authorized users can be denied. Typically, the reasons are more straightforward than with a typical credit card application, however. Reasons for denial might include age restrictions or limits on the number of authorized users instead of the creditworthiness of the authorized user—typically, a hard credit pull is not made when an authorized user is added to a card. Will adding my child as an authorized user help his credit?Adding a child to a credit card account as an authorized user is a well-used and effective strategy to help a teenager establish and begin to build credit several years before they will actually need to use it. This can help set young consumers up for financial and credit success earlier. Only responsible teenagers should have access to a credit card, as a primary cardholder is ultimately responsible for an authorized user’s use of the card. How much will my credit score go up if I become an authorized user?Being added as an authorized user will not have a significant impact on your credit score, because you're not responsible for paying the bills.
How long does it take for authorized user to show on credit report?How Long Does It Take for an Authorized User to Show up on a Credit Report? If this information is reported, it will typically show up on your credit report in around thirty days. However, some lenders do not report authorized users to credit bureaus, in which case the authorized user may not appear at all.
Can you build your own credit as an authorized user?You don't need good credit (or any credit) to become an authorized user, but if the bank or issuer reports your card's full on-time payment history to the credit bureaus, you can begin to build a positive credit history.
Does Capital One authorized user need SSN?Before adding an authorized user to your Capital One card, you'll need some information about the user, like their Social Security number and date of birth.
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How does an authorized user build credit without social security number
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