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Mortgage FAQ: Will an "Authorized User" Credit Card Show Up in a Credit Report?


"WE HAVE A CREDIT CARD IN OUR NAME THAT OUR DAUGHTER IS ALSO AUTHORIZED TO USE (IN CASE OF AN EMERGENCY). SHE’S GETTING READY TO BUY HER FIRST HOME. WILL THIS CREDIT CARD SHOW UP ON HER CREDIT REPORT?"

Yes, the credit card will show up on her credit report and she will be listed as an “authorized user.” An authorized user of a credit card is someone who has access to draw on the account, but was not originally considered when the account was approved and opened. Even though she’s just an authorized user, your history on that account will also be reflected on her credit report. Depending on how good your history is with that account—payments, late payments, average balance, age of the account, etc.—that can either help your daughter’s credit or hurt it, even if she’s never used the card or used it only once or twice.

If your daughter doesn’t have much of a credit history or doesn’t have many other credit accounts in her name, her credit may be improved by being an authorized user on your account, as long as that account is in good standing. On the other hand, if you have a history of late payments or if that account is often maxed out, her credit may be harmed and she may end up with a lower credit score. For more information on how credit card accounts can affect credit scores, talk to your mortgage professional.

For more than 25 years, Omega Financial has been serving mortgage clients in Massachusetts. Our brokers have approximately 50 years in the mortgage business. You always will receive fast, courteous, and accurate information. Omega Financial, Inc. is a company duly licensed to operate in Massachusetts as a Mortgage Brokerage. We are located in the Town of Norwood, Massachusetts where we have been operating as Omega Financial Incorporated since 1988.

Licensed by the Commissioner of Banks - License No. MB2671

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