Credit cards are convenient, but when more than one person’s name is tied to the same account, things can get confusing fast. Are you on the hook for someone else’s spending? Will their habits drag down your credit score? And what happens if the account holder dies?

The answers depend on whether you’re an authorized user or a joint account holder. These two terms may sound similar, but the financial consequences couldn’t be more different. Let’s break it down so you know exactly where you stand.

Authorized User: Easy Access, No Legal Obligation

Think of being an authorized user like having a “guest pass” at the gym. You get to use the facilities (the credit card), but you don’t pay the membership fees (the debt).

• What it means → An authorized user is added to someone else’s credit card account.
• Who’s responsible → The primary account holder is solely responsible for all charges and payments.
• Credit score impact → The account’s payment history and credit utilization can appear on your credit report, helping (or hurting) your score.

Example: A parent adds their teenager as an authorized user to build credit. If the teen racks up $500 in charges, the parent must pay the bill. The teen has no legal responsibility.

When it’s helpful

• Parents teaching kids credit responsibility.
• Spouses building credit together without sharing full liability.
• Someone with little or no credit history trying to establish a score.

Risks to keep in mind

If the account holder misses payments, that history could show up on your credit report as an authorized user. You’re not liable for the debt, but your score may still take a hit.

Joint Account Holder: Equal Partners, Equal Responsibility

Being a joint account holder is like being co-owner of a house. Both names are on the deed, and both parties are equally responsible — even if one person stops paying.

• What it means → Both individuals apply for and own the credit card account together.
• Who’s responsible → Each account holder is 100% liable for the balance.
• Credit score impact → Activity is reported to both credit files. Missed payments hurt both equally.

Example: A married couple opens a joint account. One spouse makes most of the charges. Even if the other spouse never swipes the card, they’re still legally responsible for the balance.

When it’s helpful

• Couples who want equal access and responsibility.
• Business partners sharing expenses.
• Situations where both parties trust each other fully.

Risks to keep in mind

• If one person overspends, the other is stuck with the bill.
• Closing or removing yourself isn’t easy — you usually need to pay off the balance first.

Authorized User vs. Joint Account Holder: Key Differences

Why this distinction matters

Divorce or breakups → If you’re a joint account holder, you can’t just walk away. If you’re an authorized user, you can be removed.

Death of the primary account holder → Authorized users typically lose access immediately, but aren’t liable for the debt. Joint account holders remain responsible.

Credit building → Being an authorized user can be a credit boost, but joint accounts carry much greater long-term financial weight.

Action Steps

1. Check your status → Look at your credit card agreement to confirm whether you’re an authorized user or a joint holder.
2. Review your credit report → Make sure accounts are reported correctly.
3. Communicate clearly → If you’re sharing credit with someone, agree on spending rules and payment responsibilities.
4. Protect yourself → If you no longer want to share responsibility, take steps to remove yourself or close the joint account.

📌 Related Reads from Financial Middle Class:

• Who Is Really Responsible for a Loved One’s Debt? Myths vs. Facts
• Community Property vs. Common Law States: How Marriage Impacts Debt
• Debt Collectors and Your Rights: How to Handle Calls After a Death

Call to Action

Knowing whether you’re an authorized user or a joint account holder can save you from expensive mistakes. Review your accounts today — and don’t miss the next article in this series to learn how marriage laws can impact debt responsibility.