Should You Add Your Partner or Spouse as an Authorized User?

Couples tend to share many aspects of their lives, including their finances. In many cases, having two people working toward the same financial goal can be more beneficial than doing it alone.

Whether you’re married to your partner or just dating, most credit cards allow you to give your significant other access to your line of credit by adding them as an authorized user to your account.

However, it’s important to understand when this is a good idea and when it could be potentially disastrous.

Before you decide whether or not to add your partner or spouse to your credit account as an authorized user, you should understand the difference between an authorized user and a joint account holder, the access that an authorized user has to your account and how adding an authorized user could affect your credit score.

Authorized User vs. Joint Account Holder

An authorized user and a joint account holder differ in a few significant ways. Making your partner or spouse an authorized user allows them to use your credit account with their own card. However, that person will have no responsibility for paying the bills and usually can’t make any changes to the account.

On the other hand, a joint account holder has equal responsibility for paying the bills on your account and has full access to make account changes. However, credit issuers that allow joint account holders are few and far between these days. So, if you want to share a line of credit with your significant other, adding them as authorized users might be your best option.

The Pros of Adding an Authorized User

Adding your significant other to your credit account as an authorized user can help them build credit while helping you earn more rewards in the process. However, you should be aware that doing so can come with some significant risks.

Help Your Partner Build Credit

Once you add your significant other as an authorized user on your account, it will show up on their credit history. So, assuming your credit history and credit score are better than your significant other’s, adding them as an authorized user should help boost their credit score.

On the flip side, your partner’s existing credit history will have no effect on your own credit history once you add them as an authorized user. So, if you have much better credit than your partner or spouse, it may be a good idea to add them as an authorized user.

Earn More Rewards

If you have a rewards credit card and add your significant other as an authorized user, all of their spending on that card will earn rewards just like yours would.

So, if you have a premium credit card that earns rewards quickly (like the Capital One Venture X Rewards Credit Card or the Chase Sapphire Preferred® Card) that your significant other can’t qualify for, it may make sense to add them as an authorized user so they can earn rewards faster than they would with a lower-tier credit card.

However, keep in mind that your partner or spouse will have no control over how the rewards they earn are used.

Convenience When Paying

In the interest of convenience, it may be helpful to have your spending and your partner’s spending all on one bill. If you add your partner as an authorized user, you can both charge to the same credit account and have all of your spending on one statement. This can be especially helpful for tracking and budgeting your monthly expenses.

You Retain Control

As the primary account holder, there are ways to control the spending of authorized users that you add to your account. First of all, if your authorized user doesn’t have a physical credit card linked to your account, they can’t spend any money on it at all.

Some credit card issuers allow you to choose whether or not you want to get a physical card for your authorized user while others will automatically send you a card for that person. If they automatically send you a card for your authorized user, you can simply choose not to pass it on to them once it arrives in the mail.

The Cons of Adding an Authorized User

While all of the benefits listed above could make adding an authorized user a smart move for you and your partner’s joint financial situation, this can also be an extremely risky move if you don’t fully trust your significant other.

You’re Liable for Their Spending

No matter whether the primary account holder or the authorized user is doing the spending, the primary account holder is always responsible for paying the bills. So, if your partner has a physical card and doesn’t have a spending limit, they could potentially run up a huge bill and then leave you high and dry.

Even if no foul play is involved, some people have a tendency to spend beyond their means (especially when it isn’t their money at stake). So, you’ll still be responsible for any impulsive and irresponsible shopping sprees that your authorized user chooses to go on.

It Could Hurt Your Credit Score

Even if your spouse or partner is spending responsibly, having two people charging to your account instead of one will increase the amount of money owed on the account. This could end up raising your credit utilization ratio (the percentage of your credit limit that is being used), which could result in a temporary drop in your credit score.

Most experts recommend keeping your credit utilization ratio below 30% at all times. However, this is more difficult to do if you have two people’s expenses being charged to your account instead of one.

Matters get even worse if your spouse or partner is spending more money on your account than you’re able to pay back. This could lead to unpaid credit balances and a corresponding drop in your credit score.

It Could Hurt Their Credit Score

Your authorized user’s credit score is also at risk of taking a hit as a result of your bad spending habits. Since the credit account will show up on their credit history once they become an authorized user, any negative activity on your part (including missing or late payments or high credit utilization ratios) will affect their credit score as well as yours.

If you end up dropping your partner or spouse as an authorized user on your account, that could also negatively affect their credit score (similar to if they were to close one of their own lines of credit).

It Could Impact Your Partner or Significant Other’s Opportunity to Open a Card

Sometimes, when applying for a new card banks will view an authorized user as having that account. This could mean that your 5/24 count may be higher than you anticipated, resulting in being declined for a card. Often times, this is easily reversible by explaining they are an authorized user, or by removing them as an authorized user before applying. But it can create additional work.

The Bottom Line

The first prerequisite for adding your significant other as an authorized user on your credit account is that you both trust each other 100%. Giving an untrustworthy partner access to a line of credit that you’re entirely responsible for could leave you in financial ruin.

However, if you can trust your partner (or control their spending), adding them as an authorized user to your account can be a great tool for boosting their credit and racking up more rewards when used responsibly.