Does Capital One Report an Authorized User to Credit Bureaus?

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Q

Does Capital One report authorized users to the bureaus?

A

Yes, Capital One does report authorized users to the credit bureaus. They are reported as an authorized user to Equifax, TransUnion, and Experian.

An authorized user can only be added after the credit card has been approved and not during the application process. They can be added by the primary cardholder, secondary cardholder, power of attorney, or a small business account manager. Capital One allows an authorized user to be added online or by calling customer service.

The authorized user is not legally responsible for the debt, but they can make charges on the account through a credit card issued to them by Capital One. However, the credit card statement is solely delivered to the primary cardholder or the entity in charge of the account.

Should You Add an Authorized User?

As the primary cardholder, you have to be very careful about who you add as an authorized user. Essentially, the authorized user can max out your credit card and you would ultimately be on the hook for paying off the balance. It all boils down to trust and this includes family members.

If you decide to add an authorized user, be sure that it is clear with the authorized user on how the credit card is to be used. You should sit down with them and discuss things like spending limits or emergency use only spending if you are putting limits on the card’s use. With Capital One online account access, you have the ability to review the account at any time if you need to monitor a card user’s spending.

Authorized User Benefits

By adding an authorized user to a Capital One credit card you are helping them build good credit assuming you make timely payments. This is very beneficial to someone who is just starting to build their credit. It will eventually help them to obtain their own credit card, a mortgage, a rental residence, and more. It can also teach the authorized user about financial responsibility and appropriately using credit.

Be aware that the primary cardholder still receives any rewards associated with the card from the spending of the authorized user. The authorized user’s spending will count toward rewards such as cash back or travel miles.