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Key Differences Between An Authorized User And A Joint Account

- Nov 6, 2022 Building Credit, credit2 comments

If you own a credit card, you most probably already heard the term Authorized User, but have you ever heard of a Joint or Co-Applicant

Joints and co-applicants are a much less common term in the world of credit cards, as it is not even an available option by most issuers. 

Here in this post, we will go through the key differences between an Authorized User and a Joint.

The responsibility

The most important difference between an Authorized User (AU) and a joint, is responsibility. An Authorized User is not responsible to make any payments on the account, and is not liable to pay even if the primary card holder defaults.

With a joint though, the primary and the co-applicant are equally responsible to make payments. In a case where the primary fails to make a payment, the bank may collect payment from the co-applicant as well.

Regarding credit

Both, by an authorized user (in most cases) and a joint, the account will appear on the second party’s credit report. Both the good and the bad will get reported.  But there is a difference on how the account is reported. For an AU, the account will be marked as an AU, and with a joint, the account will be marked as joint. 

The newer credit models, starting from Fico 08 and above, do not include AU in their scoring models. Therefore, an AU will not help build a credit score with the newer models. But a joint does get counted, even on the new scoring models. Therefore, a joint will help with credit.

The good can sometimes be bad, too.

Being that a joint is responsible to make payments on the account, it helps build credit for the co-applicant. That same fact can sometimes be a negative. Because if there is unfortunately a late payment on the account, it will be much harder to dispute that with a joint, rather than if it would have been an AU. Therefore, I only recommend becoming a joint with someone that you really trust, as you need to keep in mind that any late payment caused by the primary will, unfortunately, affect you equally.

Availability

As mentioned above, becoming an AU on someone else’s account is very easy, as it’s offered by almost every single credit card issuer.

As of the date of this post, a joint is only offered by these banks:

  1. Bank of America
  2. US Bank
  3. Elan Financial (also owned by US Bank).
  4. Apple card
  5. Macy’s Amex card

Mortgages

It’s important to note, that even though I mentioned above that AU are not counted into the newer Fico scoring models, when it comes to mortgages, the older Fico 04 model is still in use. Therefore, in regard to mortgages, AU will help boost a credit score just as much as joints. Read more about this here.

If you have any questions about this post just Ask Sam.

Thanks!

Frequently asked questions
Which banks still allow joint cardholders?
Nowadays, most banks do not have the option of adding a cardholder as a joint, aka co-applicant. The following banks do allow joints: 1) Bank of America, 2) US Bank, 3) Elan Financial, 4) Apple Card (Goldman Sachs), 5) Macy’s Amex Card (DSNB)
Does an authorized user on an Amex Platinum card get all the benefits?
No. You can add authorized users on different levels which will have different fees but they don't necessarily have the same benefits as the primary cardholder
If I have an authorized user on my card and they don’t pay or are delinquent on a different card, does it affect my credit?
No
Do authorized users have the same benefits as the primary?
Not necessarily. For example, the Amex Platinum card has return protection but authorized users don't (unless the authorized user is added on Platinum level)
Someone told me to get added as an additional to a Bank of America card as it shows on the credit report as a joint. Is that true?
You can be added to a Bank of America card as a joint but that's not the same process as being added as an authorized user. If you want to get added as a joint then both of you need to call in on a three way call and specifically ask to be added as a co- applicant (joint)

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Sam Sam has nearly a decade's worth of experience educating his many readers on everything credit. Sam spends his days checking out credit cards for a full report, from the minute benefit details to the shebang of welcome bonuses. Plus studying the ins and outs of building proper credit. It’s his favorite pastime and he loves sharing it with others.

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2 Comments

  1. Very informative articles, I’m learning a lot!

    Reply
    • Thanks Rikki

      Reply

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