Can I pay to be an authorized user?

Adding yourself as an authorized user to someone else’s credit card account can be a strategic move to improve your credit score or build credit history. But what if you don’t know someone with a stellar credit profile? This is where the question comes up: “Can I pay to be an authorized user?” The short answer is yes, but there’s more to the story than just paying a fee. In this article, we’ll explore the mechanics of paid authorized user services, whether they’re a good idea, and what risks you should consider before opting in.

[Related: buy tradelines from us or read the “Resources” section below]

Understanding Paid Authorized User Services

What Does It Mean to Be an Authorized User?

When you’re added as an authorized user on someone else’s credit card, you get access to that credit card account’s history. This can have a significant impact on your credit score, depending on the account holder’s payment history, credit utilization, and account age. As an authorized user, you can use the card (though that’s not always the main goal) and benefit from the positive aspects of the account, such as a long history of on-time payments.

The main advantage here is that you don’t bear responsibility for repaying the debt. The primary account holder remains responsible for all transactions. But why would anyone pay to be an authorized user? The answer lies in how credit reporting works.

How Do Paid Authorized User Services Work?

Paid authorized user services are sometimes referred to as “tradeline renting” or “piggybacking.” Essentially, companies connect people who want to improve their credit scores with credit cardholders willing to add an authorized user for a fee. The company typically vets the credit profiles of the cardholders to ensure they have excellent credit histories, which can then be leveraged by the authorized user.

In exchange for a fee (which can range from $100 to over $1,000 depending on the credit profile and account age), the authorized user is added to the account temporarily. The goal is to get the account history reported on the authorized user’s credit report, which can improve their credit score by lowering their credit utilization ratio or increasing the average age of their accounts.

However, paying to be an authorized user is not without controversy. The practice is viewed differently by lenders, credit bureaus, and financial experts, leading to some debate over its effectiveness and ethics.

Benefits and Drawbacks of Paid Authorized User Services

Potential Benefits of Being a Paid Authorized User

For someone with a limited or poor credit history, paying to become an authorized user can seem like an attractive shortcut to a higher credit score. Here’s why:

1. Boost to Credit Score: If the account has a long history of on-time payments and low credit utilization, this positive information will be reflected on the authorized user’s credit report, often leading to a higher credit score.
2. Increased Access to Credit: A higher credit score can lead to better offers on loans and credit cards, potentially saving you thousands in interest over time.
3. Lower Credit Utilization: Credit utilization accounts for around 30% of your credit score. By being added to a high-limit card with a low balance, your overall credit utilization ratio could drop, which could improve your credit score.

Risks and Potential Pitfalls

Despite the potential benefits, there are some significant risks and downsides to consider before paying for an authorized user service:

1. Ethical and Legal Concerns: Some lenders and credit bureaus frown upon this practice, viewing it as an attempt to game the system. While not illegal, it could raise red flags with lenders.
2. Cost vs. Benefit Analysis: The cost of using these services can be quite high, and there’s no guarantee that your credit score will improve enough to justify the expense. In some cases, the increase might be minimal, or the added account may not be reported at all.
3. Temporary Benefit: You’re typically only an authorized user for a few months, after which the account is removed from your credit report. This can lead to a drop in your credit score if your credit utilization or average account age changes significantly after removal.
4. Potential for Scams: Not all paid authorized user services are legitimate. Some may promise results they cannot deliver or even engage in fraudulent practices. It’s important to thoroughly research any company offering these services to ensure they are reputable and transparent.

Is Paying to Be an Authorized User the Right Choice for You?

Whether or not you should pay to be an authorized user depends on your unique financial situation and goals. For some, it may be a worthwhile investment, while for others, it may not yield the desired results. Consider the following factors when making your decision:

1. Your Current Credit Profile: If your credit report has major negatives like late payments or collections, adding yourself as an authorized user may not have as much impact. It could be more effective to work on resolving these issues before considering paid authorized user services.
2. Alternative Options: There are other ways to build or improve your credit, such as secured credit cards, credit-builder loans, or becoming an authorized user on a friend or family member’s card for free.
3. Long-Term Financial Health: Quick fixes are rarely the best approach when it comes to credit health. A more sustainable strategy involves responsible credit use, on-time payments, and lowering credit card debt over time.

Paying to be an authorized user can provide a short-term boost, but it’s not a substitute for responsible credit management. It’s a tool that should be used with caution and in conjunction with other credit-building strategies. So, before you pay for a quick credit fix, take the time to weigh the pros and cons carefully.

Resources

The following is a list of resources to start learning about tradelines. We have a list of tradelines for sale, and a tradelines FAQ. Also various posts about tradelines, and a chart of tradeline prices from competitor sites. Finally, a contact form to ask further questions.

Can I pay to be an authorized user? Please feel welcome to ask any questions below.

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