Pay to Become an Authorized User

In the world of credit building, there’s a lesser-known strategy that some people turn to in order to boost their credit score: paying to become an authorized user on someone else’s credit card. It’s a simple yet powerful method that allows individuals to “borrow” the primary cardholder’s credit history and, in some cases, quickly improve their own credit profile. But like any financial move, this approach comes with its own set of pros and cons. Let’s explore how to pay to become an authorized user.

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

In this blog post, we’ll explore the details of how paying to become an authorized user works, who it might benefit, and what risks you should consider before making the investment. This way, you’ll be better equipped to decide whether it’s a good fit for your financial goals.

What Does It Mean to Pay to Become an Authorized User?

When you pay to become an authorized user, you’re essentially entering into a financial agreement with the primary cardholder. In most cases, you’ll pay a fee in exchange for being added to their credit card account. As an authorized user, you won’t have any responsibility for paying the balance, but you’ll benefit from the account’s positive credit history—assuming the primary cardholder has managed their credit well.

The idea is that the account’s details, such as payment history, credit utilization, and account age, will appear on your own credit report. This can potentially boost your credit score, especially if you don’t have much credit history or are working to recover from a lower score. But it’s not always a straightforward win-win scenario. There are several things to keep in mind before jumping into this arrangement.

The Benefits of Paying to Become an Authorized User

Paying to become an authorized user has gained popularity due to the perceived ease of improving credit scores. Let’s explore some of the main benefits:

1. Potential to Boost Your Credit Score Quickly

One of the most significant advantages of paying to become an authorized user is the potential for a quick credit score boost. When you’re added to an account with a long-standing history of on-time payments and low credit utilization, these positive attributes are reflected on your credit report. This can have a powerful impact on your score, particularly if your existing credit profile is thin or less-than-ideal.

For example, if you have a short credit history or have recently encountered a few late payments on your accounts, being linked to a well-managed credit card can provide a much-needed boost. However, the results aren’t guaranteed, and it largely depends on the specific details of the primary account.

2. Increased Chances of Qualifying for Better Credit Products

A higher credit score can open doors to better financial opportunities, including the ability to qualify for premium credit cards, loans with lower interest rates, or even a mortgage. Paying to become an authorized user can act as a stepping stone, helping you meet the minimum credit score requirements for such financial products.

By leveraging the primary account’s positive credit history, you might also gain access to higher credit limits and more favorable terms. This can make a significant difference if you’re working towards building a strong credit foundation.

3. Low-Risk Credit Building Strategy

Compared to other credit building strategies, becoming an authorized user is relatively low risk—at least in terms of direct financial obligations. Because authorized users aren’t responsible for paying the card’s balance, you won’t be held liable if the primary cardholder defaults. This allows you to benefit from the account without the burden of repayment responsibilities.

However, this doesn’t mean the strategy is completely risk-free. There are some important considerations, such as the reliability of the primary cardholder, which we’ll delve into shortly.

The Drawbacks of Paying to Become an Authorized User

While there are many potential benefits, there are also some considerable risks and limitations to consider before you decide to pay to become an authorized user.

1. Results Are Not Guaranteed

One of the most significant drawbacks of paying to become an authorized user is that the credit score improvement you’re hoping for is not a given. Credit scoring models consider several factors, and simply adding a new account to your report may not have as large an impact as expected. Moreover, not all credit scoring models take authorized user accounts into consideration. So, if you’re looking to qualify for a loan that uses a specific scoring model, the added account may not help at all.

Additionally, if the primary cardholder has any negative marks on their account, such as missed payments or high balances, these could actually harm your credit profile rather than help it.

2. Potential Ethical and Legal Concerns

Paying to become an authorized user is sometimes referred to as “piggybacking” credit, and it’s a somewhat controversial practice. While it’s not illegal, some financial experts view it as an attempt to game the credit system. Certain lenders and creditors frown upon this strategy, and there’s always a risk that it could backfire if the practice becomes more scrutinized in the future.

If you decide to go this route, it’s essential to work with a reputable service or individual, and ensure full transparency in the process. Avoid any arrangements that seem questionable or that promise more than they can deliver.

3. Financial Cost and Limited Duration

Depending on the agreement, paying to become an authorized user can be expensive. Fees can range from a few hundred to several thousand dollars, depending on the quality of the account and the potential credit benefits. Additionally, these agreements often come with a limited duration. You might only remain an authorized user for a few months or a year, after which you’ll need to pay again to renew your status.

This temporary nature means that any credit score boost you experience might be short-lived, especially if your own credit habits don’t support long-term improvement.

Should You Pay to Become an Authorized User? Final Thoughts

Deciding whether to pay to become an authorized user depends on your financial situation and credit goals. For some, it can provide a quick and effective boost, helping them qualify for better financial products and lower interest rates. But for others, the cost and potential risks may outweigh the benefits.

If you do choose to explore this route, make sure to vet the primary cardholder or service provider thoroughly. Look for accounts with excellent payment histories and low balances, and be cautious of any arrangement that seems too good to be true. It’s also wise to continue building your credit through other means, such as making on-time payments on existing accounts, keeping your credit utilization low, and applying for new credit responsibly.

In the end, paying to become an authorized user can be a useful tool, but it should be just one part of a broader credit-building strategy. When used wisely, it can help pave the way toward a stronger credit profile and better financial opportunities in the future.

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.

Please feel welcome to ask any questions below.

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