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Adding an authorized user to a credit card account offers potential benefits but also comes with risks. Authorized users can help meet spending requirements and build their credit history. However, primary cardholders should choose reliable individuals, as they remain responsible for charges.
"An authorized user is a person who has been added to a primary credit card holder's account," and they receive cards linked to the main account. Some benefits include access to credit card perks and the ability to transfer loyalty points, but cardholders should be aware of the potential for increased spending and the impact on credit utilization.
Different credit cards have varying policies for adding authorized users. For example, the American Express Platinum Card charges a fee of $195 per user, but provides benefits such as lounge access and elite status in loyalty programs. In contrast, the Capital One Venture X Rewards card allows up to four users without additional charges, offering lounge access for each user and guests.
