Utilizing Authorized User Accounts for Business Credit: Pros, Cons, and Best Practices

Jul 31, 2023

In the world of credit, authorized user accounts have emerged as a potential strategy for enhancing one's credit profile. While they can be beneficial, it's essential to understand how to use them properly and be aware of their limitations. This article will delve into the pros and cons of using authorized user accounts for business credit and provide practical advice for implementing this strategy effectively.

The Pros:

  1. Credit Score Boost: Becoming an authorized user can quickly increase your credit score as the account's positive payment history is added to your credit report.

  2. Credit History Length: If the primary account holder has had the credit card for several years, being added as an authorized user can instantly lengthen your credit history.

  3. Learning Opportunity: For new entrepreneurs, becoming an authorized user provides an opportunity to learn about credit management without the risks associated with being the primary account holder.

The Cons:

  1. Credit Damage: If the primary account holder misses payments or maxes out the credit card, it can negatively impact your credit score.

  2. Limited Control: As an authorized user, you have no legal control over the account, and the primary account holder can remove you at any time.

  3. Underwriters' Scrutiny: Underwriters are increasingly savvy about the potential manipulation of authorized user accounts. Some may choose to discount or ignore these accounts when evaluating your creditworthiness.

Best Practices:

  1. Choose Wisely: Ensure the primary account holder has a solid track record of credit management before becoming an authorized user.

  2. Monitor the Account: Keep a close eye on the account's activities. Any negative activity on the part of the primary user will affect your credit score.

  3. Use It as a Stepping Stone: Use your time as an authorized user to build up your own creditworthiness, with the aim of eventually securing your own credit accounts.


While authorized user accounts offer a fast-track method to boost your credit score, they are not without risks. A cautious and strategic approach is crucial when incorporating this strategy into your business credit plan. Remember, the ultimate goal should always be to build and maintain a robust, independent credit profile.

Invest in yourself with Broker Solution's career-focused courses.

Are you ready to take control of your financial future? At Broker Solutions Academy, we offer three courses designed to help you achieve your goals. Our courses include the following:

  • Broker Solutions Academy: In-depth training for those interested in becoming a business loan broker We provide you with the tools and knowledge necessary to become a successful business loan broker, including access to industry professionals, comprehensive training materials, and ongoing support.
  • Credit Consulting Academy: This comprehensive course is designed to teach you how to help yourself and others improve their credit scores. You'll learn how to analyze credit reports, identify areas for improvement, and implement strategies to help clients achieve their financial goals. In addition, you'll also learn how to fix your own credit and start your own credit consulting agency. This course provides you with the knowledge and tools necessary to help you achieve financial success while helping others do the same.
  • Unsecured Business Lines Academy (DIY): This course is for those interested in securing unsecured business lines of credit on their own. You'll learn how to navigate the lending landscape and gain access to funding sources that can help you start or grow your business.

Our courses are designed to help you start a new career or improve your financial health. Join us and start building a better future. Contact Broker Solutions Academy today!


Want Helpful Finance Tips Every Week?

Sign up below and be updated!

You're safe with me. I'll never spam you or sell your contact info.