Information about Late Payments Reported on an Authorized User's

Many credit card companies report their card payment histories on the credit reports of both the primary cardholder and any authorized users. I am sure that by making your daughter an authorized user, your intention was to help her in boosting her overall credit profile. Reporting accounts on the credit reports of authorized users is allowed by federal law, despite the fact that authorized users are not legally liable for the debts. The Equal Credit Opportunity Act of 1974 allows this. Among other things, this was designed to allow housewives to establish credit in their own name by being listed as an authorized user on their husband's credit account.

Double check with the credit card company about their authorized user policy. I believe the Fair Credit Reporting Act governs this, but it wouldn't hurt to double check with the card issuer, just so you know your rights. Not all credit card companies report authorized users, some like MBNA only report authorized users that are a spouse of the primary cardholder. A few don't report information for authorized users at all.

For more information on credit reporting and credit scores, please visit our credit information and resources page available.

I hope the information provided helps you Find. Learn. Save.

Best,

Bill

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