Consumer Terms
Authorized User: Definition
A person permitted to use an account but not liable for the debt.
Definition
An Authorized User is an individual who has permission to use a credit account but is not contractually liable for the debt. Authorized users are reported with ECOA Code 3. While they can benefit from positive payment history, they are not responsible for payments.
Examples
Child added to parent's credit cardEmployee on corporate card
Usage Notes
- Not legally responsible for debt
- Can be removed from account at primary holder's request
- Often used to build credit for young adults
Related Terms
More Consumer Terms
Primary Consumer
The main individual responsible for a credit account.
Associated Consumer
Any additional individual connected to a credit account.
ECOA Code
A code indicating a consumer's relationship to an account.
Joint Account
An account where two or more consumers share responsibility.
Social Security Number
The consumer's 9-digit SSN used for identification.
Date of Birth
The consumer's birth date used for identification.
Generation Code
A suffix indicating generational distinction in names.
Consumer Information Indicator
A code providing special status information about a consumer.
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