Does Capital One Report Authorized Users to Credit Bureaus?

Adding an authorized user to your credit card account can be a great way to help someone build their credit history But in order for it to actually benefit their credit, the credit card issuer needs to report the authorized user’s activity to the credit bureaus So does Capital One report authorized users?

The short answer is yes. Capital One does tell all three major credit bureaus—Equifax, Experian, and TransUnion—about activity that is authorized by users. In other words, adding someone as an authorized user to a Capital One credit card account can help build that person’s credit, as long as the main cardholder uses the card responsibly.

How Authorized User Reporting Works

When you add someone as an authorized user to your credit card, they can use it to make purchases. However, as the primary cardholder, you are still responsible for making the monthly payments.

It’s not the same for authorized users as it is for primary account holders or joint account holders when it comes to debt. However, if the credit card company reports the activity, it can still help the authorized user’s credit by adding to their credit history.

For credit card activity to appear on an authorized user’s credit reports, two things need to happen:

• The credit card issuer must report authorized user activity to the credit bureaus.
• The credit bureaus must include that information on the authorized user’s credit reports.

Issuer Reporting Policies

While most major credit card issuers do report authorized user activity in some form, their specific policies can vary:

• Minimum age – Some issuers don’t report authorized users under 18 or 21 years old.
• Negative information – A few issuers may not report accounts with late payments or high balances.

Capital One keeps track of what authorized users do on accounts for people of all ages. This includes both positive and negative information.

Credit Bureau Reporting Policies

The three major credit bureaus – Equifax, Experian, and TransUnion – also have policies that determine if authorized user accounts appear on credit reports:

• Equifax reports authorized users 16 and older, including both positive and negative account history.
• Experian removes authorized user accounts that become delinquent or have other negative marks.
• TransUnion reports both positive and negative account history for authorized users.

So at Capital One, authorized users 16 and up will have the account reported to all three bureaus. Those under 16 may still have it reported to TransUnion and Equifax.

Credit Benefits of Being an Authorized User

Since Capital One reports authorized user activity, becoming an authorized user on a Capital One card can help build your credit in a few ways:

• Credit history length – The account history gets added to your credit reports and contributes to your length of credit history.

• Credit mix – Credit cards add to your mix of accounts, which is a factor in your credit scores.

• On-time payments – As long as the primary cardholder pays on time, it builds your history of on-time payments.

• Low utilization – A low balance relative to the credit limit helps keep your credit utilization low.

To benefit from these factors, the primary cardholder needs to use the card responsibly. That means making payments on time, keeping balances low, and not maxing out the credit limit.

How to Become an Authorized User

If you want to add an authorized user to your Capital One credit card, it’s easy to do online or through the mobile app. You’ll just need some basic information about them, like their name, date of birth, and Social Security number if you want them to have online access.

The authorized user also needs to be informed before being added, and both parties should be on the same page regarding responsible use.

Before adding an authorized user, consider:

• Your relationship and level of trust. Close friends or family members are common authorized users.

• Setting expectations for credit limits, spending, payments, etc. Communication is key.

• Potential advantages and disadvantages for both parties. Make sure it aligns with your goals.

• Alternatives like making it a joint account or having them apply for their own card.

Overall, authorized users on Capital One accounts are a great option if you want to simplify shared spending or help someone build credit history. Just be sure to add the user thoughtfully and use the card responsibly.

Frequently Asked Questions

How many authorized users can I add on my Capital One card?

Capital One allows primary accountholders to add multiple authorized users. The specific number allowed depends on the credit card and account status.

Can authorized users build credit even if they’re under 18?

Yes, authorized users under 18 can still benefit from Capital One reporting their activity. However, some restrictions may apply at the credit bureaus for users under 16.

What are the requirements to become an authorized user?

The primary requirements are permission from the accountholder, as well as your name, date of birth, and SSN if you want online account access. The accountholder must have an eligible Capital One card account.

Can I remove an authorized user from my account?

Yes, primary accountholders can easily remove authorized users online or through the Capital One app at any time. This revokes their access to make future charges.

Are authorized users responsible for paying the credit card bill?

No, authorized users are not legally liable for paying the credit card bill. The primary accountholder is responsible for making monthly payments.

The Bottom Line

Capital One clearly reports both positive and negative authorized user activity to the three major credit bureaus. So becoming an authorized user on a Capital One card account can be a great way to build your credit history through responsible use.

Just make sure to communicate expectations beforehand and remove authorized users if issues arise. Used properly, this feature allows authorized users to benefit from the primary accountholder’s good credit management.