Being a second cardholder on someone else's credit card account may allow you to earn rewards, such as points or miles, on your purchases. However, the specific rewards program and earning structure will depend on the credit card issuer and the type of card. Some credit cards offer the same rewards earning potential to both the primary cardholder and authorized users, while others may have different earning rates or caps for each.
Building History
As an authorized user, your credit card activity may be reported to the credit bureaus and included in your credit report. This can help you build a positive credit history, especially if you are new to the United States and have limited or no other credit history. Having a longer credit history and a good payment record can make it easier for you to get approved for your credit card or loan in the future.
Name and Signature
As a second credit card holder, your name and signature may appear on the back of the credit card. This gives you the ability to make purchases and sign for them using the credit card, even if the primary cardholder is not present. However, it's important to use the card responsibly and make payments on time to avoid negative impacts on both your and the primary cardholder's credit.
It's worth noting that the terms and conditions for authorized user accounts can vary among credit card issuers, so it's advisable to review the specific details and policies of the credit card you're interested in to ensure you understand your rights and responsibilities as an authorized user.