What is an authorized user? How can it help me in getting approved for a bad credit used car loan? How can I become one or get one? All of these and more are going to be answered for you because an alarming number of people have absolutely no clue what any of this means. Not a problem though that is one of the reasons why we exist and would love to help give you some knowledge to further yourself in your life.
What are Authorized Users?
An authorized user will be someone who legally can be added to a credit card through a method called "piggybacking". This is going to be helpful for those who have a very poor credit score if they can get attached to someone with a very high credit score. This can usually be of great help in a few ways. The best part will be that the good activity from the one person is going to start appearing on the others credit reports and start improving them. It will also increase the amount of credit for the authorized user while lowering the debt ratio as well.Now the major advantage can also be the major downfall of this entire situation as well. Of course if all payments are made on time then it will look great for both people, but if they aren't being made regularly then it will in turn hurt both parties involved in this authorized user deal of piggybacking.
If you are wondering how exactly you can begin with this, well there are many credit card companies that will solicit people with high credit to ask if they would allow this. You can be assigned through this way so it is very likely that you may not even know the person who you will be piggybacking off of, and you will not have access to any of their credit accounts or any personal or financial information.