What Is an Authorized-User Tradeline? A Plain-English Guide

If you’ve been told you need a “tradeline” to raise your credit score, you’re not alone in wondering what that means. Here’s the short version.

What a tradeline is

A tradeline is any account that shows up on your credit report: a credit card, car loan, student loan, or mortgage. Each one lists the account’s limit or balance, how long it’s been open, and its payment history.

What an authorized user is

When the main cardholder adds you as an authorized user, many card issuers report that account on your credit file too. That means the card’s credit limit and its record of on-time payments can appear on your report, even though you aren’t the one paying the bill.

Why it can help your score

• Lower credit utilization. A card with a high limit and a low balance increases your total available credit, which lowers the share of your credit you’re using.

• More positive payment history. A long record of on-time payments adds to your own history.

Payment history and amounts owed are two of the biggest factors in most credit scoring models, which is why a well-managed tradeline can make a difference.

What it can’t do

• It won’t remove late payments, collections, or other negative items already on your report.

• Some lenders and scoring models give authorized-user accounts less weight, or ignore them.

• Results depend on the rest of your credit profile. Someone with a thin file usually sees a bigger change than someone with many accounts.

Who it helps most

Authorized-user tradelines tend to help most if you have few accounts, high utilization on your own cards, or a short credit history, and you’re getting ready to apply for something specific.

Want to know if a tradeline makes sense for you? See Boostly’s plans. Every plan includes a 1-on-1 credit review.